The Grand Junction City Council recently approved an Accessory Dwelling Unit (ADU) Production Program intended to help spur the creation of new ADUs to assist in alleviating the shortage of affordable housing. The city allocated $250,000 in funding to this program. The city will host an ADU workshop on April 26, 2023, at 5:30 p.m. at City Hall to provide information to those interested in ADUs and the new ADU Production Program. Additional ADU workshop dates are available on a first-come-first-served basis. Workshops are free but participants must register online.
The shortage of affordable housing in Grand Junction was identified in the city’s Housing Needs Assessment conducted in 2021. Following the completed assessment, the city adopted a housing strategy including one targeted to encourage the creation of new ADUs. The ADU Production Program provides incentives and supports the construction of ADUs within or attached to existing principal structures on the property in addition to those that are detached from the principal structure and are on a permanent foundation. The ADU Production Program provides the opportunity for an increase of 16-26 additional ADUs to be developed in the next year and is funded through an appropriation of $250,000 from the city’s budget.
The ADU Production Program has two tiers; one for anyone building a new ADU, and a second one available only for properties that are owner-occupied. In the first tier of the program, the city pays development impact fees (traffic, parks, police, and fire) as well as Persigo wastewater and city water Plant Investment Fees. In exchange, the ADU must be constructed within one year and the owner must commit to having the ADU in operation as a long-term rental for five years. In the second tier, properties that are owner-occupied by a household with an income of less than 140 percent Area Median Income will be aided by an additional incentive amount for a total of up to $15,000. To be eligible for the second-tier funding, the property owner must commit to an additional two-year (seven total) term for the ADU to operate as a long-term rental and the owner must live on-site. The city’s funding provides a significant offset of the costs of constructing ADUs for those property owners. For information about ADU workshops or the ADU Program, contact the Housing Division at 970-256-4081 or email@example.com, or visit gjcity.org/housing.