Summit County leaders, eyeing more ways to increase the county’s affordable housing supply, are hashing out the details of a new program that would pay homeowners to create accessory dwelling units — or ADUs. 

Also known as granny flats, ADUs are housing units that are attached to or detached from a main home, such as a loft or guest house. County officials have loosened regulations around building these units and now allow ADUs in most residential areas — so long as they are rented to members of the workforce. 

During a June 27 Summit Board of County Commissioners meeting, officials discussed ways to build on ADU-friendly policies with a $500,000 pilot program that would subsidize future conversion and construction. 

Under the current proposal, the county would pay between $25,000 and $60,000, or up to 25% of the full cost, for conversion or new ADU construction. The lower amounts, $25,000 to $35,000, would cover conversions while $40,000 to $60,000 would go toward construction. 

The money would be contingent on homeowners ensuring the ADUs go to renters making no more than 110% of the county’s area median income. According to 2023 figures, that translates to $85,360 for an individual. 

“I wonder if we ought to think about doing a sliding scale,” said Commissioner Tamara Pogue, adding that she would like to see more incentive for homeowners’ to rent below the 110% figure. 

Pogue proposed increasing the funding cap from 25% to 30% of the full cost for those who rent at 100% of the median income. Pogue also floated bumping total funding to as much as 40% of the total cost for those who rent at 80% of the median income. 

At 100% of the median income, an individual would be making $77,600 while at 80% it would be $62,080. 

“Obviously, we don’t want to go so high that we’re depleting the funds,” Pogue said, “but it might just give us some better data for where we need to sit.”

Be more informed in 2025.

Sign up for daily or weekly newsletters at SummitDaily.com/newsletter

According to a memo prepared by housing director Jason Dietz and building official Don Bantam, conversion and construction costs for ADUs range from $90 to $600 per square foot, with the average ADU being just over 800-square-feet. 

“Every construction project is a little different,” Bantman said. “I think if we shoot at around $500 per-square-foot, I think that’s pretty fair” for new ADU construction, he added. 

The pilot program is mostly focused on new construction, Dietz said, with $400,000 of the $500,000 in initial program funds earmarked for new units. 

Officials are also looking into paying water and sewer tap fees up front for new units so long as the county is able to recoup the cost if a homeowner does not complete the ADU. Dietz said, “There’s a lot of different districts out here” when it comes to providing water and sewer, adding some are more receptive to participating in the program than others. 

Pogue also questioned if the program should include “an extra incentive for climate-friendly, net-zero, carbon-neutral,” construction. 

Several rebate programs currently exist for most county homeowners, as well as federal rebates and tax credits, that would pay residents to install green energy appliances. That includes up to $2,000 for energy efficiency upgrades through Energy Smart Colorado, up to $1,950 for solar installation through Solarize Summit and a combined $18,690 in federal rebates for heat pumps, electric cookers and more. 

While Pogue said she is interested in exploring if the ADU program can further bolster green incentives, she said it shouldn’t come at the cost of holding up the program’s rollout. 

Commissioner Josh Blanchard said he supports the proposed changes to the program but stressed the importance of adequate staffing to support the policy should it become long term.

“We all feel great about this, but we want to make sure we have the resources to do a good job,” Blanchard said.