By North Forty News Staff | NorthFortyNews.com
New county initiative offers financial incentives, technical support, and fee credits to homeowners who build affordable accessory living areas.
Larimer County is launching a new program designed to make it easier and more affordable for homeowners to build Accessory Living Areas (ALAs), creating new rental housing options in unincorporated parts of the county while helping address Northern Colorado’s ongoing housing shortage.
The Backyard Boost Program is funded through a partnership between the Colorado Department of Local Affairs (DOLA) and Larimer County, combining a $140,000 state appropriation with matching county funds. In exchange for financial assistance, participating homeowners agree to rent their new living space at an affordable rate for at least 36 months.
Larimer County is the first county in Colorado to opt into House Bill 24-1152, legislation aimed at expanding accessory living areas in unincorporated communities, and was also the first county selected by DOLA to receive funding through the state’s Accessory Dwelling Unit Grant Program. The initiative supports the county’s voter-approved Proposition 123 affordable housing goals.
The Backyard Boost Program is a collaborative effort between Larimer County Community Development and the Larimer County Office of Housing Stability. Officials say the program responds directly to findings from the county’s Housing Needs Assessment, which identified high construction costs, rising land prices, and a shortage of affordable housing for households earning less than 50% of the Area Median Income.
Eligible projects include accessory living areas built within an existing home, attached additions, or detached structures. The program provides both financial incentives and technical support throughout the development process.
Rather than reimbursing homeowners after construction, Larimer County will credit eligible development and building permit fees directly when permits are issued, reducing upfront costs. County officials say this approach encourages homeowners to add long-term value to their property while creating stable, high-quality rental housing for local residents.
Homeowners participating in the program will also have access to educational resources and ongoing landlord support through Housing Partners of Larimer County.
To help residents learn more, Larimer County has developed an ALA Toolkit and will host a free Backyard Boost Workshop and Resource Fair on Thursday, Aug. 20, 2026, at 5:30 p.m. in the first-floor Hearing Room of the Larimer County Administration Building, 200 W. Oak St. in Fort Collins. The event will explain program requirements, development options, financing opportunities, and available resources. Advance online registration is required. A second workshop is planned for October, with details to be announced.
Residents interested in participating can learn more through Larimer County’s Backyard Boost program or contact the Larimer County On-Call Planner at 970-498-7679.
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Source: Larimer County Office of Housing Stability