Denver’s Backyard Cottage Pilot Program Saves Communities and Families
Backyard cottages like this one are creating housing stability in Denver. (Photo source: Sightline Institute on Flickr.)
City officials are struggling to balance the needs of their communities with the complex, costly and time-consuming demands of building affordable housing. Many of them face an increasingly dire situation: rising rents, skyrocketing property taxes and the displacement of longtime residents. For many, the challenge is how to provide affordable housing without losing the character and stability of existing neighborhoods.
In Denver, a group of city officials, community leaders and nonprofit organizations decided to try something different. They launched the West Denver Single Family Plus (WDSF+) ADU Pilot Program, a unique initiative that helps homeowners build backyard cottages (also known as accessory dwelling units or ADUs) on their properties. These small, independent living units — ranging from tiny homes to converted garages — can be rented out at below-market rates, providing a crucial income stream for homeowners while also increasing the supply of affordable housing.
The program’s success has been notable: With financial assistance, technical support and low-interest loans, homeowners are now able to construct ADUs at a fraction of the typical cost. Michelle Chávez, a Denver resident, built an ADU in her backyard and is renting it to a family that had previously experienced homelessness. Chávez views the ADU not just as a source of income but as a way to create long-term housing stability for her family.
“It’s kind of building for my kids,” says Chávez. “That way, when they’re ready to move out, they have a place to go.”
Since its inception in 2019, the WDSF+ program has helped homeowners in underinvested neighborhoods like West Denver stabilize their housing situations and protect themselves from the soaring property taxes and rent increases threatening to push them out. The ADUs are particularly valuable in neighborhoods where families are facing increasing pressure to leave because they can no longer afford the rising costs of living.
In addition, the ADUs have made a significant impact on the affordability crisis in Denver. By enabling homeowners to build rental units on their existing properties, the program avoids the need to demolish existing homes or disrupt neighborhoods with large-scale development projects. This approach offers a smaller footprint while addressing a critical need for affordable housing.
If you’d like to bring more housing to your community, download “The Housing-Ready City: A Toolkit for Local Code Reform.” It presents six code reforms that local officials can implement today to alleviate the housing crisis.
Want to go even deeper? Sign up for the spring session of the Accelerator to get coaching from Strong Towns experts. Discuss approaches with other professionals and develop a plan to make your community housing ready.
