Loveland council advances $100,000 ADU toolbook budget with unanimous first-reading vote

The Loveland City Council voted 9-0 Tuesday to approve first reading of Ordinance No. 6846, a supplemental budget measure to accept a state grant for an accessory dwelling unit toolbook. The ordinance appropriates $75,000 from the Colorado Department of Local Affairs grant program and adds $25,000 in existing city General Fund appropriations, for a total project budget of $100,000.

City staff said the money will fund a consultant-led effort to create a comprehensive online guide to help residents navigate the ADU process from early planning through permitting and construction. The proposed toolbook is intended to cover plan review, permitting fees, financing options, construction types such as modular and 3D-printed units, and utility connections, with English and Spanish versions planned.

Presenting the item, a staff member told council the city sought the grant after Loveland became an "ADU Supportive Jurisdiction" earlier this year. Staff said the city had already approved the required $25,000 local match in April and described the grant terms as favorable because the city match is 25%, rather than the larger local share often required in other programs. If the ordinance had not advanced, staff said the city would not have been able to accept the $75,000 award.

Public comment on the budget item was limited. Cindy Van Slambroek thanked the city for pursuing the grant and called it an important step toward expanding housing options, while also urging officials to keep affordability in mind for households below area median income benchmarks.

Council discussion showed broad support for ADUs but some skepticism about whether a consultant-produced guide would address the biggest obstacles to building them. One council member said many properties remain ineligible because of lot and setback rules and pointed to utility requirements, including a rule that an ADU tie into the house sewer line before reaching the main, as examples of barriers that can make projects impractical. The member said the city should look for more "ways to yes" even if that means charging fees to address city concerns.

Council Member Kalina Middleton questioned whether the spending would solve the real problem if cost, financing and utility issues are what stop most projects. Middleton said residents already have access to free consultations and asked what a $100,000 consultant effort would provide beyond information the city already offers.

Carrie Burchett of Strategic Planning responded that the main value would be consolidating scattered information and guiding residents through each step after their initial consultation. Burchett said residents often leave those meetings overwhelmed and unsure what to do next, especially on financing and construction details. She said the toolbook would include sample applications, links to property information, utility connection guidance and contacts for financing resources, so homeowners would not have to search for those materials on their own.

Mayor Pro Tem Andrea Samson praised the grant as an opportunity to assemble information in one place and said the city should also consider involving lenders and property tax officials as the guide is developed. Another council member asked whether the toolbook would create ongoing costs, and staff replied that city staff would be responsible for keeping it updated, with outside technical help only if needed later.

Second reading of the ordinance is scheduled for Sept. 1. Staff plans to bring a separate resolution authorizing execution of the grant agreement at that time, then move ahead with accepting the grant and issuing a request for proposals for a consultant.