The rising popularity of Accessory Dwelling Units (ADUs) is notable. Considered affordable housing solutions, these units often serve as a source of monthly income for homeowners or can be repurposed as needed, as indicated by the City of Laguna Beach. To facilitate this, financial assistance programs have been launched, including the Affordable ADU Loan Program by the Orange County Housing Finance Trust (OCHFT).
The City of Laguna Beach has stated that eligible homeowners can to acquire up to $100,000 in construction-to-permanent loans through the program which bear 0-3% interest rates. Furthermore, principal forgiveness is offered each month if the ADU is rented to a very low-income tenant. After a decade as an affordable rental, the ADU’s usage restriction is lifted, and loan repayment is deferred for another ten years. Additional assistance includes a $4,500 forgivable loan for property management and $5,000 for disability-accessible units.
OCHFT highlights that affordable ADUs contribute in the community by potentially addressing the housing crisis. The benefits of the program aren’t only for low-income tenants, but also for cities securing affordable housing credits. Voucher holders are a significant focus, signaling a move towards greater housing equity. Homeowners in this program also benefit from rental income and ultimately, an unrestricted ADU.
According to OCHFT, the overarching goal of the Affordable ADU Loan Program is to tackle the housing crisis in Orange County. Loan repayments are used to finance further ADUs, creating a sustainable solution to a pervasive issue.
In addition, the application process, now open, is for homeowners who want to benefit from this initiative. More information about the application and program requirements can be found at bit.ly/affordableADU.