Accessory Dwelling Unit Funding Program Expected to Dominate City Committee Meeting

Published : Monday, May 15, 2017 | 5:19 AM

The Pasadena City Council’s Economic Development and Technology Committee will receive an update on the draft guidelines being prepared by the Department of Housing and Career Services for a proposed Accessory Dwelling Unit Funding Program in the City during its regular meeting Tuesday, May 16.

At the same time, Economic Development Manager Eric Duyshart will report on updates to the City’s Economic Development Master Plan (EDSP), which currently focuses on job creation, strengthening Pasadena’s retail districts, promoting its technology sector and increasing visitors to the City.

Duyshart will present detailed steps about how his department is implementing each of the strategies in the Master Plan for the City Council’s information and to solicit feedback from the Committee members.

Since 2012 when the EDSP was formulated, the Economic Development Department has taken various steps to implement the priorities identified in it as well as in the 2012 Economic Development Task Force Report. With new challenges to economic development arising from macro-economic changes, regional forces and the realities of new competition, Duyshart says additional work will be needed to further advance the goals and strategies of the Pasadena EDSP.

On the housing front, Housing and Career Services Manager William Huang will explain the goals, funding requirements, and partnership strategies of the proposed Accessory Dwelling Unit Funding Program.

The proposed program is in anticipation of revisions to the City’s Second Dwelling Unit Ordinance that the City Council is currently discussing. The revision is necessary to align the ordinance with state law, particularly Assembly Bill 2299 and Senate Bill 1069 which amended various sections of the State Government Code in relation to second dwelling unit regulations.

Huang said the proposed Accessory Dwelling Unit Funding Program will aim to bring illegal garage conversions into compliance as legal Accessory Dwelling Units (ADUs, a new terminology that replaces Second Dwelling Units), increase the overall supply of housing by increasing legal ADUs, and create an easy to use rehabilitation funding program that mirrors the City’s existing single-family rehab program.

Huang is proposing that the program start off on a pilot basis with initial funding of about $275,000. As proposed, the program will be administered by the Neighborhood Housing Services of Los Angeles (NHS), which the City currently contracts to administer its single-family rehabilitation loan program using federal funds.

With the program, the City could extend loans to low-income households with existing illegal garage conversions so that they could rehabilitate the units and bring them into compliance as legal ADUs. Rehabilitation may include improving plumbing, electrical and HVAC systems and bringing the building structure in compliance with City regulations.

According to the proposal, low-income and moderate-income homeowners with illegal garage conversions can receive up to $50,000 for a 20-year deferred payment loan at interest rates of between one and three percent, depending on the homeowners income level.

The loan will be secured by a deed of trust.

The EDTech Committee meeting begins at 5:30 p.m. at the Pasadena City Hall Council Conference Room S249.

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