City’s ADU Program Could Get Additional Funds

The City Council adopted a resolution that could bring much needed funds to expand the city’s 2nd Unit ADU program.

The council unanimously adopted a resolution approving a $2.5 million grant application for California Department of Housing and Community Development’s (HCD) CalHome program funds.

The grants would provide financing for the rehabilitation and construction of accessory dwelling units (ADUs).

The pilot program offered homeowners comprehensive assistance to finance, design, permit, and construct new accessory dwelling units (ADUs).

Through the program, homeowners applied for a loan of up to $150,000 to construct a new ADU in their backyard or convert their garage, with a requirement to rent the unit to a Pasadena rental assistance client for seven years. Low-income homeowners also applied for a $75,000 loan to bring an illegal garage conversion up to code.

During a 30-day application period, the City received 35 applications. Due to the program’s limited funding, only five applicants were selected.

Those projects are currently in the design phase. The recommended resolution would enable the city to submit an application to the CalHome program for $2.52 million in grant funding.

The CalHome program supports existing homeownership programs aimed at very low-, low-, and moderate-income households.

“The goal is to increase homeownership, encourage neighborhood revitalization and sustainable development, and maximize the use of the existing housing stock through various activities.”

CalHome accomplished that by assisting single-family homeowners to construct or rehabilitate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs).

HCD is accepting applications through a notice of funding availability (NOFA) for its CalHome program, granting up to $5 million per application.