Last Call for Pasadena Second-Unit ADU Program Today

The Pasadena Housing Department is accepting last-minute applications for the Second-Unit ADU (accessory dwelling unit) Program, a new affordable housing initiative in the City that provides incentives to homeowners who add an affordable rental unit on their property.

The deadline is at 1 p.m. on Friday, October 30.

The Second-Unit ADU Program provides homeowners financial assistance to build an ADU through new construction or by converting their garage into a rental unit. Assistance is also available to rehabilitate and bring up to code an existing unpermitted “granny flat” or illegal garage conversion.

For new construction, the program can provide up to $150,000 in construction loans, payable in three years at one percent simple interest. The loan must be refinanced prior to the end of the deferred payment period.

For work to bring an unpermitted rental unit up to code, the program can provide a maximum $75,000 20-year loan at one percent simple interest, with deferred payments for the first five years. The owner’s household income must be under 80 percent of the area median income (AMI) to qualify.

To be able to beat the deadline, go to www.cityofpasadena.net/housing/second-unit-adu-program and download the application form corresponding to either of the two ADU program options. Your form must be submitted by 1 p.m. Friday, October 30.

The page also contains a replay of the webinar which explains the Second-Unit ADU Program in detail. The webinar was conducted in September.