The City of Pasadena has expanded its affordable housing options through a program providing up to $225,000 in 1% simple-interest construction financing. The program gives residents a way to construct a new accessory dwelling unit (ADU) on their property, which they can then lease to a Pasadena Housing Choice Voucher tenant.
The Pasadena Second Unit ADU program offers full project management support, helping qualified homeowners in the community construct a new ADU.
Eligible homeowners can receive a construction loan up to $225,000 at 1% simple-interest, no payments for three years during construction and lease-up, zero out-of-pocket design, permitting or construction costs and management support. They also can receive guaranteed rental income, the city said, by leasing the completed ADU to a Pasadena Housing Choice Voucher tenant for seven years.
“This program removes the barriers that usually make ADU construction overwhelming or financially out of reach,” the city said in a news release. “Homeowners can build wealth, increase the value of their property and help create stable, affordable housing for Pasadena residents.”
Applications are currently being accepted for the program, and priority is given to income-eligible homeowners earning below 80% of the Area Median Income. Learn more at CityOfPasadena.net/Housing/Second-Unit-Adu-Program.