Long Beach Launches 0% Interest Loan Program for Accessory Dwelling Units

The City of Long Beach has announced an exciting new pilot program aimed at making it easier for homeowners to build Accessory Dwelling Units (ADUs) on their property. The program offers 30-year loan financing with a 0% interest rate, providing up to $250,000 to cover the costs of building an ADU. The program is limited to 10 participants, making it a unique opportunity for homeowners interested in creating affordable rental units.

Program Goals and Benefits

The primary goal of this initiative is to increase affordable housing options in Long Beach. By providing financial assistance, the program helps homeowners with not just financing but also the designing, construction, and permitting processes involved in building an ADU. This creates a more streamlined and accessible pathway for property owners to add rental units to their homes, offering more housing opportunities to the community.

Who Can Apply?

To qualify for the loan, applicants must meet several key requirements:

• Ownership and Residency: Applicants must own and live in a single-family or multi-family home (with no more than four units) located within Long Beach city limits.
• Rental Agreement: Homeowners must agree to rent out their ADU at an affordable rate.
• Priority Consideration: Priority will be given to applicants who intend to rent their ADU to individuals or families receiving housing assistance vouchers.

Why This Matters

ADUs, sometimes referred to as “granny flats” or “backyard homes,” are increasingly seen as a solution to California’s housing shortage. Long Beach Mayor Rex Richardson underscored the program’s importance by stating, “This program will also directly support Long Beach property owners and sends the message that we are in favor of building new housing—quite literally—in our backyards.”

For homeowners looking to add value to their property while contributing to the community’s affordable housing needs, this is a golden opportunity. The zero-interest loan combined with the assistance provided throughout the process makes it easier than ever to build and rent out an ADU.

How to Apply

Applications are open through November 30th. Interested homeowners should contact the Long Beach Community Development Department or the Long Beach Housing Authority for more information and to submit an application.

This program marks a significant step forward in Long Beach’s efforts to expand affordable housing, offering both financial support and guidance for homeowners ready to take the next step.