Napa County Announces Forgivable Loans for Affordable ADU Rentals

Homeowners in the county will be eligible for the loans if they comply with affordability requirements for five years.

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December 1, 2022, 10:00 AM PST

By Diana Ionescu @aworkoffiction

Napa County residents will now be able to access forgivable loans for building accessory dwelling units (ADUs), provided that they rent the ADU at below-market rates for five years, with a portion of the loan to be forgiven for each year of compliance.

According to an article by Barry Eberling in the Napa Valley Register, “Napa County will offer maximum forgivable loans of up to $45,000 for a studio, $80,000 for a one-bedroom unit and $105,000 for a two-bedroom unit.” As Eberling explains, “County officials hope the result will be 65 to 75 accessory dwelling units built to house 145 to 160 people. Fifty homeowners have already expressed interest in the loans.”

Additionally, “The county is spending another $1 million on a related program to incentivize the building of market-rate units. It will offer participating homeowners such assistance as a landlord matching program, permit streamlining, feasibility studies, grants for loan fees and help from the Napa Sonoma ADU Center.”

Wednesday, November 30, 2022 in Napa Valley Register

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