The City of Long Beach is now accepting applications for its Backyard Builders Program (Program). The goal of the pilot program is to incentivize Long Beach homeowners to create an affordable rental unit on their property by providing them with comprehensive assistance for financing, designing, permitting and constructing a new accessory dwelling unit (ADU). Applications will be accepted now through Nov. 30, 2024.

About the Pilot Backyard Builders Program:

As part of the Fiscal Year 2024 Adopted Budget, the City Council approved Mayor Richardson’s “Opportunity Beach” budget recommendation for the dedication of one-time General Fund funding of $200,000 to pilot the Backyard Builders Program to help address the affordable housing shortage in Long Beach. Facilitated by the City’s Community Development Department and the Long Beach Housing Authority, the Program will provide up to 10 eligible homeowners with a 0% interest, 30-year loan up to $250,000 to design and build an ADU on their property.

In addition, the Program will provide ADU project management assistance at no cost to participating homeowners to guide them through the design, permitting, construction and lease-up processes. In exchange, homeowners must agree to rent their ADU at an affordable rate to an individual or family who meets the program income limits. 

First priority will be given to homeowners who commit to renting their ADUs to households with a housing voucher issued by the Long Beach Housing Authority for a minimum of five years. Second priority, should funding be available, will be given to homeowners interested in renting their units to low-income households, defined as those earning 80 percent or less of the area median income, for a minimum of seven years. Loan payments are not required during the ADU construction term, and no interest will accrue on the loan as long as the ADU is rented at an affordable rate to an income-qualified tenant. After the affordability period, interest rates will increase to 3%.

To be eligible for the Program, applicants must own and occupy a single-family home or a multi-family home with up to four units located in Long Beach. Applicants must also meet the Program’s requirements to qualify for loan financing, including minimum credit scores and limits on debt-to-income and property loan-to-value ratios.

Interested applicants are strongly encouraged to attend one of the upcoming informational meetings before applying to learn more about the Program. All meetings will present the same information. Interpretation services will be provided in Spanish, and other languages by request via the registration form. Meeting registration is strongly encouraged. To learn more about the Backyard Builders Program and to apply, as well as to register for one of the informational meetings, visit longbeach.gov/ADUloan. 

For more information about other City ADU programs, including how to start the planning or permitting process, visit longbeach.gov/adus.