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NAPA, CA (March 17, 2023) – A first-of-its-kind program in the country, the Napa County Affordable Accessory Dwelling Unit Forgivable Loan Program has officially launched and is ready for interested homeowners to apply at countyofnapa.org/aaduloan. The AADU Forgivable Loan Program helps to address the housing affordability gap by providing forgivable construction loans for new accessory dwelling units (ADU) in exchange for commitments to rent those properties to households earning up to 80 percent of the area median income for a period of at least five years. Depending on the number of rooms and design features of the ADU, the loan amount ranges from $45,000 (studio) to $105,000 (two bedrooms).
“This is a huge step in addressing the housing affordability crisis facing Napa County and the state,” said Board Chair Belia Ramos. “This program is the culmination of a seven-year effort of collaborative public-private partnerships. We’re excited to see where this program goes. This is just the beginning.”
To start the application process, interested homeowners can submit an application online at countyofnapa.org/aaduloan. The application process is three-steps and designed to move at the pace of the project, with homeowners expressing interest, then gaining access to a no-cost feasibility consultation as well as online video classes, and finally a commitment to loan funding as their project moves from idea to design to permitting and construction.
At the Board of Supervisors’ direction in April 2022, Napa County staff began working with consultants at LeSar Development, the Napa Sonoma ADU Center and key stakeholders in the county to develop the Affordable ADU Forgivable Loan Program. The Board voted to adopt the underwriting guidelines establishing the program in November of 2022, and staff have since then been working to finalize the application, loan documents, and related contracts.
Applications are accepted on a rolling basis while funding is available.
The program will be assessed to determine necessary updates, including a change in baseline incentives and tenant/landlord requirements. Future plans for the program include creating an application to match landlords to potential tenants who qualify.
For questions, please visit countyofnapa.org/aaduloan.