City of Pasadena Announces Second Unit ADU Program

Homeowners who want to create a new ADU and receive a loan from the program will need to lease out to Section 8 tenants the first seven years. – Courtesy photo by Laura Shaw from Pixabay 

The City of Pasadena’s housing department is launching a new affordable housing initiative that incentivizes homeowners to create an affordable rental unit on their property. The Second Unit ADU program provides low-cost loans to homeowners who want to create a new ADU (the unit will need to be leased out to Section 8 tenants for the first seven years) and those who want to bring an existing unpermitted ADU up to code (no Section 8 requirement).

“New second units can be an important source of affordable housing for the community and can also provide needed income to homeowners. In addition, when existing unpermitted second units are made code compliant they can provide legal and safe housing for the people who reside in them, often extended family members of the homeowner who would otherwise not be able to afford to live in Pasadena.” said William Huang, director of housing.

Two informational Zoom webinars are scheduled for Sept. 16 at noon, and Sept. 17 at 5:30 p.m. Applications will be accepted from Thursday, Oct. 1, to Friday, Oct. 30, 2020 only. The application will be available on the Second Unit ADU Program webpage starting Sept. 15. 

Each application will be scored and ranked based on household data submitted in their application. The highest-ranking applications will be contacted after the application window closes.

Eligibility requirements are available in the Second Unit ADU Program Handbook.

September 3, 2020

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