Incentivizing Affordable Housing
Facilitated by the City’s Community Development Department and the Long Beach Housing Authority, the program aims to simplify the process of creating affordable rental units by providing assistance with financing, design, construction, and permitting. Homeowners who receive the loan are required to rent their ADU at an affordable rate to qualified tenants, with priority given to those utilizing housing vouchers.
“This new Backyard Builders Program shows our unwavering commitment to providing our community with more affordable housing options and financial flexibility,” said Mayor Rex Richardson. “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.”
A Win-Win Solution
“There are thousands of individuals and families who are on the Housing Voucher waiting list, and we know stable housing is often the difference between merely surviving and thriving,” said Health and Human Services Director Alison King. “This mutually beneficial program allows homeowners to build equity while providing the upstream solutions we need to prevent homelessness.”
This initiative benefits both homeowners and the community. Homeowners can build equity and generate rental income while addressing the pressing need for affordable housing. We have added Long Beach’s Backyard Builder’s Program to the programs in SoCal incentivizing affordable ADUs.
Commitment to Affordability
Loan repayments are deferred during construction, and no interest accrues as long as the ADU remains affordably rented. Mayor Rex Richardson emphasizes the city’s dedication to expanding affordable housing options and supporting property owners in creating new housing units.
The City will provide a low-interest, 30-year loan up to $250,000 to develop the ADU, or the actual cost of the ADU, whichever is less. Loan payments are not required during the construction term and no interest will accrue on the loan as long as the ADU is occupied by a qualified tenant.
If you want to explore more options, check this ADU financing guide.
Program Details and Eligibility
The Backyard Builders Program is funded through the city’s 2024 budget and facilitated by the Long Beach Community Development Department and Housing Authority. To be eligible, applicants must own and occupy a single-family or small multi-family home (up to four units) within Long Beach.
Who is eligible for the loan?
Long Beach property owners who reside on the property where the proposed ADU will be built and commit to renting the unit at an affordable rent for a minimum of five years. Properties with four existing units or less are eligible.
Who can live in the ADU?
The property owner stays in control during the entire rental period by setting their own tenant screening criteria and selecting their new backyard neighbor (following fair housing regulations).
This pilot program prioritizes property owners who agree to rent their ADU to someone with a Long Beach housing voucher. Second priority, should funding be available, will be given to property owners interested in renting their units to low income individuals, defined as those earning 80% or less of the area median income, in which case the tenant may be a family member, caregiver, or other related person.
The Housing Authority of the City Long Beach will determine the approved rent for each ADU that is rented to a tenant with a housing voucher in accordance with federal guidelines. This includes multiple factors, including federal Payment Standards, tenant affordability, utility allowances, and comparisons with similar units’ rental rates in the area.
Application and Information
The application window is open until November 30th. Informational meetings are available both online and in person if you’re interested in learning more.
Interested applicants are strongly encouraged to attend one of the below upcoming informational meetings before applying to learn more about the Program. Both virtual and in-person options will be available. The meeting schedule will be as follows:
- Wednesday, Oct. 9 from 6 to 7:30 p.m. (Virtual Zoom Webinar)
- Saturday, Oct. 19 from 10 to 11:30 a.m. at Cesar Chavez Park (401 Golden Ave.)
- Thursday, Oct. 24 from 6 to 7:30 p.m. at Long Beach Energy Resources Auditorium (2400 E. Spring St.)
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/backyardbuilders.
For more information about the Backyard Builders Pilot Program, click here. For additional information about building an ADU in Long Beach independent of the program, click here.
A Step Towards a Brighter Future
We at YDS Architects applaud Long Beach’s bold move to make ADUs more accessible and affordable. This program is a testament to the city’s commitment to addressing the housing crisis and fostering inclusive communities. It’s an example of how innovative policies can empower homeowners. We wholeheartedly support initiatives like the Backyard Builders Program that remove financial barriers and streamline the ADU construction process. As architects dedicated to creating sustainable and equitable housing solutions, we’re calling on other cities and counties to follow suit.
If you’re a Long Beach homeowner intrigued by the possibilities of an ADU, we invite you to explore this program further. ADU Plans and Permits are the most common ADU financing requirements. Have your ADU Plans and Permits ready when applying for financing.
Let’s discuss your project and how we can help you bring your vision to life. Contact us today for a free consultation!
