Farmworker Housing ADU Forgivable Loan Template
This template provides materials for a jurisdiction to develop a forgivable loan program for the construction of Accessory Dwelling Units (ADUs). State legislation has made ADUs a category of housing that is exempt from many requirements and provides for ministerial approval, making them a cost-effective method to increase housing supply. A forgivable loan to cover construction costs can be an incentive for homeowners to construct an additional unit. If sponsored by a County, these loans can encourage ADU production in both the rural unincorporated county and in incorporated cities. Jurisdictions can set terms of the loan so that the loan is only forgiven if the ADU is rented out to a specific population (i.e., farmworkers) or at an affordable rent (i.e., tenants who make at or below a set income restriction). This resource includes template documents to create a forgivable loan program for ADUs and highlight opportunities to apply this solution for farmworkers.
View the template.