The Long Beach city government has decided to become financiers of development. Instead of homeowners going to a bank or mortgage company to build ADU’s, the city will loan the money. Oh, you will have to rent to low income families. The ADU was supposed to be so grandma had a place to live. Now government kicks out grandma and says low income only. This will stop a lot of people from building ADU’s—and those that do will create a different environment for the community.
“With hundreds of accessory dwelling units being permitted in Long Beach annually the city is looking to a new loan program that would provide up to $250,000 to homeowners to build a new unit as long as they rent it to a low-income household.
The Affordable ADU Loan Program is expected to launch later this year and could provide up to 10 households with a $250,000 loan to build an ADU in their backyards. The 30-year loans would be interest-free during the time that an approved tenant is living in the unit, according to a memo published by the city this week.
Eligible properties include single-family homes and multi-unit lots with four or fewer units before the construction of the ADU.
At a time, cities have no money, where does this money come from? Oh, the low income people will probably have Section 8 money—which means the taxpayers will finance the ADU’s and pay the rent for the ADU’s—the taxpayers lose TWICE.
Long Beach ADU loan program will give up to $250K to owners who rent to low-income tenants
The pilot program will provide up to $250,000 toward construction costs for new ADUs rented to people with housing vouchers and other low-income households for a minimum of five to seven years.
Jason Ruiz, Long Beach Watchdog, 8/29/24 https://lbwatchdog.com/long-beach-adu-loan-program-will-give-up-to-250k-to-owners-who-rent-to-low-income-tenants/?action=subscribe&success=true
With hundreds of accessory dwelling units being permitted in Long Beach annually the city is looking to a new loan program that would provide up to $250,000 to homeowners to build a new unit as long as they rent it to a low-income household.
The Affordable ADU Loan Program is expected to launch later this year and could provide up to 10 households with a $250,000 loan to build an ADU in their backyards. The 30-year loans would be interest-free during the time that an approved tenant is living in the unit, according to a memo published by the city this week.
Eligible properties include single-family homes and multi-unit lots with four or fewer units before the construction of the ADU.
To qualify for the program, a homeowner has to agree to rent the ADU to a person with a housing voucher issued through the city’s Housing Authority or to a person making less than 80% of the area’s median income. That’s approximately $88,800 for a two-person household in Los Angeles County, according to 2024 state income limits.
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However, priority will be given to people who agree to accept project-based vouchers, which could allow higher rents to be charged depending on what part of the city the ADU is located in, the size and layout and the condition of the unit.
For instance, the range for allowable rents to be charged to a low-income household ranges from $1,031 for a studio to $1,326 for a two-bedroom ADU.
But a voucher holder moving into an ADU in the 90815 ZIP code could be charged between $2,266 and $3,245 for the same sized unit. The city has used vouchers, which are funded by federal funds and other outside sources, to keep people housed and to bring formerly unhoused people off the streets.
Unlike the typical voucher that is issued to a particular person, project-based vouchers are tied to a specific unit and can be used across multiple tenants.
Program participants will require a minimum five-year commitment to house a voucher holder or a seven-year commitment to house a low-income household.
Property owners who have already started the process of building an ADU can still apply for the loans when they become available, however, any costs already paid by the owner won’t be refunded through the loan, according to the project website.
Long Beach has become a leader in ADU production over the past few years and the city has leaned into that as a way to try and meet its housing production goals. Last year, it launched a pre-approved ADU program that allows homeowners to shop for designs that have met city specifications, something that can save them time, money and the headache of having to design an ADU from scratch.
The city currently has seven pre-approved designs on its website.
Here come the ghettos!