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Home / Second Unit ADU Program

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 

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

“Newsecond units can be an important source of affordable housing for the communityand can also provide needed income to homeowners. In addition, when existingunpermitted second units are made code compliant they can provide legal andsafe housing for the people who reside in them, often extended family membersof 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. 

Eachapplication will be scored and ranked based on household data submitted intheir application. The highest-ranking applications will be contactedafter the application window closes.

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

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