Durham Rolls Dice On Backyard Tiny Homes In $1.75 Million Loan Pilot
Durham is putting $1.75 million on the table for a new pilot program that helps homeowners build tiny rental units, known as accessory dwelling units (ADUs), on their lots and keep those units affordable for three decades. The effort teams the city’s Housing & Neighborhood Services department with local builder Coram Houses to offer low-interest construction loans to qualifying owners. City officials say they want to create about 20 ADUs and focus opportunities on long-time residents and neighborhoods that have seen years of disinvestment.
Pilot Details and Loan Terms
According to the City of Durham, the ADU Loan Pilot will use $1.75 million from the Forever Home fund to provide construction loans of up to $80,000 at a 2% fixed rate, amortized over 30 years, with a 30-year affordability covenant on each unit. The city plans to fund projects in cohorts of five and expects the pilot to generate up to 20 ADUs…..