The ADU Assistance Loan Program provides financial support to help homeowners build Accessory Dwelling Units (ADUs) by covering essential soft costs. This initiative promotes affordable housing and supports low- to moderate-income residents.

The program offers up to $10,000 in a deferred-payment, no-interest loan to help homeowners cover soft costs for building an Accessory Dwelling Unit (ADU). There are no monthly payments, and the loan may be forgiven over five years if certain conditions are met. Borrowers must maintain owner-occupancy, rent the ADU to a low-income household, and comply with program rules. Repayment may be triggered by property sale, lease, or violations. The ADU must remain affordable for at least five years.

FAQ’s

Click HERE to access Application

Application Process Summary

To apply, submit a complete application package including:

• Completed application form
• Photo IDs for all adults (18+)
• Last 3 years of signed federal tax returns
• Last 3 months of bank and asset statements
• Letter of intent from lender or proof of personal funds
• Grant Deed showing property ownership
• Proof of owner occupancy (e.g., utility bills, tax statement)
• Preliminary ADU cost estimate signed by a licensed contractor
• Signed Fair Lending-ECOA Notice

Incomplete applications will not be accepted.

Once received, program staff will:

• Review materials for eligibility
• Submit for administrative review
• Applicant notified of approval or denial

For additional information and questions please contact housing@cityoflancasterca.gov.

Pre-Approved Plan Elevations

Poppy

1 bedroom/1 bath
350 sf (+70 sf porch)
Height: 11 feet 9 inches (Max 16’ allowed)

Juniper

1 bedroom/1 bath
602 sf (+73 sf porch)
Height: 11 feet 9 inches (Max 16’ allowed)

Goldenbrush

2 bedrooms/2 baths
799 sf (+76 sf porch)
Height: 12 feet 4 inches (Max 16’ allowed)

Primrose

2 bedrooms/2 baths
840 sf (+85 sf porch)
Height: 14 feet (Max 16’ allowed)