Oakland Wants to Help Convert Illegal Secondary Dwellings to Legal ADUs

Oakland is launching a brand new low-interest loan program to help convert unpermitted accessory dwelling to legal units.

The Accessory Dweling Unit Loan Program will provide financing and technical assistance to low-income homeowners to convert an existing unpermitted secondary unit into a legal Accessory Dwelling Unit or Junior Accessory Dwelling Unit, city officials said.

Accessory Dwelling Units (ADUs) are attached or detached accessory dwellings that are accessory to primary Residential Facilities located on the same lot and provide complete independent facilities for living, sleeping, eating, cooking, and sanitation.

The program is designed to help ensure units that were developed outside of the required permitting process are safe, legal and continue to provide flexible housing options for tenants and family members, officials said.

Participants can receive a deferred payment loan of up to $100,000 and guidance with the design, bidding, permitting and construction process.

To be eligible, a property must be owner-occupied and a single-family residence that is in an Oakland “Opportunity Zone” in West Oakland along the Interstate Highway 880 corridor. Some properties in East Oakland will also be eligible.

To qualify, household income must be at or below 80% of the area median for Alameda County, which currently is $87,700 for a two-person household and $109,000 for a four-person household.

The program aims to find and approve funding for up to 25 projects by February 2023 for construction through Spring 2024. Submit your application by December 1, 2022, for priority review.

Learn more about Oakland’s Accessory Dwelling Unit Loan Program (ADULP).

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