LDC collaborated with the County of Napa to revise the County’s Accessory Dwelling Unit (ADU) Loan Program. The County requested LDC’s help responding to the opportunity provided by loosened state land use restrictions, which have led to increased production of ADUs statewide, but with the financial benefits mostly accruing to more affluent homeowners who have access to the capital needed to develop ADUs on their property. Working with the County to balance affordable housing development and fiscal goals, LDC helped devise a loan program that offers forgivable loans in exchange for building an affordable ADU.

Low-income homeowners who received a loan for building an income-restricted ADU were offered a higher loan, expanding the reach of the program and advancing equity goals.