Backyard Builders ADU Loan Program Accepting Applications from Nov. 1 to 30

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PRESS RELEASE

Above: Mayor Rex Richardson poses with Backyard Builders Loan Program recipient Jonathan, his wife, Alina Lopez, and their daughter during the Backyard Builders Round 2 Press Conference.

Long Beach, CA - The City of Long Beach will open applications Nov. 1 for the second round of its Backyard Builders loan program, which has been expanded, and will provide up to $250,000 in financing to help lower-income homeowners design and build an Accessory Dwelling Unit (ADU) on their property.

"The Backyard Builders program is a prime example of innovative housing solutions here in Long Beach, which has been a statewide leader in ADU production" Mayor Rex Richardson said. "Round 2 of this program broadens the benefits of ADUs to include lower-income families who can use the space in so many ways - to relieve overcrowding, generate income or perhaps provide a safe place for a grandparent to live close to family."

The second round of Backyard Builders will provide income-qualified Long Beach homeowners financing of up to $250,000 to build an ADU. These 30-year loans are offered with a below-market interest rate of 2%. Payments will be deferred for the life of the loan, meaning most borrowers will not have to make any payments until the 30-year term is over or until the property is sold or transferred to another owner.

The Round 2 application period runs from Nov. 1 to 30 and will likely draw a large number of applicants. The program is expected to finance the construction of at least 16 ADUs, up from 10 in the first round of Backyard Builders funding that launched in fall 2024. The Long Beach Community Development Department's Housing & Neighborhood Services Bureau will enter all eligible applicants in a randomized lottery to determine loan recipients.

Three community information sessions are scheduled to offer community members more information about household income limits and other program criteria:

• Oct. 27: 5:30 to 6:30 p.m. at Michelle Obama Library Community Room, 5870 Atlantic Ave. (RSVP)
• Nov. 5: 6:30 to 7:30 p.m. online via Zoom (RSVP for link to virtual meeting)
• Nov. 14: 10 to 11 a.m. at Cesar Chavez Park Community Room, 401 Golden Ave. (RSVP)

To be eligible, applicants must own and occupy a single-family home in the designated program area and meet the State of California's definition of lower-income. For 2026, the maximum annual gross household income limits are:

1 person: $93,300

2 people: $106,600

3 people: $119,950

4 people: $133,250

5 people: $143,900

6 people: $154,600

7 people: $165,250

Other eligibility factors include applicants' debt, payment of mortgage and property tax, and maintenance of a homeowners insurance policy. Funded ADUs must be less than 500 square feet, single-story and at ground level. Full program requirements, guidelines and loan details will be available on the program webpage.

This new round of funding comes from a $4.8 million award from the California Department of Housing and Community Development (HCD) through its CalHome Program. The Los Angeles County Affordable Housing Solutions Agency provided an additional $315,000 to provide design and project management assistance to participants. The recipient of the funding is the Long Beach Community Investment Company (LBCIC), the nonprofit arm of the City formed to help address housing availability and affordability in Long Beach. Backyard Builders loans will be administered by the LBCIC.

"This program is an excellent reminder that expanding housing options in Long Beach can come in so many forms," said Christopher Koontz, director of the City's Community Development Department. "We're working to address the housing crisis in so many ways, but Backyard Builders is a particularly exciting path toward smart, flexible and fundamentally livable homes for our residents."

Round 2 builds on the success of the City's Backyard Builders Round 1, which was open to homeowners without income restrictions. Homeowners in the first round were required to rent their ADU at an affordable rate to low-income households. Round 2 is specifically designed to support lower-income homeowners, who will be encouraged, but not required, to rent their ADUs to tenants using housing vouchers from the City's Housing Authority. This flexibility allows the ADU to be used to generate additional income or to house extended family, among other uses. If the ADU is rented, it must be leased for a minimum of 30 days; short-term rentals are not allowed. Cash-out refinancing against the loan is prohibited.

Homeowners who have already begun the ADU design/construction process may apply for the program at any point prior to issuance of a Certificate of Occupancy. The City, however, will not reimburse homeowners for costs incurred before the Backyard Builders loan is executed.

For more information on the second round of Backyard Builders funding, visit longbeach.gov/aduloan.

About the City of Long Beach
Long Beach is nestled along the Southern California coast and home to approximately 466,000 people. As an award-winning full-service charter city, Long Beach offers the amenities of a metropolitan city while maintaining a strong sense of individual and diverse neighborhoods, culture, and community. With a bustling downtown and over six miles of scenic beaches, Long Beach is a renowned tourist and business destination and home to the iconic Queen Mary, nationally recognized Aquarium of the Pacific and Long Beach Airport, the award-winning Long Beach Convention and Entertainment Center and world-class Port of Long Beach.

For more information about the City of Long Beach, visit longbeach.gov/. Follow us on social to keep up with the latest news: Facebook, X, Instagram and YouTube. For more information about Community Development visit longbeach.gov/lbcd and follow @longbeachbuilds on Facebook, X and Instagram.

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