City of Long Beach Launches Backyard Builders Pilot Program
The Californer/10291283

Long Beach, CA ~ Long Beach, CA - The City of Long Beach has announced the launch of its Backyard Builders Program, a pilot program aimed at increasing the availability of affordable housing in the city. The program will provide comprehensive assistance to homeowners who are interested in creating an accessory dwelling unit (ADU) on their property.

Applications for the Backyard Builders Program are now being accepted and will continue to be accepted until November 30, 2024. The program is part of Mayor Rex Richardson's "Opportunity Beach" budget recommendation, which dedicates $200,000 in one-time General Fund funding to address the affordable housing shortage in Long Beach.

Mayor Richardson expressed his excitement for the program, stating that it shows the city's commitment to providing more affordable housing options and financial flexibility for its residents. He also emphasized that this program supports property owners and sends a message that Long Beach is in favor of building new housing in its backyards.

The Backyard Builders Program will be facilitated by the City's Community Development Department and the Long Beach Housing Authority. It will provide up to 10 eligible homeowners with a 0% interest, 30-year loan of up to $250,000 to design and build an ADU on their property. Additionally, homeowners will receive project management assistance at no cost to guide them through the design, permitting, construction, and lease-up processes.

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In exchange for this assistance, homeowners must agree to rent their ADU at an affordable rate to an individual or family who meets the income limits set by the program. Priority will be given to homeowners who commit to renting their ADUs to households with a housing voucher issued by the Long Beach Housing Authority for a minimum of five years. Second priority will be given to low-income households earning 80% or less of the area median income for a minimum of seven years.

One unique aspect of this program is that loan payments are not required during the construction term of the ADU, and no interest will accrue as long as the unit is rented at an affordable rate to an income-qualified tenant. After the affordability period, interest rates will increase to 3%.

Alison King, Director of Health and Human Services, highlighted the importance of stable housing in preventing homelessness and stated that this program provides a mutually beneficial solution for both homeowners and those in need of affordable housing.

To be eligible for the Backyard Builders Program, applicants must own and occupy a single-family home or a multi-family home with up to four units in Long Beach. They must also meet certain requirements for loan financing, including minimum credit scores and limits on debt-to-income and property loan-to-value ratios.

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Christopher Koontz, Director of the Community Development Department, expressed pride in Long Beach's role as a leader in ADU development in California. He believes that this innovative program will not only make building an ADU more accessible for homeowners but also help generate much-needed affordable housing in the community.

Interested applicants are encouraged to attend one of the upcoming informational meetings before applying. These meetings will provide more details about the program and will be available both virtually and in-person. Interpretation services will be provided in Spanish, with other languages available upon request.

To learn more about the Backyard Builders Program, including how to apply and register for an informational meeting, visit longbeach.gov/backyardbuilders. For information on other ADU programs and how to start the planning or permitting process, visit longbeach.gov/adus.

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