PASADENA, Calif.—The City of Pasadena’s housing department is launching a new affordable housing initiative that incentivizes homeowners to create an affordable rental unit on their property. The Second Unit ADU program provides very low-cost loans to homeowners who want to create a new ADU (the unit will need to be leased out to Section 8 tenants for the first seven years) and those who want to bring an existing unpermitted ADU up to code (no Section 8 requirement). “New second...