Pasadena Second Unit ADU Program

Interested in additional monthly income by adding a rental unit to your property?

The Pasadena Second Unit ADU Program is a new affordable housing initiative that incentivizes homeowners to create an affordable rental unit on their property. The program offers homeowners “Comprehensive Assistance” for financing, designing, permitting, and constructing a new Accessory Dwelling Unit (ADU) in the City of Pasadena.  Specifically the program provides homeowners financial assistance to build an ADU through new construction or garage conversion.  Assistance is also available to rehabilitate and bring up to code an existing unpermitted “granny flat” or illegal garage conversion.

The window to submit an application for the 2nd Unit ADU program is closed. All eligible applications received by the Housing Department during the application window will be evaluated. Applicants can expect to receive a response by November 19, 2020.


Option #1
New ADU Construction Loan
  • Up to $150,000 maximum
  • 3-Year loan with 1% simple interest
  • Deferred payments for 3 years
  • Must be refinanced prior to end of deferred payment period
Option #2
Existing Unpermitted ADU Loan
  • Up to $75,000 maximum
  • 20-Year loan with 1% simple interest
  • Deferred payments for the first 5 years
  • Household income must be under 80% area median income (AMI)
#  of  Persons
in the Household
1 2 3 4 5 6 7 8
Maximum Annual Household Income 
80% AMI
$63,100 $72,100 $81,100 $90,100 $97,350 $104,550 $111,750 $118,950
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