Pasadena Second Unit ADU Program

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

The Pasadena Second Unit ADU Program is an affordable housing initiative that incentivizes homeowners to create an affordable rental unit on their property through an Accessory Dwelling Unit (ADU) loan.

The program offers Pasadena homeowners “Comprehensive Assistance” for financing, designing, permitting, and constructing a new ADU in the City of Pasadena.  Specifically the program provides homeowners financial assistance to build an ADU through new construction, garage conversion, or bring up to code an existing unpermitted “granny flat” or illegal garage conversion.

Borrowers may be eligible for grant through the California Housing Finance Agency (CalHFA) to cover pre-construction costs.  If approved, the grant is automatically credited to the ADU loan with the City of Pasadena.  CalHFA also has a list of approved financial lenders to apply for a loan to build ADU at ADU Grant Program | CalHFA.

The window to submit an application for the 2nd Unit ADU program is closed. The application window is tentatively scheduled to open back up in summer 2023.