ADU Financial Assistance Program
Planning to build an ADU? Get assistance with planning, permitting, and construction costs for your ADU from the Boston Home Center.
About the Program
The Boston Home Center offers staff support and financial assistance to income-eligible homeowners of 1-3 unit homes who are planning to build an ADU in their home or on their property. Income-eligible homeowners may apply to the ADU Financial Assistance Program to receive both a grant and a loan to help with costs to design, permit, and build their ADU. If eligible, homeowners may also apply for additional financing with one of our partner lenders.
The program is intended for financially prepared owner-occupants who have assembled an ADU design and building team and plan to soon file for a building permit. Applications to the ADU Financial Assistance Program will only be accepted if all required documents and participation prerequisites to join the program have been met.
Looking for application materials in another language? Find all the necessary documents in your language here.
In order to receive a loan from a partner lender, you must first apply for and receive funding from the Boston Home Center.
The ADU Financial Assistance Program is composed of different grant and loan options. Homeowners may choose to participate in all three, if they meet the appropriate eligibility requirements.
Types of Financial Assistance
Types of Financial Assistance
ADU TECHNICAL ASSISTANCE GRANT
The Boston Home Center offers staff support and financial assistance to aid your ADU project.
Enrolled Participants receive: Grant of up to $7,500 to offset soft costs accrued while designing and permitting their project.
Homeowners are paired with a Boston Home Center Construction Specialist who provides insight on costs and code requirements for building an ADU
Fact sheet also available in: Spanish (Español), Portuguese (Português), Chinese (中文), French (Français), Cape Verdean Creole (Kriolu Kabuverdianu), Haitian Creole (Kreyòl ayisyen), Somali (Soomaali), Russian (русский), Vietnamese (Tiếng Việt), and Arabic (عربى).
ADU BANK LOAN
The Boston Home Center partnered with local banks to offer increased financial assistance for homeowners building an Accessory Dwelling Unit (ADU) on their property.
In order to participate, eligible homeowners must first apply and be enrolled for the Boston Home Center ADU Loan.
After enrollment homeowners may apply for additional financing with a participating lender of their choice.
The Boston Home Center's ADU Loan and ADU Bank Loan must be used toward construction of an ADU.
Fact sheet also available in: Spanish (Español), Portuguese (Português), Chinese (中/文), French (Français), Cape Verdean Creole (Kriolu Kabuverdianu), Haitian Creole (Kreyòl ayisyen), Somali (Soomaali), Russian (русский), Vietnamese (Tiếng Việt), and Arabic (عربى)
BOSTON HOME CENTER ADU LOAN
The ADU Loan offers gap funding of up to $50,000 to help income-eligible homeowners with the costs of constructing an ADU.
The loan is 0% interest and deferred, only becoming due for repayment if the owner sells, transfers ownership of the property, or undertakes a cash-out refinance of the home.
No owner match requirements for household incomes below 120% of Area Median Income (AMI).
Households at 120 and 135% of AMI must provide a 1:1 match to their City-funded ADU loan with personal funds or with a bank loan.
A Boston Home Center Construction Specialist will be assigned to monitor construction progress throughout the homeowner’s project.
Fact sheet also available in: Spanish (Español), Portuguese (Português), Chinese (中/文), French (Français), Cape Verdean Creole (Kriolu Kabuverdianu), Haitian Creole (Kreyòl ayisyen), Somali (Soomaali), Russian (русский), Vietnamese (Tiếng Việt), and Arabic (عربى).
How to Qualify
The ADU Financial Assistance Program is intended for financially prepared owner-occupants who are ready to begin ADU design, permitting, and construction. Please read the following qualification requirements prior to filling out an application.
- You must own and occupy a one, two, or three-unit home in the City of Boston and plan to build your ADU on that same property.
- Your annual household income must meet all income eligibility requirements
- You must have less than $100,000 in financial assets, excluding the assets being used towards construction of the ADU, home equity, retirement funds, and college savings plans in liquid assets.
- You must be current on all City of Boston and housing-related payments, including property taxes, water, mortgage, and insurance.
- You must have attended both the ADU Design Workshop and the ADU Budget Workshop within the past 3 months before applying.
- You must be working with a licensed architect to develop your ADU plans.
- You cannot have received City home repair financial assistance within the past ten years, except for de-leading funds.
- You must apply with at least two quotes from licensed and insured contractors capturing the full scope and cost of your ADU project.
HOW TO APPLY
How to applyMake sure you understand all of the program eligibility requirements, including income and asset limits, and ensure you will qualify.
Start thinking about the design and cost of your ADU project. Shop for construction quotes.
Two contractor quotes are required in your application submission. $275/sf is a good rule of thumb to scope a preliminary cost of your build.
Example: 800sf x $275 = $220,000 USD
Any contractor quote below $100,000 will be scrutinized by the Boston Home Center Construction Monitoring Team.
You must have attended both the ADU Design Workshop and the ADU Budget Workshop within the past 3 months before applying for the ADU Financial Assistance Program. Both workshops are free, open to the public, and designed to help you navigate the process of designing and financing your ADU project.
The ADU Design Workshop allows you to get feedback from city architects, Inspectional Services Department, and Boston Fire Department. Their feedback will help you identify or address problems with your ADU design prior to submitting for a building permit. You must attend this workshop and receive feedback on a set of draft plans prepared by a licensed architect.
The ADU Budget Workshop is meant to help you understand and account for the time and costs associated with building your ADU.
Insight from this session will allow you to better complete the ADU Budget Narrative required for your application.
An architect will develop ADU plans appropriate to your needs and the code requirements of your neighborhood.
A contractor scopes, prices and builds your project. They may also request all necessary permits required for building your ADU.
Working with a contractor familiar with this process is recommended.
Before you can enroll in the program, draft or permitted plans from your architect and two contractor quotes are required in your application submission.
You may apply once you:
- Have confirmed your eligibility to the program.
- Have attended the ADU Design Workshop and received feedback on a set of draft plans prepared by a licensed architect
- Have attended the ADU Budget Workshop
- Have completed your ADU Budget Narrative
- Have your draft or permitted ADU plans in hand
- Have two quotes from contractors in hand
Only once all of the above are completed are you eligible to apply to the ADU Financial Assistance Program.
In order to be approved for the grant reimbursement or the loan, your building plans must be stamped and approved by the Inspectional Services Department.
Once you are ready, please submit your application here: APPLY NOW
If you have any questions please contact: adu@boston.gov
VIRTUAL OFFICE HOURS
The Boston Home Center offers biweekly virtual office hours to support homeowners with their applications to the ADU Financial Assistance Program. You may book a private 15 minute session with BHC staff who can answer questions about program processes or application requirements. Please attend your 15 minute session prepared with the questions or materials you would like to discuss related to your ADU Financial Assistance Program Application.
ADU WORKSHOPS
The ADU Design Workshop is an opportunity for Boston homeowners who are interested in building an ADU in their home or on their property to get feedback from City staff before they submit a building permit application to the Inspectional Services Department.
The ADU Budget Workshop provides a space for homeowners to consider the full scope of building an ADU in your property- from projecting an accurate cost estimate to identifying how to finance your ADU project.
Participation in both the Design and Budget workshops is required to enroll in the ADU Financial Assistance Program. However, attendance to either workshop is highly encouraged if you are interested in building an ADU on your property. It can be a helpful step in determining the feasibility of building an ADU on your property or helpful step in preparing your final plans for your building permit application. At the meetings, you can get input on your ADU plans from city staff, including staff from the Mayor's Office of Housing, the Planning Department, and the Inspectional Services Department, with expertise in design and code requirements. They can help answer specific questions related to your project. You may also attend to listen to other project proposals or to learn more about the program.
The ADU Design Workshop is an opportunity for Boston homeowners who are interested in building an ADU in their home or on their property to get feedback from City staff before they submit a building permit application to the Inspectional Services Department.
The workshop is optional, but highly encouraged. It can be a helpful step in determining feasibility for building an ADU on your property or for preparing your final plans for your building permit application. At the meeting, you can get input on your ADU plan from city staff, including staff from the Mayor's Office of Housing, the Planning Department, and the Inspectional Services Department, with expertise in design and code requirements. They can help answer specific questions related to your project. You may also attend to listen to other project proposal or to learn more about the program.
Workshops are held virtually via Google Meet on the first Wednesday and Thursday of each month, from 4-5:30 p.m. Register by clicking on an event below.
UPCOMING ADU WORKSHOPS
ADU Financial Assistance Program: FAQ
Frequently Asked Questions- You must meet the following eligibility requirements in order to participate. You must own and occupy a one, two, or three-unit home in the City of Boston and plan to build your ADU on that same property.
- Your annual household income must meet all income eligibility requirements
- You must have less than $100,000 in financial assets, excluding the assets being used towards construction of the ADU, home equity, retirement funds, and college savings plans in liquid assets.
- You must be current on all City of Boston and housing-related payments, including property taxes, water, mortgage, and insurance.
- You must have attended both the ADU Design Workshop and the ADU Budget Workshop within the past 3 months before applying.
- You must be working with a licensed architect to develop your ADU plans. Submission of draft or permitted plans
- You cannot have received City home repair financial assistance within the past ten years, except for de-leading funds.
It depends what type of financial assistance you're applying for.
You should apply for the ADU Technical Assistance Grant when you're early on in the process of planning your ADU. If eligible for the program, you'll be paired with staff that can provide important information on the code and zoning requirements for building an ADU.
You should apply for the ADU Loan once you have begun working with your architect and/or general contractor and have a solid understanding of the design and scope, including estimated cost, of your project.
Please refer to the ADU Financial Assistance Program Application Checklist to view the full list of required documents.
Costs incurred during the design and permitting of an ADU project are eligible for reimbursement, up to a maximum combined amount of $7,500. Common costs that homeowners may submit for reimbursement are:
- A deposit or retainer fee for a general contractor
- Fees associated with architecture/land surveyor/engineer services
- Permit fees associated with a building permit application with the Inspectional Services Department
- Zoning Board of Appeal fees
Homeowners participating in the ADU Technical Assistance Grant program will receive the reimbursement grant after they have 1) received an approved building permit to build their ADU from the Inspectional Services Department and 2) have enrolled in the Boston Home Center’s ADU Loan Program.
The ADU Loan may only be used for construction costs. It cannot be used to reimburse the homeowner for costs associated with designing or permitting your ADU. Typically, the loan is paid in installments directly to the contractor responsible for the construction work. Payments are made after inspections by the Boston Home Center's Construction Monitoring Unit, in order to determine that all work is going smoothly. We require that the homeowner pay their portion of the construction costs first, and then use the City's ADU Loan as gap financing to finish the project.
- You must own and occupy a one, two, or three-unit home in the City of Boston and plan to build your ADU on that same property.
- Your annual household income must meet all income eligibility requirements
- You must have less than $100,000 in financial assets, excluding the assets being used towards construction of the ADU, home equity, retirement funds, and college savings plans in liquid assets.
- You must be current on all City of Boston and housing-related payments, including property taxes, water, mortgage, and insurance.
- You must have attended both the ADU Design Workshop and the ADU Budget Workshop within the past 3 months before applying.
- You must be working with a licensed architect to develop your ADU plans. Submission of draft or permitted plans
- You cannot have received City home repair financial assistance within the past ten years, except for de-leading funds.
Next Steps
Once you have planned your ADU, your next step is to secure the necessary building permits.
Research what type of building permits you will need.
Learn more about the construction process.
Discover more on how to prepare your ADU for move-in.
You may apply to both loan programs.
Application documents available in Boston's top 11 languages.
