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How to apply for an Additional Dwelling Unit loan

Last updated:
Step
1

Learn how the program works

We offer loans through our Additional Dwelling Unit Loan Program. The loans are interest-free and offer gap funding to eligible Boston homeowners who wish to create an ADU in their homes in the City of Boston.  

  • You might qualify to receive a loan up to $50,000 for an ADU project to owners of single-to three family homes.
  • We base the amount of your loan on the estimated cost of the project.
  • The loan has no monthly payments and does not become due until the owner sells, transfers ownership, or undertakes a cash-out refinance of the home.

For more program information, we created a:

Step
2

GET YOUR INFO TOGETHER

  • Check to make sure you are eligible for the ADU program.
  • You'll need to get an ADU permit from the Inspectional Services Department (ISD) before you can receive an ADU loan.
  • Prepare a description of your ADU.
  • Take pictures of current space.
  • Get a cost estimate.
  • Create preliminary designs and drawings of your ADU.

Please complete the application for ADU Loan Program (available in English, Español, Português, 中文, Français, Kriolu Kabuverdianu, Kreyòl ayisyen, Soomaali, русский, Tiếng Việt, orعربى).

Step
3

MAIL US YOUR APPLICATION

You can send your completed application package to:

The Boston Home Center / ADU
26 Central Ave
Boston, MA 02136

Step
4

FINISH THE PROJECT AND PAY YOUR LOANS

You will be contacted by a program manager who will assist you through the process.

We'll give you a commitment letter and schedule a loan closing, if we approve your loan. Once you have closed on the loan, you can sign an agreement with your contractor and they can get a building permit.

You’ll need to give us a final invoice from your contractor and a copy of your building permit. We’ll set up a final walkthrough to make sure all the work was done.

You have to pay us back based on the terms of the loan.

Need to Know:

The Additional Dwelling Unit Loan Program is part of the ADU Program. Learn more about the complete ADU program.

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