The City of Boston has partnered with five local banks to launch a groundbreaking zero-interest loan program aimed at helping homeowners add accessory dwelling units (ADUs) to their properties. This initiative is part of Boston's ongoing efforts to address housing shortages and support residents in creating additional living spaces.
A Step Forward in Addressing Housing Needs
ADUs, often referred to as in-law apartments or granny flats, provide versatile housing solutions. These units can generate rental income, offer housing for family members, and contribute to the city’s overall housing supply. To encourage ADU construction, the new loan product offers financial relief to homeowners, particularly those with low to moderate incomes, who may have faced barriers to financing such projects.
Key Features of the Loan Program
The loan program is offered through partnerships with Leader Bank, Dedham Savings, South Shore Bank, Needham Bank, and The Cooperative Bank of Boston. The program includes:
- Zero-Interest Loans: Eligible homeowners can access up to $50,000 in ADU construction loans with no interest and deferred payment options.
- Technical Assistance Grants: Up to $7,500 is available for design, permitting, and other pre-construction costs.
- Dedicated Support: Homeowners will work with a Boston Home Center staff member to guide their project from start to finish.
Who Can Apply?
The program is available to owners of one- to three-unit homes who meet income and asset limits set by the city. While the program opens new opportunities for many, navigating zoning requirements remains a challenge for some.
Zoning Challenges and Future Plans
Currently, Boston’s zoning regulations restrict ADUs to internal modifications, such as converting basements, attics, or subdividing existing homes. Since ADUs became legal in 2019, only about 150 units have been completed due to these limitations.
The city is working on new zoning policies to expand ADU opportunities citywide. Recent updates in Mattapan have made it easier for homeowners there to pursue ADU projects, and broader changes are expected to follow. The Boston Planning Department is developing new zoning language aimed at streamlining the process, though final details have yet to be released.
Why This Matters
This program represents a significant step in addressing Boston's housing challenges while providing financial tools and support for homeowners. ADUs have the potential to increase housing supply in a way that benefits both homeowners and renters, contributing to the vitality of neighborhoods across the city.
Local Impact
With the introduction of zero-interest loans and expanded support, Boston homeowners are better equipped than ever to explore ADU construction. This initiative is expected to have a lasting impact, fostering stronger communities and helping residents make the most of their properties.
For more information about ADU loans and eligibility, visit the City of Boston's official website.
