The City of Charlotte is offering $80,000 in interest-free loans to help homeowners build accessory dwelling units (ADUs) on their property. The newly launched Queen City ADU program aims to expand affordable housing while letting homeowners earn income from their property. Here’s how it works:
What’s an ADU?
An accessory dwelling unit is a permanent building added to a single-family home or duplex. It can be attached, like a garage, or detached. Think: Tiny house or mother-in-law suites with a bedroom, bathroom, living area, and a complete kitchen.
What’s not an ADU?
Campers, RVs, outhouses, or buildings without a separate entrance, kitchen, and bathroom are not considered ADUs.
Program details
- Only one ADU is allowed per lot and must be under the same ownership as the primary home.
- For city financing, owners must rent their ADUs to people earning no more than 80% of the area median income.
- Rent must be capped at the Fair Market Rent for a studio at 70% AMI — $1,099 according to City of Charlotte’s zoning administration.
- The loan is forgiven at a rate of $10,000 per year of affordability, up to eight years.
The city launched a tool to check ADU eligibility. If your home qualifies, design your addition, submit for permitting, and get started on building. Keep in mind: Building an ADU can range $90,000 to more than $250,000, depending on the design, materials, and size, but using pre-designed plans can help lower cost. Ready to build? Applications are open through Friday, Oct. 31.
