ADU Financing White Paper

Author: Los Angeles Project REACh ADU Financing Subcommittee

Project REACh (Roundtable for Economic Access and Change) brings together leaders from banking, business, technology, and national civil rights organizations to reduce specific barriers that prevent full, equal, and fair participation in the nation’s economy. Recently, Los Angeles REACh’s Homeownership Workgroup (HWG) identified homeownership as one of its key focus areas through a series of meetings.

Due to the limited affordable housing inventory in Los Angeles, the HWG looked to other models to expand homeownership and housing opportunities, such as Accessory Dwelling Units (ADUs). However, barriers to financing emerged as one of the foremost challenges to taking ADUs to scale, particularly for lower-income households. This ADU financing white paper reflects the Subcommittee’s analysis and recommendations for advancing financing strategies.

*The views and positions expressed in the document reflect the individual perspectives of ADU Subcommittee participants and may or may not reflect the views of their respective employers.