City of Long Beach Launches Backyard Builders Pilot Program

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PRESS RELEASE

Long Beach, CA - The City of Long Beach is now accepting applications for its Backyard Builders Program (Program). The goal of the pilot program is to incentivize Long Beach homeowners to create an affordable rental unit on their property by providing them with comprehensive assistance for financing, designing, permitting and constructing a new accessory dwelling unit (ADU). Applications will be accepted now through Nov. 30, 2024.

"This new Backyard Builders Program shows our unwavering commitment to providing our community with more affordable housing options and financial flexibility," said Mayor Rex Richardson. "This program will also directly support Long Beach property owners and sends the message that we are in favor of building new housing - quite literally - in our backyards."

As part of the Fiscal Year 2024 Adopted Budget, the City Council approved Mayor Richardson's "Opportunity Beach" budget recommendation for the dedication of one-time General Fund funding of $200,000 to pilot the Backyard Builders Program to help address the affordable housing shortage in Long Beach. Facilitated by the City's Community Development Department and the Long Beach Housing Authority, the Program will provide up to 10 eligible homeowners with a 0% interest, 30-year loan up to $250,000 to design and build an ADU on their property. In addition, the Program will provide ADU project management assistance at no cost to participating homeowners to guide them through the design, permitting, construction and lease-up processes. In exchange, homeowners must agree to rent their ADU at an affordable rate to an individual or family who meets the program income limits.

First priority will be given to homeowners who commit to renting their ADUs to households with a housing voucher issued by the Long Beach Housing Authority for a minimum of five years. Second priority, should funding be available, will be given to homeowners interested in renting their units to low-income households, defined as those earning 80 percent or less of the area median income, for a minimum of seven years. Loan payments are not required during the ADU construction term, and no interest will accrue on the loan as long as the ADU is rented at an affordable rate to an income-qualified tenant. After the affordability period, interest rates will increase to 3%.

"There are thousands of individuals and families who are on the Housing Voucher waiting list, and we know stable housing is often the difference between merely surviving and thriving," said Health and Human Services Director Alison King. "This mutually beneficial program allows homeowners to build equity while providing the upstream solutions we need to prevent homelessness."

To be eligible for the Program, applicants must own and occupy a single-family home or a multi-family home with up to four units located in Long Beach. Applicants must also meet the Program's requirements to qualify for loan financing, including minimum credit scores and limits on debt-to-income and property loan-to-value ratios.

"Long Beach is at the forefront of ADU development in California. We're proud to introduce this innovative program that will not only make building an ADU more accessible for homeowners but also help generate the affordable housing our community needs," said Christopher Koontz, Director of the Community Development Department.

All applications will be reviewed after the application period ends; applying early does not impact applicant selection. Please see the Program Guidelines on the website for applicant selection criteria.

Interested applicants are strongly encouraged to attend one of the below upcoming informational meetings before applying to learn more about the Program. Both virtual and in-person options will be available. The meeting schedule will be as follows:

• Wednesday, Oct. 9 from 6 to 7:30 p.m. (Virtual Zoom Webinar)
• Saturday, Oct. 19 from 10 to 11:30 a.m. at Cesar Chavez Park (401 Golden Ave.)
• Thursday, Oct. 24 from 6 to 7:30 p.m. at Long Beach Energy Resources Auditorium (2400 E. Spring St.)

All meetings will present the same information. Interpretation services will be provided in Spanish, and other languages by request via the registration form. Meeting registration is strongly encouraged. To learn more about the Backyard Builders Program and to apply, as well as to register for one of the informational meetings, visit longbeach.gov/backyardbuilders.

For more information about other ADU programs, including how to start the planning or permitting process, visit longbeach.gov/adus.

About the City of Long Beach
About the City of Long Beach Long Beach is nestled along the Southern California coast and home to approximately 466,000 people. As an award-winning full-service charter city, Long Beach offers the amenities of a metropolitan city while maintaining a strong sense of individual and diverse neighborhoods, culture and community. With a bustling downtown and over six miles of scenic beaches, Long Beach is a renowned tourist and business destination and home to the iconic Queen Mary, nationally recognized Aquarium of the Pacific and Long Beach Airport, award-winning Long Beach Convention and Entertainment Center and world-class Port of Long Beach.

For more information about the City of Long Beach, visit longbeach.gov/. Follow us on social to keep up with the latest news: Facebook, X, Instagram and YouTube. For more information about the Community Development Department, visit longbeach.gov/lbcd and like Facebook and follow on X and Instagram.

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