Whether you want rental income, a home for a family member or more value from your property, an ADU is a practical and sustainable solution. For property owners in Long Beach, there’s an exciting opportunity to make it more affordable: the City of Long Beach Backyard Builders Program.

The program makes ADU construction easier and more affordable for Long Beach residents by providing financial assistance, project management and more. Here’s how it works, what it offers, and how we can help along the way.

What is the Backyard Builders Program?

It’s a City of Long Beach initiative that helps property owners finance, design and build ADUs. The program offers up to $250,000 in low-interest loans for ADU construction, plus city-appointed project managers who help with planning, permitting and building.

• Low-interest loans of up to $250,000, with no payments required during construction.
• Project management from city-appointed project managers for a smoother build.
• Affordability requirements: the ADU must be rented at an affordable rate for five to seven years, depending on the tenant.

A closer look at the loan terms

1. Zero interest during construction and the affordability period. No payments are due during construction, and no interest accrues while the ADU is occupied by a qualified tenant.
2. Fixed 3% interest afterward. After the affordability term, the rate rises to a modest 3% while you repay the loan over the remaining term.
3. Affordability period flexibility. The period is five years for housing voucher holders or seven years for other low-income tenants. After that, you can rent at market rates while continuing to repay the loan.

The program’s focus on affordability means ADUs built through it contribute to the city’s housing goals, while homeowners earn rental income with minimal upfront cost.

Who qualifies?

• Owner-occupied properties: you must live full-time on the property where the ADU will be built.
• Property size: four units or fewer before the ADU is built.
• Financial eligibility: a credit score of at least 650 and a debt-to-income ratio of 48% or less, including the future ADU loan payment.

Properties must also be current on mortgage and tax payments and adequately insured. The loan can cover every part of ADU construction, from architectural services to contractor fees.

The long-term benefits of an ADU

• Flexible living arrangements for aging parents, adult children or other relatives — space and privacy while staying close.
• Rental income from long-term tenants, including stable rental subsidies when renting to housing voucher recipients.
• Increased property value from a second, self-contained home on the lot.

How we help you navigate the program

• End-to-end project management from design concepts through construction, on time and on budget.
• Customizable ADU designs, from studios to two- and three-bedroom homes — see our ADU configurations.
• Financing assistance: we review your options, including this program, and help you prepare the paperwork.
• Local expertise in Long Beach ADU regulations and long-standing relationships with local permitting agencies.

Start your ADU journey

If you own property in Long Beach and have been considering an ADU, this program — paired with an experienced design-build team — removes much of the usual financial and logistical friction. Contact us to talk through how it could work for your property.