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Long Beach Launches Second Round of ADU Loan Program
By Staff Writer
Published on Mon, Apr 20, 2026
Long Beach homeowners will soon have another opportunity to turn their backyard into something more. The City of Long Beach has announced the return of its Backyard Builders loan program, with a second round of funding set to open in summer 2026—bringing expanded support for residents looking to build Accessory Dwelling Units (ADUs).
To be eligible for the program, applicants must own and occupy a single-family home in the designated program area and meet the State’s definition of lower-income. Eligible applicants can receive up to $250,000 in financing to help cover the costs of designing, permitting and constructing a unit—all with a below-market 2% interest rate and a 30-year term. Even more notably, payments are deferred for the life of the loan, meaning most participants won’t need to make payments unless the property is sold or transferred.
Building on the success of the initial pilot program, this second round will fund at least 16 ADUs—expanding from 10 in the first phase—and continues to offer something that sets the program apart: hands-on support every step of the way. From early design concepts to final construction and even lease-up, homeowners will have access to no-cost project management assistance to help navigate the process with confidence.
The program is open to income-qualified homeowners who live in their single-family home within the designated program area. Additional eligibility factors include financial stability indicators such as mortgage and property tax payments, debt levels and maintaining homeowners insurance. Final income limits for 2026 will be released ahead of the application period.
Beyond creating additional housing, ADUs offer flexible possibilities for homeowners and families alike. They can serve as space for extended family, help reduce overcrowding or provide a new source of rental income. While participants are encouraged to rent to voucher holders through the City’s Housing Authority, it is not required. However, any rental must be for at least 30 days, as short-term rentals are not permitted.
This latest round is supported by a $4.8 million award from the California Department of Housing and Community Development’s CalHome Program, with loans administered by the Long Beach Community Investment Company—the City’s nonprofit partner focused on expanding housing access and affordability.
If demand exceeds available funding, qualified applicants will be selected through a randomized lottery process.
Homeowners who have already started planning or building an ADU may still be eligible to apply, as long as they have not yet received a Certificate of Occupancy. However, costs incurred before the loan is finalized cannot be reimbursed.
Full program details, including application dates and upcoming information sessions, will be announced in the coming months. Residents are encouraged to stay connected and sign up for updates as the Summer 2026 launch approaches.
For more information, visit longbeach.gov/aduloan.
