Updated October 2026
Long Beach’s Backyard Builders program lends lower-income homeowners up to $250,000 to build an ADU. The 2024 round has closed. The city announced a second round on April 15, 2026, with different terms.
The short version
- Loan of up to $250,000, at 2% interest, on a 30-year term, with payments deferred for the life of the loan (Round 2 terms).
- You must own the home and live in it full time.
- Household income must be below the state’s “low income” limit for Los Angeles County, for example $133,250 for a household of four in 2026.
- The property must be in one of the program’s designated areas, with priority for Opportunity Zones, Justice40 areas and state High or Higher Resource areas.
- A city project manager helps through design, permitting and construction at no cost.
What changed from 2024
The first round, launched in September 2024, offered zero-interest loans of up to $250,000. Owners had to rent the ADU at an affordable rent for at least five years, with priority for Long Beach housing-voucher holders. Applications closed November 30, 2024, and the round funded 10 ADUs. Round 2 aims for at least 16, uses a lottery if it is oversubscribed, sets a 2% rate, and targets lower-income owners in specific areas. Read the current guidelines before you plan around the old terms.
How to apply
- Check the program page at longbeach.gov/lbcd/hn/aduloan for the application window and join the interest list.
- Contact: Long Beach Community Development, CD-ADULoan@longbeach.gov, 562.570.7073.
- Confirm your lot can fit the unit before you apply. Setbacks, utilities and access decide what fits.
How we use it
A loan pays for one unit. Some lots can do more. At the Foothill Residence, a 2-bed unit with a garage sits under the main home on one lot. If your lot is larger, compare an ADU with a small-lot subdivision first.
Have a lot in mind?
Send us the address and we’ll tell you what it can hold. Book a free consultation → · Follow @ydsarch on Instagram
