Updated October 2026
Orange County’s Affordable ADU Loan Program has ended. The Orange County Housing Finance Trust board voted unanimously on May 21, 2025 to discontinue it, and it is not taking applications. This page stays up as a record of how it worked.
The short version
- Status: discontinued May 21, 2025 (OCHFT).
- The Trust cited the long-term risk and cost of managing mortgage loans directly with homeowners.
- The Trust says it is not aware of any alternative government-funded ADU financing program to recommend.
- The program offered up to $100,000 toward building a new rental ADU, in exchange for renting to lower-income tenants.
How it worked
The loan was open to owners building a new ADU at their primary residence in a participating Trust member city. Existing ADUs did not qualify. It allowed one loan per property, with combined loan-to-value capped at 90%. The loan could cover construction and soft costs like design, permits, soil tests, impact fees, surveys and energy reports. In return, the owner rented the ADU to a tenant earning under 50% of area median income for 10 years, and principal was forgiven over that period while payments were deferred.
What to do instead
- Finance with savings, a HELOC, a cash-out refinance or a renovation loan.
- Keep the ADU under 750 sf to avoid impact fees.
- Ask your city whether it offers its own ADU incentives or pre-approved plans.
- On a larger lot, compare an ADU with a small-lot split under SB 684 or SB 1123.
How we use it
When a single ADU does not pencil, we look at density instead. Cuckoo Complex in San Diego is a six-unit building shaped by light, air and courtyards. See our multifamily and small-lot subdivision work.
Density shaped by light, air and courtyards.
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
