Revere Affordable Housing Trust staff presented terms and conditions for a proposed forgivable loan to help homeowners create accessory dwelling units (ADUs) and rent them at an affordable rate for at least five years. Staff recommended waiting to vote on the program until the trust has the senior repairs application live, but requested feedback on the program design.

The staff presentation said the loan would be capped at $10,000 per ADU project, with funding for up to five projects. Forgiveness would occur over five years at 20% per year so long as the unit remains in compliance with the affordability guidelines, and the homeowner maintains owner occupancy throughout the five‑year term.

“It would be a maximum loan of $10,000 per ADU project, and we'll fund up to 5, of these projects,” the presenter said. Staff said borrowers must comply with building and zoning codes, hold necessary permits, and be current on taxes and assessments. Rent would be certified annually by the city as not exceeding the affordable rent limit tied to HUD formulas; staff said that for the current year that certification translates to a ballpark of about $2,000 a month, but emphasized the city will calculate and notify owners of the precise allowable rent each year.

Staff described typical local ADU configurations as internal units — basements, in‑law apartments or small additions — rather than detached backyard units. The program would require owner‑occupancy during the loan term; the presenter noted state law passed last year does not require owner‑occupancy to build an ADU, but the trust’s loan program would impose owner‑occupancy as a condition of the subsidy.

Staff proposed that if an owner sells the property, stops residing there, or rents above the allowable rate, the unforgiven portion of the loan becomes immediately repayable. The presenter said staff’s preference is to get the senior repairs program live first, then return at the next meeting to request formal approval for the ADU loan and to prepare an online application.

No final vote was taken on the ADU loan at this meeting.