Eureka council approves application for ADU program funding to kick‑start 'Eureka Builds It'

Eureka — The City Council voted to authorize staff to submit a state Notice of Funding Availability (NOFA) application to secure matching funds for a new accessory dwelling unit (ADU) program, part of a broader effort to increase housing options in a built‑out city.

Director Millar said the item is “simply to be able to submit an application. The NOFA was announced in July and the window or the application window closes on September 17.” He told council the request is for matching funds of roughly $500,000 to launch a local program, with staff planning to release a local NOFA in January 2025 if the city is successful.

Millar and staff described allocation priorities the program would use if funded: portions of the money would be reserved for households at 30% of area median income (AMI), another share for 60% AMI and the remainder for the 80–120% AMI tiers. "30% below area median income ... I believe that they would receive 25% of the housing trust fund allocation of a million dollars," Millar said when outlining income tiers and funding buckets.

Council members expressed support for enabling homeowners to create ADUs and for using the funding to help local people create and lease units. Several council members noted the program’s potential to help renters and people at very low income levels if dedicated funding and policies ensure affordability.

Motion to approve staff recommendation was moved and seconded and carried with a unanimous yes vote. Staff said they will return with program design details and a potential local NOFA in early 2025 if the state award is received.

Next steps: staff will submit the NOFA application by the announced deadline and, if awarded, will bring back the proposed local NOFA design, targeting AMI tiers and program rules.