City launches 'Eureka Builds It' ADU financing program to spur accessory dwelling construction
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Summary
Staff introduced 'Eureka Builds It,' a phased ADU assistance and financing program that will offer site analysis, a preapproved list of design professionals, a contractor checklist, and financing options (low‑rate loans and possible principal forgiveness) to help homeowners build ADUs. An RFQ for design professionals was planned for mid‑March.
City staff outlined a new program, "Eureka Builds It," intended to lower barriers for homeowners to build accessory dwelling units (ADUs) through a coordinated package of site analysis, design assistance, permitting help and financing.
Special Projects Manager Riley Topolewski described a four‑phase program: Phase 1 (site analysis and mortgage preapproval), Phase 2 (design and permitting using a preapproved list of design professionals), Phase 3 (construction with a contractor checklist and periodic inspections), and Phase 4 (permanent financing with roll‑over/refi options and potential HUD‑based subsidies or principal forgiveness for eligible households).
Topolewski said the finance team will pursue a mix of funding sources (local housing trust funds, PLHA, CDBG, CalHome and other grants) and seek local lending partners for permanent financing; the RFQ for design professionals was tentatively scheduled to be released March 16. The program aims to expand housing supply by making ADU construction more accessible and financially feasible for homeowners.
Next steps: Staff will issue the RFQ, finalize contractor checklists and flesh out the refinancing/subsidy details; council members asked staff to coordinate with local banks and construction networks to maximize participation.