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Housing authority to issue RFQ for preapproved ADU plans; defers broad cash incentives pending market response
Summary
The authority agreed to begin with an RFQ for preapproved ADU plans (staff proposed four plans) and to phase incentives after assessing market interest; a draft budget example proposed $85,000 for the RFQ and $150,000 for a voucher pilot, leaving ~$100,000 for an ADU incentive pilot.
Staff recommended issuing an RFQ to secure preapproved ADU plans and suggested several incentive options — paying permit fees, offering sliding-scale cash grants tied to a deed restriction (recommended target 55% AMI), or selling plans to recoup costs and offering them free to deed-restricted builders.
"If we did an RFQ for ADUs with a max of $85,000 and dedicated $150,000 to our voucher pilot, we would then have $100,000 for an ADU incentive pilot," staff explained while presenting draft FY2026 allocations. Staff described examples from other jurisdictions (Boise, Summit County Colorado) where sliding-scale incentives ranged from $25,000 to $60,000 depending on unit type and conversion status.
Board members favored starting with the RFQ to generate plans and market interest, then phasing incentives based on demand; they recommended the RFQ include modular-focused plans and options to improve energy efficiency. Staff was directed to finalize RFQ language, pursue outreach to modular vendors and report back with a refined budget and implementation timeline.
