Accessory Dwelling Unit Loan Program (ADULP)

Accessory dwelling units (ADUs) are small residential living spaces that are located on the same lot as another home. ADUs can be inside an existing home (e.g., converting a basement into an apartment), attached to a primary residence as an addition, or completely detached (e.g., a cottage or converted garage in your backyard).

• Loans of up to $250,000 for detached ADUs, and up to $150,000 for attached ADUs.
• Loans combine an amortizing, interest-bearing loan with additional zero-interest, deferred-repayment financing.
• Funds must be used to cover the costs of construction of an ADU.

To be eligible for the Accessory Dwelling Unit Loan Program, homeowners must

• Own a single-family home, which they occupy as their primary residence
• Meet income guidelines, which vary by location
• Have necessary plans, permits and other pre-development materials in hand and be ready to move forward with construction
• Projects started prior to closing are not eligible for the ADULP

Additional eligibility requirements apply.

ADU Incentive Program

The Massachusetts Housing Partnership’s ADU Incentive Program helps homeowners complete a feasibility study to evaluate and advance ADU projects on their properties.

Learn about the ADU Incentive Program⁠

ADU Resources

Learn more about ADUs, view related incentives and regulations, and access frequently asked questions and other resources from the Executive Office of Housing and Livable Communities.

View ADU Resources⁠

ADU Design Challenge Showcase

Explore free designs from the Commonwealth’s ADU Design Challenge.

View ADU Designs⁠