THE PILOT PROGRAM IS CURRENTLY CLOSED TO NEW APPLICANTS. 

The WeHo ADU Pilot Program is an affordable housing initiative to incentivize single and multifamily property owners to create an affordable rental unit on their property. This program offers “comprehensive assistance” for financing, designing, permitting, and constructing a new Accessory Dwelling Unit (ADU) in the City of West Hollywood.

ELIGIBILITY

• Single-family property owners must demonstrate owner occupancy for the past (1) year as their primary         residence (owner occupancy is not required for multifamily ADU applicants)
• Must rent ADU to a Section 8 voucher holder for a minimum seven (7) continuous years.

GENERAL LOAN TERMS AND CONDITIONS
New ADU Construction Loan ($150,000 max.)

• 3-Year loan with 1% simple interest.
• Deferred payments for 3 years, including principal and interest, with two 1-year extension options.
• Loan must be refinanced prior to the end of deferred payment period.
• Failure to refinance will result in 1% loan conversion fee of principal and interest.
• Loan will convert to 30-year conventional with compounding interest rate of 1% plus the prime rate at time of conversion.
• Must rent ADU unit to a Section 8 tenant for 7 continuous year term through an executed landlord agreement with the Lender (City).
• A request for notice will be recorded on property title until the 7-year commitment is met.
• The ADU will be deed restricted for a low-income tenant who rents for an amount that is affordable to households where the family’s gross annual income is below 50% of the Area Median Income (AMI) in Los Angeles County.
• Tax adjustments or penalty implications may apply. Borrower is responsible and should contact their tax service professional or CPA. Should any additional grant funding be awarded the borrower shall receive and acknowledge form 1099-G of potential income tax consequences.
• Failure to meet the terms and conditions of the loan will result in repayment, in whole or in part, of all principal and interest.
• A penalty of $25,000 to property owner for ADU unoccupied by a Section 8 tenant for more than 90 days.

Loan Total $150,000 Maximum
•  Includes Pre-development Costs for ADU Site Analysis and Project Design
•  Includes Development Costs for ADU Permitting and Construction
•  Excludes any costs associated with renovations or upgrades to the existing main house/structures on the site.

ADU INFORMATION SESSIONS

• 2 information sessions were held on July 27, 2022.  If you were unable to attend one of the sessions you can also watch a recording of the session here: https://www.youtube.com/watch?v=XndtCJL-OAc

APPLICATION PROCESS

• Application Release date: AUGUST 1, 2022
• Application Due date: SEPTEMBER 30, 2022 @ 5PM PST -- submit application digitally to                ADUPilot@weho.org

APPLICATION: WeHo ADU Pilot Application

GUIDEBOOK: WeHo ADU Pilot Program Guidebook

SELECTION PROCESS AND AWARD

• Application Award date: NOVEMBER 1, 2022
• Loan Documentation Due date: NOVEMBER 20, 2022 @ 5PM PST

PROGRAM KICK-OFF

• Virtual Meeting: FEBRUARY 2023

* All dates listed are subject to change at the discretion of the City. Date changes will be
posted on the website: https://www.weho.org/ADUpilot

PRESS + COVERAGE

• Brookings: Can income-restricted ADUs expand the affordable housing stock in Los Angeles