Long Beach to Open ADU Loan Applications in November

Eligible homeowners can apply for $250,000 in low-interest, deferred-payment loans to build new backyard living spaces.

Updated on Oct. 26, 2026 in Home Renovation

Screen-print poster illustration of a small backyard studio model, evoking a community-oriented approach to residential housing expansion in Long Beach. — The city of Long Beach will accept applications in November for its Backyard Builders loan program, providing low-interest capital for accessory dwelling units. AI Illustration. Upload story photo >

Live Poll

Should your local government provide low-interest loans for residents to build backyard accessory housing units?

The city of Long Beach will open applications for the second round of its Backyard Builders loan program from November 1 to November 31, 2026. This initiative provides low-interest financing to help lower-income homeowners construct accessory dwelling units on their properties.

Why it matters

The program aims to combat housing overcrowding by offering affordable capital for flexible living spaces, allowing families to build property equity through small-scale housing development. By removing barriers like complex design and management, the city hopes to increase the local housing supply for residents.

Homeowners can borrow up to $250,000 at a 2% interest rate for 30 years, with payments deferred until the unit is sold or the term expires. Funded units must be single-story and under 500 square feet, and they cannot be used for short-term rentals.

The players

California Department of Housing and Community Development

A state agency responsible for overseeing housing policies and providing grants to expand affordable inventory.

Los Angeles County Affordable Housing Solutions Agency

A regional entity that provides financial and technical resources to facilitate local housing stability projects.

The details

The program simplifies the construction process by providing applicants with pre-approved building plans, designs, and professional project management assistance. If the volume of applications exceeds the available 16 loans, the city will use a randomized lottery system to select participants for the funding.

November 1 to November 31, 2026: Application window for the second round of loans.
November 5, 2026: Community information session via Zoom.

The Home Front

This loan initiative builds on a wider trend of cities incentivizing accessory dwelling units to address regional housing density needs. It specifically helps lower-income homeowners navigate the high upfront costs that historically hindered small-scale development.

Eligible homeowners should review the program requirements to ensure their property can accommodate a single-story unit under 500 square feet. Interested residents should verify their eligibility and attend the Zoom information session on November 5, 2026, to understand the application requirements.

The takeaway

The city of Long Beach is lowering the financial barrier to entry for adding a small-scale, permanent accessory dwelling unit to your property. If you are a lower-income homeowner, mark your calendar for the November 2026 application window to access these deferred-payment loans.