PLHA Funded New ADU Construction Loan

Note: All funds for this loan product are currently obligated. If you are interested in being notified if more funds become available, please email housing@townoftruckee.gov.

This low interest loan product is for construction of ADUs or JADUs that will be used as long-term rentals for income-qualified local employees over a period of 7 or 10 years. This loan product may be layered with the new ADU creation forgivable loan. 

Following is a summary of requirements for the new ADU or JADU construction loan:

• Property on which the ADU or JADU will be constructed must be the owner’s full time residence and must be located within the town limits of Truckee.
• Requires that rent be charged at a rate that someone making low or moderate income can afford (no more than 30% of tenant’s monthly income). See options below:
  • Loan option 1: Rent to tenant(s) making 60% area median income or less (7-year deed restriction required). Loan term: 1% annual (simple) for 20 years.
  • Loan option 2: Rent to tenant(s) making 120% area median income or less (10-year deed restriction required) Loan term: 2% annual (simple) for 10 years.
• Income qualification of tenants based on number of members of the household and their corresponding area median income (AMI) levels. Affordable rent set on a case by case basis according to household income.
• Annual monitoring of deed restriction compliance for 7 or 10 years, depending on loan term.
• Initial loan payment is due the first of each month once a qualified tenant moves in.
• This loan is funded by funds from the Permanent Local Housing Allocation (PLHA) Program

See the full New Construction ADU or JADU Loan Program Guidelines here (PDF).

Click here to download the New ADU Loan application form (PDF).