DURHAM – The city of Durham is launching a new pilot program to increase affordable housing options.

Accessory Dwelling Units are popular options in many locations across the country where a smaller secondary unit is located on the same lot as the primary home. The new pilot program focuses on encouraging more of these smaller housing options in Durham.

The pilot will use $1.75 million from the Forever Home, Durham program to fund loans to residents interested in building an ADU. The homeowner will be eligible for a loan of up to $80,000 with a 2% fixed interest rate for 30 years.

In return, the homeowner is also committing to renting to tenants who make 80% of the Area Median Income or below for the length of the loan. The full program manual and details on how to apply are located at www.durhamnc.gov.

Building more of these housing options will help increase the housing supply while also not displacing any current residents. This also allows current homeowners to generate rental income. The pilot funding is expected to provide loans for approximately 20 affordable ADUs citywide.

“We are excited to build on the momentum of the city’s longstanding commitment to affordable housing by working with residents and our partner Coram Houses to bring more affordable housing options to our community,” Housing & Neighborhood Services Director Sarah Viñas said. “This is an example of how Durham is partnering with community to develop innovative solutions to our housing challenges.”

Homeowners can work directly with Coram Houses as the general contractor or use a licensed contractor who also meets the program requirements.

"At Coram, we begin with a simple question: What can we share? ADUs embody that vision by creating opportunities to share space, resources and community," Coram Houses CEO and Founder Topher Thomas said. “In partnership with the city of Durham, this pilot program will expand that vision - pairing care for one another with shared expertise and equitable access to capital. The result will be expanded opportunities for residents to build wealth and long-term affordable housing. It’s a small but meaningful step toward a more equitable Durham."

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