Durham is launching a new Accessory Dwelling Unit pilot program backed by $1.75M from Forever Home, Durham. The city expects to fund about 20 small rental units on single-family lots. Homeowners can get loans of up to $80,000 at a 2% fixed rate for 30 years.
ABC11 reported that Durham's median home sale price has risen by about $100,000 over the past five years, adding to affordability pressure across the city.
- Homeowners who take the loan must rent the ADU to tenants earning no more than 80% of area median income for the full loan term.
- Coram Houses is partnering with the city on the pilot, and homeowners can either work with Coram as the general contractor or use another licensed contractor that meets the program rules.
- Coram founder Topher Thomas told ABC11 the company designed a model it hopes can build a 300-square-foot unit for $80,000, because that loan amount usually is not enough to build a house.
- ABC11 also reported that tenants will be selected through a lottery system, with higher priority for some lower-income applicants, people living in formerly redlined neighborhoods, and people who have lived in Durham for 10 years.
The city said the pilot is meant to increase housing supply without displacing current residents while giving homeowners a way to generate rental income. Even at full scale, city funding would cover only about 20 units citywide.
What's next: Applications are open now through the city's full program manual and application page.