Nonprofits Turn to Accessory Dwelling Units for Affordable Housing

Across the U.S., accessory dwelling units (ADUs) have been proposed as a way to improve housing supply. As these types of projects gain popularity, many nonprofits are also turning to ADUs to meet the needs of their local community members. In a new working paper, the Joint Center For Housing Studies of Harvard University aims to discover how nonprofits are using ADUs, how they are being adapted to serve the needs of different communities, and what challenges organizations are facing in rolling ADUS out as an affordable housing solution.

The rules and regulations governing ADU construction differ widely across the country, which can create barriers to entry for community development organizations and homeowners interested in creating ADUs.

Financing options for ADUs vary, especially based on their use, and require nonprofit organizations to think creatively about how to secure external funding via local and state government grants and private funds, like those from banks. Since there are a diversity of ADU project types, construction and development budgets also vary.

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