Grant Programs for ADU’s

 
 

Auburn, Maine

Accessory Dwelling Unit Development (ADUD) Program


Started in 2022

Eligibility

The property must be an owner-occupied, year-round residential property. Property owners must be 120% or below of Area Median Income, and not delinquent on taxes or utilities. 

Terms

  • ADUs  may be no more than 800 sf, and rented to tenants earning under 80% of area median income for 5 years.

  • Rents cannot exceed the lower of HUD’s published Fair Market Rent (FMR), or 30% of tenant monthly income (including utilities) for a period of 5 years.

  • Max loan assistance is lesser of $30k or 15% of actual construction costs

  • Fully amortized loan @ 2% APR for 1-year, deferred payments. If all conditions are met the loan will be converted to a grant after 5 years.

Funding Source

  • $250,000 Community Solutions Grant from the Maine State Housing Authority to help homeowners

  • $225,000 of Federal American Rescue Plan Act funding

  • $25,000 HOME funds

  • $25,000 city funded staff hours

Contact

Glen E. Holmes, Director of Business & Community Development, Auburn, Maine

207.333.6601 ext. 1159 gholmes@auburnmaine.gov

Program Guidelines

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