Casita Incentives Pilot Program

Application Closed

Applications will be available in late September.

A young boy sitting in a wheelchair in the kitchen of his casita. Casitas increase affordable housing options and create inclusive living spaces. The Casita Incentive Pilot Program aims to help you in constructing and financing your casita.

To be eligible for incentives to construct a casita, the property must be owner-occupied. Casitas used for short-term rentals (less than 30 days) do not qualify. In addition, either your household income or your renter’s income must meet the program’s requirements. Learn more about how to qualify by reviewing the information below.

Renter

The Casita Incentives Program offers homeowners a no-interest, forgivable loan to build or rehab a casita for use as an affordable housing rental unit.

  • Casitas may not be rented out as a short-term rental (Ex: Airbnb) during affordability period.
  • Renter(s) will be required to provide proof of income and may not exceed the maximum Area Median Income (AMI) of the level they are applying for. Review AMI to confirm your renter(s) meet the required income limits.
  • Homeowner must reside on property as permanent residence.
  • Homeowner must fully fund the new construction or rehab costs of their project. If the loan has been awarded to homeowner, the City will reimburse the homeowner for eligible construction expenses. This is done at the completion of the project. Expenses incurred prior to award are ineligible for reimbursement.

Eligibility Requirements

Category Level 1 Level 2
Maximum AMI of Renter 50% 30%
Maximum Loan Amount $25,000 or half the project cost $35,000 or half the project cost
Affordability Period 5-year forgivable loan 10-year forgivable loan
Minimum Required Homeowner Investment $10,000 $10,000

Homeowner

The Casita Incentives Program provides a no-interest forgivable loan to homeowner with income of 80% AMI or less and looking to build or rehab their existing casita.

  • Casitas may not be rented out as a short-term rental (Ex: Airbnb) during affordability period.
  • Homeowner(s) will be required to provide proof of income and may not exceed the maximum AMI of the level they are applying for. Review AMI to confirm you meet the required income limits.
  • Homeowner must reside on property as permanent residence.
  • Homeowner must fully fund the new construction or rehab costs of their project. If the loan has been awarded to homeowner, the City will reimburse the homeowner for eligible construction expenses. This is done at the completion of the project. Expenses incurred prior to award are ineligible for reimbursement.

Eligibility Requirements

Category Level 1 Level 2
Maximum AMI of Homeowner 80% 50%
Maximum Loan Amount $25,000 or half the project cost $35,000 or half the project cost
Affordability Period 5-year forgivable loan 10-year forgivable loan
Minimum Required Homeowner Investment $10,000 $10,000

Contact

Contact Form

Related Links

Area Median Income (AMI)

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