City Council Approves Casita Incentive Pilot Program

Published on August 22, 2025

Applications expected to open in late September.

SAN ANTONIO (August 22, 2025) – This week, San Antonio City Council approved the Casita Incentive Pilot Program, designed to lower barriers to building accessory dwelling units, promote affordability, and increase housing access across the city. This program is made possible by the 2022–2027 Affordable Housing Bond, which uses creative strategies to increase the supply of affordable housing in San Antonio.

In fall 2024, the City launched Casita Permit-Ready Plans. These professionally designed, permit-ready designs eliminate the need to start from scratch and provide a streamlined, more cost-effective path to construction.

“Casitas, also known as ADUs, offer many benefits to our community including creating affordable housing options and helping our loved ones age in place,” said Veronica Garcia, Director of the Neighborhood and Housing Services Department. “This program represents the City’s commitment to creative solutions for increasing affordable housing throughout our city.”

The Casita Incentive Pilot Program offers financial support for property owners who either earn 80% or less of the area median income (AMI) or have a renter earning 50% or less of the AMI. People often think of their income in terms of hourly, weekly, or annual pay. When governments talk about what is ''affordable'' for a person or family, they often use the term ''AMI'' which can be calculated here. 

As part of the Casita Incentives Pilot Program, qualifying property owners and renters may be eligible for two tiers of construction incentives:

• Level I – Up to $25,000 in construction incentives with a 5-year forgivable loan for:
• • Renters earning 50% AMI or less
  • Property owners earning 80% AMI or less
• Level II – Up to $35,000 in construction incentives with a 10-year forgivable loan for:
• • Renters earning 30% AMI or less
  • Property owners earning 50% AMI or less

Both levels include financial assistance to cover design fees for Casita Permit-Ready Plans for eligible property owners earning 80% AMI or less. Casitas are also eligible for a waiver of most City permit fees.

The Casita Incentive Pilot Program is expected to open for applications in late September. Learn more at SA.gov/ADU.