FIGURE 1
Monthly costs of ADU ownership can be lowered through various subsidies
Note: Construction costs of $150,000 are used to reflect terms of several ADU pilot programs. Scenario 1 assumes a fixed-rate home equity loan, fully amortizing over 10 years. Interest rates taken from Freddie Mac mortgage survey. The upfront grant in Scenarios 2 and 4 models a direct grant similar to CalHFA’s predevelopment grant. Taxes and insurance can vary widely depending on the value of the property and homeowner’s duration in current location.
