Durham is booming. As our population surges toward a projected 318,460 residents by 2029, the pressure on our housing supply has reached a critical point. We are currently facing a massive housing deficit of nearly 33,000 units, leaving many longtime residents, teachers, and healthcare workers struggling to find attainable places to live.
While there is no “silver bullet” to solve the housing crisis, the City of Durham is introducing new tools to the shed. One of the most promising is the ADU Pilot Program.
What is an ADU?
Under Durham’s Unified Development Ordinance (UDO), an Accessory Dwelling Unit (ADU)—often called a “backyard cottage,” “granny flat,” or “basement apartment”—is a secondary dwelling unit located on the same lot as a primary house. These units provide independent living facilities and can be attached to the main home or built as a separate structure in the backyard.
Durham’s ADU Pilot Program
Historically, building an ADU has been a luxury reserved for those with significant upfront capital. The ADU Pilot Program aims to change that. By utilizing $1.75 million from the “Forever Home, Durham” fund, the City is partnering with Coram Houses, LLC to help homeowners become part of the housing solution.
Key Program Features:
- Low-Interest Financing: Eligible homeowners can access construction loans of up to $80,000 at a 2% fixed interest rate.
- Technical Support: Homeowners can choose to work with Coram Houses as their general contractor or use their own licensed professional.
- A “Win-Win” for Durham: The program allows homeowners to generate rental income while providing a stable, affordable home for a neighbor.
Commitment to Long-Term Affordability
This program isn’t just about building more units; it’s about building the right units. In exchange for the low-interest loan, homeowners agree to a 30-year affordability covenant. This means the ADU must be rented to tenants earning 80% of the Area Median Income (AMI) or below at rent levels that comply with program limits.
To ensure this tool benefits all of Durham, the program uses a stratified lottery for applications. This system prioritizes:
- Lower-income homeowners.
- Properties in historically redlined neighborhoods.
- Projects involving certain civic uses or duplex ADUs.
How to Get Involved
The pilot program aims to produce approximately 20 affordable units across the city. To qualify, applicants must own and occupy their property within city limits, have a permit-ready site, and maintain a minimum credit score of 580.
Ready to learn more? Applications are accepted on a rolling basis. For full details on eligibility and the application process, visit the City of Durham’s ADU Pilot Program page or contact the Housing & Neighborhood Services Department at 919-560-4570.