Tucson’s Housing and Community Department (HCD) has launched a pilot program to help low-income homeowners improve their Accessory Dwelling Units (ADU) or structures that can be converted into an ADU on owner-occupied properties.

To qualify for the program, Tucson residents must have a gross annual income equal to or less than 80% of the Area Median Income.

For example, a family of three must have an income limit of $49,450, a family of four has a limit of $54,900, and a limit of $59,300 for a family of five.

The property must be located within the City limits and the homeowner must live on the property.

The ADU must be permitted or in the city of Tucson’s ADU Amnesty Program, and mortgage and property tax payments must be in good standing.

The ADU assistance program is only available to households with $20,000 or less in liquid assets. Those who exceed the asset limit are not eligible for assistance.

The program will not fund new construction or total renovation, but will support rehabilitation projects to improve an existing ADU. These improvements may include installment or replacement of sewer, water, gas, and electrical lines, upgrades in the kitchen and bathroom, and other site improvements.

ADUs, also known as “casitas,” are separate structures where individuals can live. They are becoming increasingly popular as an affordable housing option, particularly in cities with high housing costs.

The pilot program aims to expand affordable housing options in Tucson and benefit eligible homeowners who want to improve their properties and provide housing for others.

HCD hopes that the program will be successful and will be able to continue providing assistance to low-income homeowners in the future.