Accessory Dwelling Unit Improvement Program Launch

Published on May 09, 2023

The Housing and Community Department (HCD) has created a pilot program that will provide financial and technical assistance to low-income homeowners in the City of Tucson to improve an existing Accessory Dwelling Unit (ADU) or accessory structure that can be converted into an ADU on owner-occupied properties.

This program only serves Tucson residents with a gross annual income equal to or less than 80% of the Area Median Income. For example, a family of 3 has an income limit of $49,450, a family of 4 has a limit of $54,900 and a limit of $59,300 for a family of 5. 

The property must be located in the City limits. Homeowner must live on the property. Mortgage and property tax payments must be in good standing and the ADU must be permitted.

The ADU assistance program is only available to households with $20,000 or less in liquid assets. Applicants exceeding the asset limit of $20,000 are ineligible for assistance.

Possible rehabilitation projects to improve an existing ADU include installment/replacement for sewer, water, gas, and electrical lines, upgrades in kitchen and bathroom, and other site improvements. The program is not intended for new construction or for total renovation.

ADUs are sometimes known as "casitas," a separate structure where individuals can live in.