Nonprofit Accessory Dwelling Unit (ADU) Programs as Affordable Housing Strategies

Nonprofit housing organizations are using accessory dwelling units (ADUs) to meet the demand for affordable housing in the United States. ADUs increase opportunities for multifamily housing and are reported to stimulate affordable rental rates, though restrictive zoning laws have impeded their widespread development in some municipalities. This paper considers how nonprofit organizations within and outside of the NeighborWorks America network are working to create the financial and cultural infrastructure to support ADUs in both suburban and urban neighborhoods. It also explores challenges that community development corporations (CDCs) have experienced in developing ADU programs. In doing so, the paper analyzes how nonprofit organizations are using ADUs to provide affordable housing, as well as how ADUs are being adapted to serve different populations and needs.