West Hollywood ADU Pilot Program

A public-private affordable housing initiative designed to incentivize the development of accessory dwelling units (ADUs) for long-term affordable rental housing in West Hollywood. The program combined City financing, design and permitting support, and construction assistance to help property owners create new affordable units while maintaining long-term affordability commitments.

The program provided low-interest construction loans of up to $150,000 per ADU, paired with a seven-year affordability requirement and Section 8 tenancy. A dedicated program consultant supported participants throughout the process, from application and site feasibility through design, permitting, construction, and lease-up.

The pilot ultimately completed two ADUs at a multifamily property, providing a valuable case study in small-scale affordable housing delivery. The project highlighted both the potential of ADUs as an infill housing strategy and the challenges of delivering affordable units in a high-cost urban environment, including construction costs, site constraints, administrative complexity, and extended project timelines.

The program’s findings informed recommendations for future ADU initiatives, emphasizing standardized design and permitting, realistic funding levels, streamlined application processes, participant readiness, and clear project milestones to improve efficiency, predictability, and scalability.