Salem residents interested in building Accessory Dwelling Units (ADUs) may apply for ADU Construction and ADU Design Grants.
ADU Construction Grant funds up to 50% or $45,000 of the eligible construction cost to build an ADU, whichever is less. Eligible construction costs include materials to build the ADU, and labor for license contractors. Apply by clicking HERE.
ADU Design Grant funds up to 50% of the eligible cost or $2,500, whichever is less, for ADU plans to be created. Eligible design costs include labor for a licensed architect or contractor to prepare a set of accessory dwelling units plans. Apply by clicking HERE.
To receive a grant, Salem residents must commit to capping the rent of the ADU to the fair market rent limit for Salem, based on bedroom size, as determined by the United States Department of Housing and Urban Development (HUD) for 20 years.
Salem’s ADU ordinance prohibits ADUs from being rented for more than 70% of the fair market rent limit. For more information about building ADUs in Salem, please click HERE.
