Grants, Loans & Incentives to Help You Fund Your ADU Project

Massachusetts cities and state agencies are making it easier than ever for homeowners to build Accessory Dwelling Units (ADUs). Whether you’re building for a family member or looking to generate rental income, there are several financing programs that can help reduce or eliminate upfront costs.

ADU Link doesn’t offer financing directly — we connect you with verified and trusted programs available in your area.

📍 STATEWIDE PROGRAMS

🧩 Home Modification Loan Program (HMLP) – Statewide

Best for: Homeowners building an ADU to accommodate a person with a disability or an aging family member.

  • Loan Amount: Up to $50,000
  • Interest Rate: 0%
  • Repayment: Deferred — no payments due until you sell or transfer the home
  • Use of Funds: Can be used to build an ADU or modify existing space for accessibility
  • Eligibility: Must be used to benefit someone with a disability or functional limitation

🔗 Learn more

📍 BOSTON PROGRAMS

🏙 Boston Home Center ADU Financial Assistance Program

Best for: 1-3 unit homeowners in Boston looking to add a legal ADU.

  • Technical Assistance Grant: Up to $7,500 to cover design, permitting, and architectural support
  • 0% Interest Construction Loan: Up to $50,000 to cover ADU build-out
  • Loan Terms: Forgivable after 5 years of continued ownership & occupancy
  • Additional Support: Guidance with code compliance, permitting, and lender referrals

🔗 Learn more from the City of Boston

🏦 Boston ADU Bank Pilot Program

In partnership with five local banks, the City of Boston offers zero-interest ADU loans to eligible homeowners.

  • Participating Banks:
    • Leader Bank
    • South Shore Bank
    • Dedham Savings
    • The Cooperative Bank
    • Needham Bank
  • Loan Features:
    • Up to $50,000
    • Zero interest
    • No payments during construction
    • Forgivable after 5 years if used as intended

🔗 Read about the pilot program

📍 OTHER CITIES

We are actively tracking new and emerging city-specific ADU finance programs across the Commonwealth. If you live in a community outside Boston or Cape Cod, contact us and we’ll help you explore:

  • Local grant initiatives
  • Municipal housing trusts
  • Nonprofit-supported programs
  • Energy-efficiency upgrade incentives (Mass Save®, etc.)

📩 Reach out to us to see what’s available in your area.

✍️ Are You Eligible?

These programs are generally available to:

  • Single-family or multi-family homeowners (1-3 units)
  • Primary residences (owner-occupied)
  • Homeowners seeking to build a legal, code-compliant ADU

Each program has its own guidelines — we help you understand and navigate them.

📄 What You’ll Need to Apply

  • Proof of homeownership
  • Property tax documents
  • Income verification (for income-restricted programs)
  • A proposed ADU design or project idea
  • A contractor or architect’s estimate (for some loans)

📌 Need Help Navigating?

ADU Link can guide you through eligibility questions and connect you directly to the application portals for these state and city programs.

📞 Book a free ADU financing guidance call
📧 Or email us: [email protected]