The Queen City ADU Program is a City of Charlotte program, announced September 24, 2025, that offers up to $80,000 in forgivable, interest-free financing to build an ADU. In return, the owner rents the unit to a tenant earning no more than 80% of area median income, at a capped rent. Check with the city for current availability.
Who can apply?
Property owners within Charlotte city limits, whether they live in the home or not, according to the city's announcement. The ADU has to meet the city's rules: a self-contained unit with its own kitchen, bathroom and entrance, no more than 50% of the main home, with detached units capped at about 1,000 sq ft, and one ADU per lot.
What are the rent and tenant rules?
- Tenants must earn no more than 80% of area median income (AMI).
- Monthly rent cannot exceed the published Fair Market Rent for a studio at 70% AMI, as defined in the city's Zoning Administration Manual.
How is the loan forgiven?
At $10,000 for each year the unit stays affordable, for up to eight years. Forgiveness can run faster, up to $15,000 a year, if the unit houses a voucher holder or a resident referred by a supportive service agency or one of the city's housing partners.
How do I start?
The city points applicants to its free MyADU Eligibility Tool to check feasibility, and takes applications through CiviForm. Program terms and funding can change, so confirm the current details with Housing & Neighborhood Services before you design around it.
Is it a good deal?
It depends on your plans for the unit. If you intended to rent it long term anyway, forgivable financing can cover a large share of a modest ADU's cost. If you want market rent, family use or flexibility to sell soon, the affordability years may not fit. Compare it against your own numbers from the cost guide and the rent guide.
Can you build an ADU under the program?
We can design and build to the program's unit rules and prepare the plans and permit documents you will need. We do not run the program or decide eligibility; the city does.
Related
Sources, as of October 2026: City of Charlotte, "City of Charlotte Launches New Accessory Dwelling Units Program" (September 24, 2025). Program availability after that date not independently confirmed.
Updated October 2026