The Queen City ADU Grant Program
The City of Charlotte's Queen City ADU Grant Program offers up to $80,000 in matching, forgivable, interest-free financing for property owners building or converting spaces into accessory dwelling units. Here's how it works — and whether you qualify.
At Queen City ADU, we are committed to creating sustainable and affordable housing options in Charlotte. The City of Charlotte's Queen City ADU Grant Program is designed to provide financial assistance to property owners looking to build or convert spaces into Accessory Dwelling Units. With up to $80,000 in matching funds — in forgivable, interest-free financing — this program alleviates financial barriers while promoting long-term housing affordability in our neighborhoods.
How the Program Works
The Queen City ADU Grant Program offers eligible property owners financial support to either construct new ADUs or convert existing spaces — basements, garages, workshops — into habitable units. The funding of up to $80,000 in matching funds is designed to reduce overall development costs while ensuring that units remain affordable for residents.
Key Features of the Program
1. Funding Structure
Property owners can receive up to $80,000 in matching, forgivable loans. Loan forgiveness is directly tied to how the ADU is used — property owners must commit to renting the ADU to income-eligible tenants at an affordable rate for one year for every $10,000 borrowed, with a maximum affordability period of 8 years.
2. Affordability Compliance
To qualify for full loan forgiveness, property owners must adhere to program compliance guidelines. Each year, documentation must be submitted to prove the tenant meets income eligibility criteria — set at or below 80% of the Area Median Income (AMI). Higher forgiveness rates may be available for tenants referred by local supportive services agencies.
3. Documentation and Repayment
Owners provide updated lease agreements and income documentation annually. Failure to comply with rent limits or tenant qualifications can result in a prorated repayment of the unforgiven loan balance.
Eligible Uses of Funds
Funds from the Queen City ADU Grant Program can be used for direct costs associated with ADU development:
- Permits and inspections
- Building materials and labor
- Electrical, plumbing, and mechanical work
- Site preparation and grading
- Utility connections
- Architectural design or construction drawings
To streamline planning, property owners can choose from a selection of UDO-compliant ADU design plans provided by the City of Charlotte — or work with a licensed contractor like Queen City ADU on a fully custom design that still meets program requirements.
Disbursement Options
The program offers two disbursement paths, recognizing that upfront costs can be a barrier:
Pre-Construction Support
Applicants can request early-stage funding to cover certain costs before construction begins — permit fees, architectural design plans, and similar soft costs. Up to 10% of the total award amount can be provided as an advance, easing initial-expense management.
Milestone Payments
Once construction is underway, funds are disbursed directly to contractors based on verified progress inspections. Work is completed before funds are released, minimizing financial risk for the property owner.
Why This Program Matters
The Queen City ADU Grant Program is more than a financial opportunity — it's a commitment to the future of Charlotte, fostering inclusive and affordable neighborhoods. If you're a property owner interested in exploring how an ADU can benefit your community and potentially earn passive income while aiding the affordable-housing initiative, this program is an excellent avenue to explore.
As a licensed North Carolina general contractor working exclusively on ADUs and residential additions in the Charlotte market, I've helped homeowners navigate the intersection of the Queen City ADU Program, private financing, and construction logistics. There are real details that can make or break your grant approval — and I'd rather walk you through them before you apply than after.
Ready to Explore This for Your Property?
Start with a free Feasibility Report — I'll pull your zoning, setback, and utility info and tell you plainly whether your lot works for the Queen City ADU Program (and if not, what alternative financing path fits best).
For more detailed information, visit the City of Charlotte's official Housing & Neighborhood Services page, or contact Queen City ADU to learn how we can assist with your project.