Minimize the Cost of Your ADU

A new-build, detached "back yard cottage" is the most expensive type of ADU construction. Other options are available that can meet your housing needs, while reducing cost and improving affordability. Here are a few to consider.

Non-ADU Remodel

Conversion ADU

Garage Conversion

Prefab Construction

Reduce size to save fees

Smart site planning

Sanitation

Plan Your Financing

The County has created the ADU Financing Guide to provide property owners with guidance and tools to understand the costs associated with building ADUs and the way that people typically pay for them.

  • Financing Guide

A forgivable loan program is available for ADU construction in exchange for renting to income-qualified renters at affordable rates. Up to $40,000 is available to fund construction, subsidize fees or contribute to a down payment that will allow borrowers to secure additional financing.

Habitat for Humanity has two programs to assist homeowners with building ADUs. The Habitat ADU Program is available to Santa Cruz and Monterey Counties, and the My House My Home Program is available to Santa Cruz City and County only.