Extra Income Stream: Generation Xer Funds New Backyard Apartment with $30,000 Grant
Leiken embarked on a plan to enhance her property by adding an apartment above her charming carriage barn, a quintessential element of Vermont’s architectural heritage. Traditionally used to house horse-drawn carriages, she envisioned this rental property as a source of additional income to ease her mortgage payments. However, her aspirations faced an unexpected hurdle when she discovered structural damage to the barn, rendering the addition of an upper unit a costly endeavor.
Financial constraints forced her to halt the project temporarily. However, a ray of hope appeared on the horizon in 2019 when Leiken stumbled upon a remarkable opportunity: the Vermont State Housing Authority was offering financial support to homeowners for the construction of accessory dwelling units (ADUs) on their properties.
This initiative extended grants to eligible homeowners, allowing them to transform a single-family lot into a multi-unit dwelling. Leiken was fortunate to secure a $30,000 grant through this program, rekindling her dream project and eventually attracting a renter to her newly renovated ADU.
Leiken is not alone in her pursuit of ADUs as a means of generating supplementary income. Across the nation, a growing number of homeowners are recognizing the potential of ADUs to bolster their financial stability. Simultaneously, ADUs, which encompass a diverse range of structures from garage apartments like Leiken’s to standalone tiny homes, contribute to the expansion of long-term housing availability within their communities. This is achieved by increasing residential density, a solution that resonates with local governments from California to New York.
Recognizing the numerous benefits of ADUs, governments in various states are launching innovative ADU-financing programs. These initiatives are designed to provide qualified homeowners with the necessary financial assistance to undertake ADU construction projects, which can often be financially daunting without support.
In essence, ADUs are serving as a bridge between homeowners’ financial goals and the broader community’s need for increased housing density. This symbiotic relationship not only assists homeowners in achieving their income-generating objectives but also contributes to addressing the pressing issue of housing availability and affordability.
The journey undertaken by Leiken and others like her demonstrates the transformative power of ADUs. These backyard dwellings, whether nestled above a barn or fashioned as standalone units, are fostering financial security for homeowners while simultaneously bolstering the housing inventory in communities nationwide. As governments continue to champion ADU-financing programs, this trend is poised to flourish, offering a win-win solution for homeowners and their communities alike.
