Durham is among the first 14 cities in a Bloomberg Philanthropies housing program worth $450,000 to $750,000 each. The city says it will use it to expand backyard units.

Durham has been chosen for a new Bloomberg Philanthropies program meant to get more homes built. The city says it will use the money and expert help to expand accessory dwelling units, the small second homes built on the same lot as a house.

Bloomberg Philanthropies announced the program Thursday. Durham is one of the first 14 local governments named. The program is meant to grow to up to 30. The city confirmed its selection Friday.

Each government selected will get $450,000 to $750,000, the foundation said. Neither release says how much Durham will receive.

“Housing should be the mechanism that brings communities together,” Mayor Leonardo Williams said in the city’s announcement.

What the program pays for

The program copies three approaches that the foundation says worked elsewhere:

  • Faster permits, from San Diego, where the city set a 30-day limit on approvals and moved reviews online.
  • More accessory dwelling units, from Austin, Texas, which allowed up to three homes on most single-family lots.
  • Housing strike teams, from Atlanta, which put every agency with a hand in housing into one unit to restart stalled projects.

Roughly 10 local governments will take up each approach. The money can pay for technology to clear approvals, architects to draw permit-ready plans and staff for strike teams, the foundation said. Accelerator for America and other specialists will provide hands-on help.

Within two years, the foundation expects participants to cut approval times in half, double the number of accessory dwelling units in the pipeline and increase housing supply citywide.

Durham’s starting point

The city already runs a small Affordable ADU Pilot Program with Coram Houses. It uses $1.75 million from the city’s Forever Home, Durham program. The terms, from the city’s program page:

Pilot term Detail
Homeowners selected 20, all funding committed; applications closed
Typical loan Up to $80,000
Interest rate 2% fixed, 30-year loan
Who can rent the unit Tenants earning 80% of area median income or less
How long it stays affordable 30 years

“With support from Bloomberg Philanthropies, we’re expanding the use of accessory dwelling units and other creative housing across Durham,” said Sarah Viñas, director of the city’s Housing and Neighborhood Services Department.

The other first-round places include Alexandria, Virginia; Charleston and Columbia, South Carolina; Chattanooga and Nashville, Tennessee; Louisville, Kentucky; and Miami.

What we do not know yet

The city has not said how much it will receive, when the work starts or whether a second round of ADU loans will open. We will update this story when it does.

What it means for you

  • If you want to build a backyard unit: the current pilot is full. The city says it will post any new ADU program on its ADU Pilot Program page. Questions go to Housing and Neighborhood Services at 919-560-4570.
  • If you are building anything: permit times are one of the things the program targets. Our building permits and zoning guide explains how the process works now.
  • Renting or buying: see our Durham home prices page for the latest figures.