City of Charlotte Launches New Accessory Dwelling Units Program

Published on September 24, 2025

A small accessory dwelling unit positioned outside a larger home on the same property.

CHARLOTTE, N.C. (Sept. 24, 2025) – The City of Charlotte Housing & Neighborhood Services Department is making it easier for property owners to add accessory dwelling units (ADUs) on their property with the new Queen City ADU Program. An accessory dwelling unit is an additional residential unit that can be attached to an existing house (e.g., converted basement, garage) or detached (e.g., a separate building in the backyard). These units are complete homes that function independently from the main house. Key features include a kitchen, bathroom, sleeping area and separate entrance.

Why ADUs Matter

Diversified housing types are a key trend in affordable housing across the country, and ADUs are Charlotte’s newest way to put this approach into action. ADUs are a practical way to add density while preserving the character of Charlotte neighborhoods and promoting environmental sustainability.

These units provide smaller housing options that are currently missing in Charlotte’s housing mix. This type of smaller unit housing fits the needs of many seniors, retirees and single residents, as well as multigenerational families. ADUs are a creative way for homeowners to build wealth via rental income while helping others find affordable housing.

Program Overview and Eligibility

  • The Queen City ADU Program offers up to $80,000 in forgivable, interest-free financing to help homeowners build an ADU.
  • Property owners (owner-occupants or non-occupants) within Charlotte city limits are eligible.
  • ADUs must be self-contained, with their own kitchen and bathroom, subordinate to the main home, and no more than 50% of the primary residence (with a cap of ~1,000 square feet for detached units).
  • Only one ADU per lot is permissible.
  • Owners must rent their ADUs to tenants earning no more than 80% AMI. Monthly rents may not exceed the published Fair Market Rent (FMR) for a studio unit at 70% AMI, as defined in the City of Charlotte’s Zoning Administration Manual.
  • The loan is forgiven at a rate of $10,000/year of affordability, up to eight years.
    • Faster forgiveness is possible if units house voucher holders or residents referred by supportive service agencies or the city’s housing partners (up to $15,000/year).
  • Homeowners interested in ADUs can use the city’s free online MyADU Eligibility Tool to quickly see if their property is feasible for an ADU.

This new program will help address Charlotte’s need for more affordable housing. Interested residents can apply today through CiviForm. More information is available on the Queen City ADU Program page at charlottenc.gov.

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