Napa County describes forgivable construction loans for qualifying affordable accessory dwelling units. County materials published in May 2026 give a range of US$60,000 to US$105,000 depending on unit size and project conditions, with forgiveness over five years when the program requirements are met. The maximum is not a guaranteed award. The County’s current program page directs interested homeowners to an online interest form and application route but does not state the remaining funding balance.
Check the homeowner, site, and tenant conditions
The program page says the applicant must own the property and use it as their primary address when applying. The County describes eligible work that includes garage conversions. The ADU must be completed within 24 months after loan approval, and funded work must be done by a contractor licensed by the California Contractors State License Board. Work begun before applying may still be eligible, but expenses incurred before the County issues a reservation of funds are not covered.
The unit must be rented to a household meeting the County’s 80% AMI income limit. The current page lists maximum monthly rents, including utilities, of US$3,171 for a one-bedroom unit and US$3,524 for a two-bedroom unit as of June 2026. The County says rent limits update annually in June, and the referenced income table is for April 2025 through 2026. Confirm the current rent and income schedule rather than carrying these dated amounts into a later application.
The County identifies participating localities and distinguishes its unincorporated-county fee incentive from fees assessed by incorporated cities. Being within Napa County does not mean the County can waive a city fee or that the City of Napa uses the County’s fee schedule.
Reserve funds before counting project costs
The County page currently provides a form to begin the process, but it does not publish a balance or guarantee that a reservation will be made. Contact Housing and Community Services to confirm the address’s program administrator, funding, current guidelines, tenant standards, and which costs can be included. Keep a dated cost record and do not commit to funded work based only on an initial inquiry.
The loan does not replace local zoning, building permits, inspections, utility approvals, or the County’s affordability agreement. For the separate County ADU fee schedule, see the Napa County affordable-housing impact-fee guide. For broader program comparisons, see the current ADU grants and programs guide.