The Town of Truckee describes forgivable loans of up to US$50,000 for creating an ADU or JADU on an existing property, including permitting an existing unpermitted unit. The program is limited to eligible homeowners in Truckee. It is a loan with conditional forgiveness, not an unconditional grant; the recorded agreement, funds available, and individual approval control.

Compare the two rental options

The Town lists two options:

  • A 1% simple-interest loan over seven years, forgiven at 14.3% each year after the unit receives a certificate of occupancy and the owner continues to meet the recorded conditions. The unit must be rented year-round to a locally employed tenant household at or below 60% of area median income.
  • A 2% simple-interest loan over ten years, forgiven at 10% each year after occupancy approval and continued compliance. The tenant household must be at or below 120% of area median income and meet the Town’s local-employment qualification.

Both options require a lease of at least 12 months. Rent must be affordable under the selected option. If the property is sold before the loan term ends, the Town says the remaining principal and interest become due. These are program obligations, not general Truckee rental rules.

Apply and plan construction milestones

An intake form may be submitted before or after a building-permit application. Preliminary review does not reserve money. Funding is held only after the program administrator reviews the financial and project documents, approves the loan, and the borrower returns the acceptance documents. Applicants should confirm current balance and project eligibility before treating the maximum as available.

The Town requires a permit application within six months of loan approval and permit issuance within twelve months. The first inspection must be scheduled within eighteen months. The certificate of occupancy is due within thirty months for new construction, or within twenty-four months for a conversion or an existing unpermitted unit. The guidelines say the program runs through December 31, 2026 or until funds are exhausted. The Town page’s statement that funds were available July 1, 2026 does not establish the balance today.

Keep the loan separate from approval

The Town’s development and building requirements still apply. A preliminary loan review does not establish zoning eligibility, permit approval, utility capacity, or permission to occupy. Ask Truckee to confirm the current guidelines, local-employment test, eligible costs, remaining funds, and the agreement that would be recorded.

For other public-program examples and status checks, see the current grants and programs guide and the guide to continuing funding conditions.