Title
Accessory Dwelling Unit Pilot Program
Action
Action:
A. Approve construction contracts in a cumulative amount up to $1,700,000 for the development of four affordable single-family homes with accessory dwelling units on city-owned parcels, as follows:
- E-Fix Development Corp, LLC (up to $880,000),
- J S & Sons Construction Company, LLC (up to $420,000),
- True Homes, LLC (up to $400,000), and
B. Authorize the City Manager to execute, amend, modify, and renew contracts as needed to complete these transactions.
Body
Staff Resource(s):
Rebecca Hefner, Housing and Neighborhood Services
Warren Wooten, Housing and Neighborhood Services
Explanation
§ The Neighborhood Equity and Stabilization (NEST) Commission and the city’s Anti-Displacement Strategy recommended creating tools to support the creation of affordable Accessory Dwelling Units (ADUs) with a focus on helping lower-income homeowners build wealth and income.
§ The ADU Pilot Program will leverage city-owned land (vacant infill lots) in conjunction with new single-family development. This approach creates two affordable housing units on each city parcel-one homeownership and one rental-while also creating an income stream for the low-income homeowner.
§ Three city-owned parcels have been identified as suitable locations for the in-fill development of single-family homes and also include suitable site conditions to accommodate an ADU: 1727 Pegram Street in Council District 1 and 1809 Taylor Avenue and 2610 Dundeen Street in Council District 2.
§ Each of the three properties are in neighborhoods experiencing significant change and were identified for affordable housing development through an interdepartmental review of city-owned surplus property.
§ On May 19, 2025, the city issued a Request for Proposals (RFP) to solicit proposals to develop affordable single-family homes with ADUs on the city-owned parcels.
§ In response to the RFP, 11 firms submitted proposals for one or more of the three parcels. Each proposal included the firm’s qualifications, preliminary site plans, a development timeline, and a proposed construction budget.
§ The proposals selected were evaluated and based on developer qualifications and experience, development concepts and cost effectiveness, and responsiveness to RFP requirements. The recommended projects are:
- 1727 Pegram Street
§ Parcel identification number: 081-147-08
§ Council District: 1 (Belmont)
§ Acreage: Approximately 0.2 acres
§ Developer: J S & Sons Construction Company, LLC
§ Development Type: One single-family home and one ADU
§ Construction Amount: Up to $420,000
- 1809 Taylor Avenue
§ Parcel identification number: 069-125-66
§ Council District: 2 (Washington Heights)
§ Acreage: Approximately 0.27 acres
§ Developer: E-Fix Development Corp, LLC
§ Development Type: Two single-family homes and two ADUs (parcel will be subdivided)
§ Construction Amount: Up to $880,000
- 2610 Dundeen Street
§ Parcel identification number: 069-062-42
§ Council District: 2 (Washington Heights)
§ Acreage: Approximately 0.1 acres
§ Developer: True Homes, LLC
§ Development Type: One single-family home and one ADU
§ Construction Amount: Up to $400,000
§ The city will maintain ownership of the sites through construction. Staff will actively monitor construction which is expected to be completed within one year of each project start.
§ Upon completion of each project, the properties will be sold to income-eligible households through the House Charlotte program. Affordability requirements and deed restrictions for the homes and the ADU rental units will be included as conditions of each sale. The sale of each property and transfer of ownership to the homebuyers will require future City Council approval.
§ In addition to the pilot program, staff is working on a homeowner guide for the ADU development process, developing pre-approved ADU construction plans, and developing a financial assistance program for affordable ADU projects.
Background
§ On November 13, 2023, City Council approved the use of $5.9 million of Coronavirus State and Local Fiscal Recovery Funds to support the recommendations of the NEST Commission, including the creation of an Accessory Dwelling Unit program to provide affordable rental units and create income streams for low-income homeowners.
§ The proposed projects align with the city’s Anti-Displacement Strategy and NEST Commission recommendations, and support the goals of the Affordable Housing Funding Policy to create resident stability, neighborhood affordability, and economic mobility through the construction and preservation of affordable housing, including the investment priorities of encouraging innovative approaches to housing affordability including the creation of new homeownership options and the use of alternative construction types such as ADUs.
§ Using city-owned land to create affordable housing aligns with national best practices and supports City Council’s goals and priorities - including the Housing Charlotte Framework, the Real Estate and Facilities Policy, the Guidelines for Evaluation and Disposition of City-Owned Land for Affordable Housing, and the city’s commitment to pursuing innovative solutions to address housing affordability.
Charlotte Business INClusion
This contract is exempt under the CBI Program.
Fiscal Note
Funding: Funds available as a result of ARPA revenue replacement.
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