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Accessory Dwelling Unit Loan Program

The Cooperative Bank of Cape Cod (Honorable Mention) - Hyannis, MA

2022 Community Committment Awards Submission

  • Affordable Housing
  • Asset Size: Small

The Cooperative Bank of Cape Cod (The Coop) introduced a loan program designed to provide homeowners capital to create Accessory Dwelling Units (ADUs), a key tool to help alleviate the region's severe housing crisis.

An ADU is a self-contained living space or apartment in a single-family home that is either attached to it or in a separate structure on the same property. They have been recognized as effective solutions to provide much needed affordable housing while generating revenue for homeowners as they become landlords in the comfort of their own homes.

The Coop has implemented flexible qualifying guidelines to streamline the ADU loan qualification process, including allowing the use of projected rental income to be considered with the applicant's existing income. Financing for an ADU can take either first or second lien position depending on what best suits an individual's needs.

This is a new, innovative program aimed at addressing one of the region's most pressing issues – lack of affordable housing.