PITTSFIELD, Mass.–Greylock Federal Credit Union said it has introduced a new loan program to support the development of accessory dwelling units, also known as ADUs, in Berkshire County, Mass.
An ADU, which is a smaller, residential unit located on the same property as a one or two-family home, has emerged as one solution to housing challenges across the country due to the benefits of their convenient size and placement, according to proponents.
According to Greylock FCU, in Massachusetts ADUs are now permitted by right, and cities and towns throughout Berkshire County are updating zoning regulations to facilitate their development. The city of Pittsfield has already updated zoning regulations to address ADU construction.
ADU Examples
The $1.6-billion Greylock explained that ADUs can be integrated within the main house, attached to it, or constructed as a separate structure. Common examples of ADUs include converted basements, over-garage apartments, additions to the primary residence or standalone backyard cottages.
GFCU added the units typically feature their own kitchen, bathroom, and living area, providing complete living facilities for one or more individuals.
Watching the Conversation
“We’ve been watching the conversation around ADUs for a while now, and this loan product is one that meets the growing need of our community,” Tara McCluskey, vice president, mortgage originations, said in a statement.
The Requirements
According to Greylock, the new loan program requires the following:
- The property must be the borrower’s primary residence ADU must be installed on the property securing the loan, subject property must be a 1-4 family residential property
- Borrower must provide approval from the city or town authorizing the construction of the ADU
- Borrower must provide a copy of their accepted contract/agreement for the ADU from a licensed contractor at the time of application
- May be a second mortgage or first mortgage product (all loans are subject to credit approval)
‘Variety of Creative Solutions’
Added Myla Franklin, community lending officer, in a statement, “The housing shortage requires a variety of creative solutions, and I’m excited to know that Greylock is a part of this process to create a pathway for housing,” Franklin said.
Informational Sessions
Greylock FCU said it will be hosting information sessions to help community members navigate the ADU development process and to learn more about the new loan program.