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Affordable Dwelling Unit (ADU) Program - For-Sale Units

DC Department of Housing and Community Development (DHCD) · Washington, District of Columbia

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Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Shared appreciation

Settled on the terms set by DC Department of Housing and Community Development (DHCD)

What is Affordable Dwelling Unit (ADU) Program - For-Sale Units?

Affordable Dwelling Unit (ADU) Program - For-Sale Units is a shared-appreciation loan for homebuyers in Washington, District of Columbia, administered by DC Department of Housing and Community Development (DHCD).

  • Affordable Dwelling Units (ADUs) are below-market, locally income-restricted for-sale and for-rent homes that DHCD monitors and enforces in the District. The for-sale ownership side provides price- and resale-restricted condos, townhomes, or houses produced in exchange for zoning relief, tax incentives, public financing, or access to District land. Income limits, affordability periods, and resale restrictions are set in each unit's originating documents; where not in conflict, DHCD administers ADUs under its Inclusionary Zoning regulations. ADUs exclude federally restricted (HOME/LIHTC/CDBG) and Housing Production Trust Fund units.
  • Below-market purchase price on income-restricted homes.
  • DHCD-monitored affordability.
  • Resale-price protection.
  • Administered under standardized IZ procedures where applicable.
  • Combinable with HPAP/DC Open Doors.
  • Funding comes from Units produced in exchange for zoning relief, tax incentives, public financing, and/or the right to purchase or lease District-owned land (no direct cash assistance).

Do you have to pay it back?

Affordable Dwelling Unit (ADU) Program - For-Sale Units is a shared-appreciation loan and is repaid under the terms set by DC Department of Housing and Community Development (DHCD).

  • Repayment is triggered by Resale governed by covenant/originating-document resale restrictions; owner must submit IZ-ADU Resale Price Request to DHCD and receive a pricing letter before selling or refinancing.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Affordable Dwelling Unit (ADU) Program - For-Sale Units is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • A completed homebuyer education course, through Where DHCD applies IZ procedures: IZ Orientation plus approved 8-hour homebuyer class for purchasers
  • Residency: Owner must occupy as primary residence; live/work-in-DC priority where IZ procedures apply
  • DRAFT (dpa-gap-finder 2026-06-13): pending review. Eligibility terms (income limit, affordability period, resale restriction) are project-specific and defined in the unit's deed/covenant/LDA/ADU administration plan; buyers must occupy as primary residence; owner must submit IZ-ADU Resale Price Request before selling/refinancing; third-party contributions subject to DHCD policy. Gaps: no uniform credit score, DTI, 4-person income dollar limit, or assistance amount (no cash provided; varies per project).

The program excludes

  • Manufactured homes
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Affordable Dwelling Unit (ADU) Program - For-Sale Units limits household income to 80% of the area median income, which varies by county and household size.

  • Income limits are project-specific, set in each unit's originating documents; where not in conflict, DHCD applies IZ income limits (commonly 50%-80% MFI). Exact dollar limits vary by project and household size.
  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Affordable Dwelling Unit (ADU) Program - For-Sale Units caps the purchase price as follows: Below-market purchase price set per unit by originating documents / DHCD pricing (varies by project).

  • Eligible property types include Condo, Townhome, and Single Family.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Affordable Dwelling Unit (ADU) Program - For-Sale Units serves buyers purchasing in Washington, District of Columbia.

How do you apply?

Applications for Affordable Dwelling Unit (ADU) Program - For-Sale Units go through DC Department of Housing and Community Development (DHCD), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Where DHCD applies IZ procedures: IZ Orientation plus approved 8-hour homebuyer class for purchasers.

  2. Contact DC Department of Housing and Community Development (DHCD) to reserve funds

    Funds are reserved through DHCD lottery or waitlist (same mechanism as IZ for most units), and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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