What Eastern NC Can Learn From Charlotte's New ADU Program
Charlotte just launched an $80,000 forgivable loan program for ADU construction. Here's what this means for the future of ADU development across North Carolina – and what eastern NC homeowners should know.
Charlotte made headlines in September 2025 by launching the Queen City ADU Program, offering up to $80,000 in forgivable, interest-free financing to help homeowners build accessory dwelling units. While Charlotte sits outside our eastern NC service area, this program signals important trends for ADU development across North Carolina and provides a glimpse of what might be coming to communities like Greenville, New Bern, and Jacksonville.
At Plank Construction, we're watching how larger NC cities approach ADU housing challenges because these programs often preview policies that spread to smaller communities. Understanding Charlotte's approach helps eastern NC homeowners recognize opportunities and prepare for potential future programs in our region.
Let's explore what Charlotte's doing and what it means for eastern North Carolina.
Charlotte's Queen City ADU Program: The Basics
The City of Charlotte Housing & Neighborhood Services Department is making it easier for property owners to add accessory dwelling units on their property with the new Queen City ADU Program, offering up to $80,000 in forgivable, interest-free financing to help homeowners build an ADU. Property owners (both owner-occupants and non-occupants) within Charlotte city limits are eligible, and ADUs must be self-contained with their own kitchen and bathroom, subordinate to the main home, and no more than 50% of the primary residence with a cap of approximately 1,000 square feet for detached units.
The program requires that owners rent ADUs to tenants earning no more than 80% of area median income, with monthly rents not exceeding published Fair Market Rent for studio units. The loan is forgiven at a rate of $10,000 per year of affordability, up to eight years, with faster forgiveness possible if units house voucher holders or residents referred by supportive service agencies.
Why Charlotte Created This Program
Charlotte recognized that diversified housing types are a key trend in affordable housing across the country, and ADUs are a practical way to add density while preserving neighborhood character and promoting environmental sustainability. The city identified that smaller housing options are currently missing from Charlotte's housing mix, particularly units suitable for seniors, retirees, single residents, and multigenerational families.
Charlotte's program also acknowledges that ADUs provide creative ways for homeowners to build wealth through rental income while helping others find affordable housing. This dual benefit – helping both property owners and renters – makes ADU programs politically popular and practically effective.
What Makes Charlotte's Approach Notable
The $80,000 forgivable loan amount represents substantial support that dramatically reduces the financial barrier to ADU construction. In Charlotte's construction market, this covers roughly 50% to 70% of typical ADU construction costs, making projects feasible for many homeowners who couldn't otherwise afford them.
The income restrictions and rent caps ensure these ADUs serve workforce housing needs rather than becoming luxury rentals. By targeting tenants at 80% of area median income, Charlotte aims to house teachers, healthcare workers, service employees, and others who struggle to find affordable housing.
The forgiveness structure incentivizes long-term affordable housing rather than short-term compliance. Eight years of affordable rent obligations ensures sustained impact while the accelerated forgiveness for housing voucher holders encourages serving the most housing-insecure residents. Charlotte's online eligibility tool removes barriers to entry by helping homeowners quickly determine if their properties qualify before investing time in applications.
Implications for Eastern NC Communities
Charlotte's program demonstrates growing recognition across North Carolina that ADU-friendly policies can address housing challenges without massive development projects or controversial zoning changes. Eastern NC communities watching Charlotte's results might consider similar approaches adapted to our region's needs.
Our area faces different but related housing challenges. Military communities like Jacksonville need flexible housing for service members and their families. University towns like Greenville struggle with faculty and staff housing affordability. Coastal areas like New Bern balance tourism, retiree, and workforce housing needs. ADU programs could address each of these challenges.
The financial assistance model Charlotte pioneered could be adapted for eastern NC's generally lower construction costs. An eastern NC program might offer $50,000 to $60,000 in forgivable loans while achieving similar impact due to our region's lower land and construction costs compared to Charlotte. Rural eastern NC counties typically have less funding capacity than Charlotte but might partner with state programs, housing authorities, or nonprofit organizations to create similar ADU incentive programs.
Current ADU Landscape in Eastern NC
Eastern NC communities have generally embraced ADU development more readily than Charlotte did historically, partly because our lower density and larger lot sizes make ADUs less controversial than in dense urban neighborhoods. Counties like Pitt, Craven, and Onslow have updated regulations in recent years to make ADU permitting more straightforward.
However, eastern NC lacks the financial incentive programs Charlotte now offers. Homeowners here build ADUs using personal funds, home equity loans, or construction financing without the forgivable loan advantages Charlotte residents enjoy. This means ADU development in our region depends more on individual financial capacity than in Charlotte. Zoning and permitting processes vary widely across eastern NC, with some areas having streamlined ADU approvals while others maintain complicated special use permit requirements.
What Eastern NC Homeowners Should Know
You don't need to wait for formal programs to build ADUs in eastern NC. Current regulations in most areas already allow ADU development, and construction costs here often run lower than in Charlotte, making projects financially viable without subsidies for many families.
Typical eastern NC ADU construction costs range from $80,000 to $150,000 depending on size and finishes. Rental income potential varies by location but typically runs $800 to $1,400 monthly in our markets, providing solid returns on investment even without forgivable loan programs.
If Charlotte's program succeeds in creating affordable housing while building homeowner wealth, expect eastern NC communities to explore similar approaches. Homeowners who understand ADU development now will be positioned to take advantage of future programs if they develop. Building ADUs under current regulations establishes precedent and normalizes this housing type in your neighborhood, potentially making future development easier for you and your neighbors.
The Future of ADUs in Eastern NC
Charlotte's program likely previews broader trends toward ADU-supportive policies across North Carolina. As housing affordability challenges spread beyond major cities, smaller communities increasingly recognize ADUs as practical solutions.
Eastern NC's military installations, universities, tourism economy, and growing retiree populations all create housing demands that ADU development can partially address. Local governments that embrace ADU-friendly policies position their communities to better serve residents and attract new residents. The next few years will reveal whether Charlotte's program succeeds in creating meaningful affordable housing supply. Positive results will strengthen the case for similar programs across North Carolina including our region.
At Plank Construction, we're building ADUs throughout eastern NC under current regulations while watching policy developments that might make ADU construction even more accessible to homeowners in our communities.
Ready to explore ADU possibilities on your eastern NC property? Contact Plank Construction for a consultation about current regulations, realistic costs, and how ADU development can serve your family's needs while potentially preparing you for future incentive programs.
Plank Construction specializes in ADU construction throughout eastern North Carolina. Our experience with local regulations and our region's specific needs ensures successful ADU projects that serve families well while complying with all current requirements. Contact us today to discuss your ADU plans.