Foster City Affordable ADU Loan Program

The City of Foster City is requesting proposals from qualified firms interested in administering and delivering the City’s Below Market Rate (BMR) Accessory Dwelling Unit (ADU) Loan Program known as the “Affordable ADU Program” (“Program”). Through this program, eligible homeowners can access interest-free financing in exchange for renting their ADUs to low-income households for ten years. The City’s goal is to help build eight (8) deed-restricted ADUs that support the 2023–2031 Housing Element, Program H-D-4-b ADU/JADU Financial Incentive Program (page HE-94):

Provide or partner with another organization to provide a financial incentive program for single-family homeowners to construct an ADU/JADU that is restricted for lower-income households for 10-15 years, with an additional incentive amount for units subject to a preference for identified categories of special needs people who would benefit from coordinated onsite services, including but not limited to people with developmental disabilities.

The City of Foster City is seeking to engage with a selected entity that responds to this RFP (“Contractor”) to administer the program in one of the following types of programs (“Program Type”):

• Loan Administration Only: Contractor will provide and manage financing only – homeowners find their own ADU general contractor/provider.
• Loan Administration and ADU Construction Services: Contractor will serve as both the general contractor for custom-built ADUs and provide and manager of financing of the ADUs for the homeowners. Contractor may partner with general contractor, and/or financing entity to form a team for this RFP.
• Loan Administration and ADU Sales and Installation: Contractor will serve as the seller for pre-manufactured or pre-fabricated ADUs, manager of installation, and manager of the financing of the ADUs for the homeowners. Contractor may partner with general contractor, and/or financing entity to form a team for this RFP.

Schedule:

February 13, 2026 by 5:00 pm:  Deadline to submit questions to njabba@fostercity.org

February 20, 2026: Proposals due by 5:00 PM to njabba@fostercity.org

Contract awarded: approximately 90 days after deadline