ADU Grant Program

Program Background: 

In 2024, the Borough Assembly directed staff to create a grant program aimed at boosting housing inventory across the community. This program offers financial incentives to existing homeowners who add an additional dwelling unit  to their property by reimbursing construction expenses. While acknowledging that no single program can fully address the community's housing challenges, the ADU Grant Program is one of several initiatives the Assembly and Borough are pursuing to make housing more accessible for all residents.

Application Process:

Prospective applicants shall submit a completed application after obtaining a Borough zoning permit and, for City of Ketchikan residents, a City building permit.  Zoning and building permits issued before September 20, 2024 are not eligible and will not be accepted when submitting the application. Information on how to obtain a Borough zoning permit can be found on the Borough Planning Department’s webpage and information on how to obtain a City building permit can be found on the City Public Works, Building Department webpage. Per the Award Eligibility Requirements, the ADU project must be completed within two (2) years of the issuance of a KGB zoning permit.

 Both KGBC and KMC allow for the extensions of zoning and building permits beyond the required 2-year completion date of the ADU project. If an applicant successfully receives an extension  of either the zoning and/or building permit past this deadline, the applicant is still required to complete their project within 2 years of the issuance of their Borough zoning permit. Amendments to the applicant’s grant agreement will not be authorized by Borough staff past the initial 2-year timeframe.  

After obtaining the Borough zoning permit and, when applicable the City building permit, the Borough Manager’s Office will review the application package to determine that all preliminary eligibility requirements have been met.  If the criteria are met, the Manager’s Office will execute a grant agreement between the applicant and the Borough.

Grant Disbursement:

Following the completion of the ADU project within two years of the issuance of the applicant’s Borough zoning permit, the grantee shall submit before and after photos, including interior and exterior photos of the new ADU to the Borough Manager’s Office. In addition to the photos, ADUs constructed within the City of Ketchikan shall provide documentation demonstrating the grantee has successfully passed their final inspection and and for new construction projects, has been issued  a certificate of occupancy from the City’s Public Works Building Department. 

Receipts and invoices for goods and services used to complete the new ADU shall be attached to the applicant’s reimbursement request. Following the submittal of the required documentation to the Manager’s Office, staff will review the grantee’s case file to ensure they are in compliance with all applicable taxes, Borough utility charges and have no outstanding judgements, liens or  Borough Code Enforcement notices of violation.  If no issues are identified during this review, Borough staff will proceed to issue a check to the grantee, providing reimbursement of up to $14,000 for the completion of a new ADU.  

ADU  Grant Program Information:

• Program Guidelines
• Fillable Application
• Fillable IRS Form W-9
• Sample Grant Agreement 

General ADU Information:

• American Planning Association - Accessory Dwelling Units
• AARP - The ABCs of ADUs