GROUNDFLOOR Announces New Pilot Program to Spur Accessory Dwelling Unit (ADU) Growth in Atlanta
GROUNDFLOOR, the wealthtech platform that allows everyone to build wealth through real estate, is announcing a new pilot program to spur the development of more accessory dwelling units (ADUs) in the Atlanta jurisdictions where they are currently permitted. The new initiative is designed to support developers who seek financing for the renovation or new construction of ADUs, and enables socially minded investors to fund these projects through GROUNDFLOOR’s platform.
Approved through amended zoning ordinances, ADUs are often used to provide extra income for the homeowner, new spaces for multigenerational living, and more affordable rents that can mitigate gentrification, all while using existing space in growing communities.
“ADUs are an innovative solution to meeting the high demand for constrained housing supply in metropolitan areas such as Atlanta, without adversely affecting the character of a neighborhood, in a way that directly benefits its residents,” said GROUNDFLOOR co-founder and CEO Brian Dally. “This is the kind of social impact that the rising tide of directly-engaged individual investor capital promises as it disrupts big banks, private equity, and Wall Street.”
According to Atlanta’s Department of City Planning, interest in ADUs continues to grow, but accessing financing for these projects has been a challenge. In its pilot program, GROUNDFLOOR has already funded three ADU projects, with plans to do several others.
“ADUs have broad benefits for property owners and communities, especially in a market like Atlanta where we desperately need more in-town affordable housing,” said Eric Kronberg, who serves as Principal of Kronberg Urbanists + Architects and helped to craft Atlanta’s initial ADU zoning regulations. “Even with zoning regulations now permitting ADUs, we see limitations to accessing financing as the biggest barrier to more development. We really appreciate that GROUNDFLOOR is focusing on a loan product to overcome this obstacle.”
For more information on how to finance ADUs or other real estate projects through GROUNDFLOOR, visit borrowers.groundfloor.com.
Founded in 2013, GROUNDFLOOR opens private capital markets to all. GROUNDFLOOR was the first company qualified by the U.S. Securities & Exchange Commission to offer direct real estate debt investments via Regulation A for non-accredited and accredited investors alike. Today, it remains the only product offering everyone the ability to build fully customizable real estate debt portfolios for short-term, high-yield returns. The company is headquartered in Atlanta and has raised $23.7 million in equity capital from a variety of sources, including venture capital and online public equity offerings. As of its most recent round of financing, the company is 23 percent customer-owned.