Real estate crowdfunding platform GROUNDFLOOR announced earlier this week a new pilot program to spur the development of more accessory dwelling units (ADUs) in the Atlanta jurisdictions. According to GROUNDFLOOR, the 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 the crowdfunding 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.”
While sharing more details about the initiative, GROUNDFLOOR Co-Founder and CEO, Brian Dally, stated that the ADUs are an “innovative” solution that meets the high demand for constrained housing supply in metropolitan areas, such as Atlanta without adversely affecting the “character” of a neighborhood.
“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.”
Eric Kronberg, who serves as Principal of Kronberg Urbanists + Architects and helped to craft Atlanta’s initial ADU zoning regulations, then added:
“ADUs have broad benefits for property owners and communities, especially in a market like Atlanta where we desperately need more in-town affordable housing. 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.”
Founded in 2013, GROUNDFLOOR claims to be the first and only real estate lending marketplace open to non-accredited investors.