In Kind Donations, Accessory Dwelling Units (ADUs), and Housing Affordability

When I worked at a non-profit—several years ago—we received an in-kind donation from a large organization that I will never forget.

They say you shouldn’t “look a gift horse in the mouth”; but THIS donation was egregious and I was perplexed. It was clear the business hadn’t bothered to reference our donation list and they knew nothing about our clients. I questioned the business because they had the resources to donate something meaningful but “gifted” items that cost us time and didn’t address any of our clients’ needs.

When I hear about certain suggestions to address housing affordability issues, I think about that donation.

Accessory Dwelling Units (ADUs) in Charlotte-Mecklenburg and Affordable Housing

Recently, I became aware of a loan forgiveness program to help property owners build ADUs (independent living units located on the same lot as a primary home) in Charlotte, which will be funded by the city. One of the program goals is to increase the availability of affordable units.

There are a few issues with this attempt to increase affordable housing, but I will focus on just one. To qualify for loan forgiveness, owners can rent the ADU to anyone earning up to 80% area median index (AMI) — in 2025, 80% AMI for a single person was $62,850/year and $89,750/year for a family of 4. The numbers (not taking into account factors such as quality, safety, size, etc.) suggest that this program would not adequately address the current affordable housing availability gap. According to the National Low Income Housing Coalition (NLIHC) , in North Carolina, there are 96 units for every 100 households earning up to 80% AMI. But for every 100 households earning 50% AMI or less, there are only 61 units.

Currently, the program is not targeted enough to address the highest need. It’s not difficult to imagine that many of these ADUs will be rented to those earning closer to 80% AMI.

A Plan to Address Wages and Housing Costs is Needed

ADUs have a place in a comprehensive housing affordability plan, But they don’t fully address some of the underlying issues including low wages and rising housing costs.

Let’s be honest about the reality of the situation and focus on a few numbers. Wages are not keeping up with the cost of housing. In North Carolina, the minimum wage is $7.25/hour. According to the NLIHC, to rent a 2-bedroom, a household would need to earn $27.15/ hour for it to be considered affordable. In non-metro areas, the hourly wage would need to be $19.36/hour.

For workers earning a minimum wage to live somewhere affordable (30% or less of gross income), their rent would need to be less than $400/month or they would need to work 131 hours/week to afford market rate rent.

In the case of family homelessness—a symptom of the housing affordability crisis—the research points to upstream solutions requiring changes in housing and economic policies. Last year, I wrote a health policy brief recommending that North Carolina implement a state-based permanent tenant-based housing voucher program to reduce family homelessness and improve outcomes for children.

For households with low income, vouchers are needed because developers aren’t required to build affordable housing and companies aren’t required to pay a living wage.

The real solutions require a level of political will that, for the most part, doesn’t currently exist.

Conclusion

There are several factors contributing to the current housing crisis. Limited supply is just one of them. This is not an issue we can build our way out of or rely on the market to address. We need a comprehensive, multi-pronged approach to effectively tackle the housing crisis. Until then, it’s important that we be intentional and mindful about the message we are sending when we choose to invest in band-aid solutions instead of a comprehensive plan. Everyone deserves quality, safe, affordable housing that fits their needs. Choosing to live in an ADU is a gift. Being forced to live in one because it’s the only option available to you is not.