Greylock Federal Credit Union has launched a new loan program to support the development of accessory dwelling units, also known as ADUs, in Berkshire County.

An ADU, which is a smaller, residential unit located on the same property as a one or two-family home, has emerged as a pivotal solution to housing challenges across the country due to the benefits of their convenient size and placement.

In Massachusetts, ADUs are now permitted by right, and cities and towns throughout Berkshire County are updating zoning regulations to facilitate their development. The city of Pittsfield has already updated zoning regulations to address ADU construction.

ADUs can be integrated within the main house, attached to it, or constructed as a separate structure. Common examples of ADUs include converted basements, over-garage apartments, additions to the primary residence or standalone backyard cottages. These units typically feature their own kitchen, bathroom, and living area, providing complete living facilities for one or more individuals.

Tara McCluskey, vice president, Mortgage Originations, oversees the new program, and said this product was designed specifically with the community in mind.

“We’ve been watching the conversation around ADUs for a while now, and this loan product is one that meets the growing need of our community,” McCluskey said.

Greylock’s new loan program requires the following:

  • The property must be the borrower’s primary residence
  • ADU must be installed on the property securing the loan, subject property must be a 1-4 family residential property
  • Borrower must provide approval from the city or town authorizing the construction of the ADU
  • Borrower must provide a copy of their accepted contract/agreement for the ADU from a licensed contractor at the time of application
  • May be a second mortgage or first mortgage product (all loans are subject to credit approval)

Myla Franklin, community lending officer, who has also been a part of the conversations around ADUs, is looking forward to working with members interested in this program.

“The housing shortage requires a variety of creative solutions, and I’m excited to know that Greylock is a part of this process to create a pathway for housing,” Franklin said.

Looking ahead, Greylock will be hosting information sessions to help community members navigate the ADU development process and to learn more about the new loan program. For more information, please contact Greylock’s Mortgage Team at 413-236-4125 or visit Greylock’s West Street branch at 150 West St., Pittsfield.