The City of Oakland has launched a low-interest loan program to help convert unpermitted accessory dwellings to legal units.

The Accessory Dwelling Unit Loan Program will provide financing and technical assistance to low-income homeowners to convert an existing unpermitted secondary unit into a legal Accessory Dwelling Unit or Junior Accessory Dwelling Unit, city officials said.

The program is designed to help ensure units that were developed outside of the required permitting process are safe, legal and continue to provide flexible housing options for tenants and family members, officials said.

Participants can receive a deferred payment loan of up to $100,000 and guidance with the design, bidding, permitting and construction process.

To be eligible, a property must be owner-occupied and a single-family residence that is in an Oakland “Opportunity Zone” in West Oakland along the Interstate 880 corridor.

Some properties in East Oakland will also be eligible.

To qualify, household income must be at or below 80 percent of the area median for Alameda County, which currently is $87,700 for a two-person household and $109,000 for a four-person household.

More information on the program is available on the city’s website.