Back to Blog Casita / ADU San Antonio Casita Program: Your Complete Guide to $35K in City Incentives (2026)
Mark WhiteJune 17, 20269 min read What is the San Antonio Casita Incentives Pilot Program?
The City of San Antonio created the Casita Incentives Pilot Program to help homeowners build accessory dwelling units (ADUs) on their existing property. The program offers forgivable loans of up to $35,000 to qualifying homeowners, meaning you never pay the money back as long as you meet the program's requirements.
The goal is to increase affordable housing in San Antonio by encouraging homeowners to build casitas, which are small, self-contained homes (also called ADUs, guest houses, or in-law suites) on the same lot as a primary residence. Legacy Home Improvements is on the City's official Casita Contractor List and has helped multiple San Antonio families navigate this program.
How Much Can You Get? Understanding the Two Incentive Levels
The City offers two levels of forgivable loans based on your household income relative to the Area Median Income (AMI):
- Level I: Up to $25,000. This is a 5-year forgivable loan available to homeowners or tenants earning up to 80% AMI (for owners) or 50% AMI (for renters). After 5 years of compliance, the entire loan is forgiven.
- Level II: Up to $35,000. This is a 10-year forgivable loan available to homeowners or tenants earning up to 50% AMI (for owners) or 30% AMI (for renters). After 10 years of compliance, the full amount is forgiven.
- Design Fee Reimbursement: Up to $4,500 for qualifying owner-occupants earning up to 80% AMI. This can cover the cost of a permit-ready plan or help offset custom design fees.
- Permit Fee Waivers: The City waives City permit fees and SAWS (San Antonio Water System) connection fees for qualifying casita projects.
Who Qualifies for the Casita Program?
The program is designed for San Antonio homeowners who want to add a casita to their property. Key eligibility requirements include:
You must own and live on the property where the casita will be built (owner-occupied). Your household income must fall within the AMI limits for your household size. The casita must be rented at affordable rates set by the City during the compliance period. No short-term rentals (like Airbnb) are allowed for incentivized casitas. You need proof of roof financing to cover construction costs upfront, as the City reimburses you after the casita is completed.
Legacy offers a free eligibility checker on our Casita Program page that lets you enter your household size and income to see which incentive level you qualify for.
What Documents Do You Need to Apply?
The application process requires several documents. Legacy helps you gather everything, but here's what you'll need:
- Income documentation: Prior year's tax documents or 2 months of bank statements for each household member over 18.
- Proof of financing: A loan statement, loan guarantee, or bank statement showing you have funds to cover the construction cost.
- Texas Driver's License for all household members over 18.
- Property ID from Bexar County and zoning designation from the City's One Stop Map.
- Proof of citizenship: Copy of Social Security Card or Residential Permit.
- HOA approval letter (if your property is in an HOA).
Have Questions? Call Us Directly
Talk to a real person, not a call center. Mark and the Legacy team answer roofing questions all day, every day.
Call (210) 272-7272 → Step-by-Step: How the Casita Program Works
Here's how the process typically unfolds when you work with Legacy Home Improvements:
- Free Consultation: We visit your property, assess your lot, review your goals, and check your incentive eligibility.
- Plan Selection: Choose from 5 City-approved permit-ready plans (375 to 800 sq ft) or bring a custom design.
- Application Submission: Legacy helps you gather documents and submit your incentive application to the City's NHSD office.
- Secure Financing: Arrange your construction financing (loan or savings). Remember, the City reimburses you after completion.
- Permits and Approvals: Legacy pulls all necessary permits and coordinates with Development Services.
- Construction: We build your casita from foundation to finish, typically in 3 to 6 months.
- City Inspection and Reimbursement: After final inspection, the City processes your forgivable loan. It goes on your property as a lien that is forgiven after the compliance period.
Common Misconceptions About the Casita Program
Many homeowners have questions about how the program works. Here are some common misconceptions we hear:
Misconception: You get the money before you build. Reality: The City reimburses you after the casita is completed and inspected. You need financing to cover the construction cost upfront.
Misconception: You have to pay back the loan. Reality: As long as you meet the compliance requirements (renting at affordable rates for the required period), the entire loan is forgiven. No monthly payments, no interest.
Misconception: Only low-income families qualify. Reality: Level I is available to homeowners earning up to 80% of the Area Median Income, which covers a wide range of San Antonio households. For a family of 4, that's up to $77,300 per year.
Misconception: You can use the casita however you want. Reality: Incentivized casitas must be rented at City-approved affordable rates. No short-term rentals like Airbnb during the compliance period.
Why Work With Legacy for the Casita Program?
Legacy Home Improvements is one of the contractors on the City of San Antonio's official Casita Contractor List. We've been building across Greater San Antonio for over 25 years and understand the local permitting process, zoning requirements, and construction standards better than anyone.
When you work with Legacy, you get a single point of contact for your entire casita project: plan selection, incentive applications, permitting, construction, and final inspection. We make the process as simple as possible so you can focus on what matters, getting your casita built and putting it to use.
Call (210) 272-7272 or visit our Casita Program page to schedule your free consultation.
MW Mark White
Owner, Legacy Home Improvements · San Antonio since 1999
Mark has been in the roofing business for over 25 years. He personally inspects homes, works with insurance adjusters, and answers every email at mwhite@legacytx.com.
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