Mayor Eric Garcetti announced today that Los Angeles has been selected as a winner of a $1 million Bloomberg Philanthropies U.S. Mayors Challenge grant that will go toward a program encouraging homeowners to build accessory dwelling units in exchange for allowing a homeless resident to rent the unit for three years.

The grant is the result of a yearlong competition where leaders developed and tested strategies aimed at tackling problems facing urban cities.

“This program is good business for a good cause,” Garcetti said. “The ADU pilot is specifically designed to pair homeowners with homeless Angelenos who are stable, prepared to move into housing, and ready to rebuild their lives. For a homeowner, it’s a win-win: the city lowers your construction costs, matches you with a tenant who is determined to make their housing work, and connects you with a case manager to ensure a seamless transition.”

Garcetti’s office said the grant could help residents build enough ADUs to house hundreds of Angelenos in the program’s first three years.

“Mayors across the country are tackling the big issues that Washington is ignoring. This competition is designed to help them do even more, by incentivizing and supporting big — and achievable — new ideas,” said Michael Bloomberg, founder of Bloomberg Philanthropies and former mayor of New York City. “Congratulations to all of the winning mayors, who represent cities large and small, in regions across the country. We look forward to seeing the results of their work — and to helping the ideas that prove most effective spread far and wide.”

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Volunteers hit street offering Lunches with Love for homeless Garcetti’s office said the new ADU program, which is scheduled to launch in the spring of 2019, will include an online portal where property owners can access pre-approved unit designs and other information; offer financial incentives for property owners valued between $10,000 and $30,000 to build an ACU; an online matching tool to ensure a good fit between renters and property owners; and case management support for homeless renters, along with reduced rent, with the expectation that by the third year, the tenant would be able to pay the full rent amount.

L.A. was one of nine cities given $1 million grants to implement programs seeking solutions to problems including climate change, the opioid crisis and economic opportunity.

The other winners of the U.S. Mayors Challenge are Denver; Durham, North Carolina; Fort Collins, Colorado; Georgetown, Texas; Huntington, West Virginia; New Rochelle, New York; Philadelphia; and South Bend, Indiana.