SALT LAKE CITY, UTAH / ACCESS Newswire / September 23, 2025 / Accessory Dwelling Units (ADUs) are rapidly expanding as cities and states adopt new zoning and housing incentives. Yet despite this growth, the financial side of ADU construction has lacked the same standardization seen in larger residential and commercial projects. PayKeeper, a leading provider of escrow and fund control services across multiple industries, has announced a new offering specifically designed for ADU construction.
PayKeeper Escrow for ADUs
A Gap in ADU Construction
While ADUs are smaller in scale, they present similar financial challenges as larger projects:
Homeowners are asked to provide significant upfront payments without assurance of delivery.
Contractors rely on steady cash flow to keep work progressing, but delayed or withheld payments are a common occurrence.
Disputes over payment timing and project completion often slow or halt construction.
Introducing Escrow for ADUs
PayKeeper's ADU-focused fund control system applies escrow principles to smaller residential projects. Funds are deposited at the start of the project and released according to agreed-upon milestones such as foundation completion, framing, or final inspection. This model provides:
Clarity on when payments are due and what work must be completed.
Protection for homeowners from paying ahead of progress.
Security for contractors, knowing that funds are reserved for them once milestones are met.
State Incentives and Future Growth
Across the country, states and municipalities are rolling out incentives to encourage ADU development, including grants, low-interest loans, and streamlined permitting processes. These programs make ADUs more financially accessible to homeowners and more attractive to builders looking for consistent opportunities.
As these incentives expand and ADUs become a core solution to housing shortages, the demand for transparent, standardized financial tools will only increase. By introducing escrow into the ADU market now, PayKeeper is positioning homeowners and contractors to succeed in a sector that is set to grow rapidly over the next decade.
Frequently Asked Questions
How does escrow work in ADU projects?
Homeowners or lenders deposit project funds into a secure escrow account. As milestones are verified, payments are automatically released to the contractor.
Why is escrow important in ADU construction?
It reduces financial risk on both sides. Homeowners avoid overpaying for incomplete work, and contractors know funds are set aside and available once work is delivered.
Does it make the project more complicated?
It actually makes it simpler and optimized. Once milestones are defined, the process runs in the background, creating fewer disputes and less administrative back-and-forth.
What if a dispute arises?
Funds remain in the escrow account until the issue is resolved, protecting both parties from financial loss while negotiations take place.
A Step Toward Standardization
As ADUs become a central piece of housing solutions nationwide, introducing escrow provides a level of financial structure that has been absent.
About PayKeeper
PayKeeper provides escrow and fund control services across several industries, and now ADU construction. Its platform emphasizes trust, transparency, milestone-based disbursements, and compliance with project agreements.
Contact Information
Jefferson Winkelkotter
Marketing Manager, PayKeeper
jefferson@paykeeper.com
SOURCE: PayKeeper
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