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Grant Money is Available to Build Your ADU

The California Housing Finance Agency (known as CalHFA) offers a grant program to assist homeowners in the State with building Accessory Dwelling Units (ADUs). This program is part of its effort to address the housing shortage and increase the availability of affordable housing options.

A CalHFA ADU grant helps create more housing units by providing funds to reimburse pre-development costs associated with the construction of ADUs. These units, also known as granny flats, in-law units, backyard cottages, or secondary units, can be attached to the main house, be freestanding, or be converted from existing spaces.

Homeowners are offered up to $40,000 in assistance covering the predevelopment costs necessary to build and occupy an ADU. These costs can include expenses such as site preparation, architectural designs, permits, and other related fees.

From time to time, funds for this program run out, but as of this writing, the State provided an additional $25 million in funding. This is not a lot of money and is likely to be used up relatively quickly, so don’t wait to get started on your project.

Homeowners interested in these grants should contact me for the latest guidelines and eligibility criteria.


Link: What are ADUs and why are they so popular?

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