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Everything you need to know about California’s ADU Grant Program in 2023
The ADU Grant Program provides up to $40,000 per homeowner that acts as a reimbursement credited towards the renovation loan of the entire project.
Get 40K and start building your ADU!
What is being offered in California’s ADU Grant Program, who qualifies, and what are the steps to qualify for the grant? It is our goal to assist in the approval process for qualified homeowners and streamline the pre-construction services for an improved and outstanding customer experience.
By: Eliana Lerma
Get up to $40,000 off your ADU Project!
Are you interested in building an Accessory Dwelling Unit, but wondering how you will afford it? Last October, the California Housing Finance Association (CalHFA) announced that they are offering $25 million in grants to residents of California who are ready to build an ADU on their property. This is enough to fund 600 ADUs across the state of California! The ADU Grant provides up to $40,000 per homeowner that acts as a reimbursement credited towards the loan of the entire project. It’s a grant, not a loan, so you don’t have to pay it back!
Why Build an ADU?
If you don’t know much about ADUs, here’s a brief description. They are fully functional living units built on the existing space of a property. ADUs are increasing in popularity because homeowners have seen the investment opportunity and want to be part of it. ADUs are providing homeowners with additional income by renting out the space and significantly increasing property value! Read more about what an ADU is and its versatile potential.
Why does the ADU Grant Program exist?
The main objective of the ADU Grant Program is to create affordable housing units in California. CalHFA Executive Director Tiena Johnson Hall states “California must make the most of every opportunity to build more housing for its residents, and the ADU Grant Program helps homeowners who want to invest in and share their property to help address a huge issue.”
In 2021, CalHFA received a total of $100 million to fund their Accessory Dwelling Unit (ADU) grant program. The state general fund provided $81 million, while CalHFA added $19 million from their own funds. The aim of the program was to provide a $40,000 grant to low and moderate-income homeowners to help them construct an ADU. The grant covered pre-development and closing costs, including interest rate buydowns, making it very popular.
The grants were distributed across 44 of the 58 counties in California, with 42% of the funds allocated to socially disadvantaged areas. Los Angeles County received the highest percentage of grants at 42%, due to its ADU-friendly permitting process, which performed well.
The program was designed to benefit low-income and very low-income borrowers, with over half of the grants distributed to the Black, Indigenous, and People of Color (BIPOC) community.
Requirements to Apply for the ADU Grant Program
If you want to apply for the 40K Grant, you need to meet the following requirements:
- You should be the owner and occupant of the property where the ADU will be constructed.
- Your household income must not exceed 80% of the area median income.
- Your property must be zoned for ADUs and should be a single-family home.
- There should be no outstanding liens or judgments against your property.
The applications for the ADU grant program will be considered on a first-come, first-served basis.
Income Requirements to qualify:
The income requirements are simple! The grant is offered to 58 counties across California and the maximum income number fluctuates by county. Take a look at this list where you will find the income limits per county.
What Costs Does the ADU Grant Cover?
The $40,000 offered is a reimbursement of pre-development and non-recurring closing costs associated with the construction of the ADU. What do these costs include?
Predevelopment costs include services like: Site preparation, architectural plans, design, permits, soil tests, impact fees, property survey, energy reports and everything else leading up to the construction of your ADU!
Build your ADU in So-Cal with Multitaskr
Multitaskr is a one-stop-shop for every homeowners' needs. We offer end-to-end ADU solutions ranging from estimation, design, financing, construction, landscape, solar, and more! As a top ADU builder in South California, we've helped homeowners create their dream projects, providing them with more living space, extra income, and added value. Our in-house solutions streamline your project needs from start to finish!
At Multitaskr, our products and services streamline the pre-construction phase. With pre-construction services typically coming at a high cost, showcasing the value included in this grant is crucial!
What Multitaskr Services are Covered by the Grant?
- Customized Financial Report (CFR): The report begins by running a soft-pull of credit history and provides an accurate estimate of a property’s current and future value. All of this data will ensure you are aware of all costs upfront to successfully finance the project!
- Home Diagnostic Report (HDR): Think of the Home Diagnostic Report as a home and site inspection taken out of a sci-fi movie! We send our HDR team to your property to gather all the data we need to ensure your project’s exact scope of work, detailed measurements, and advanced imaging to create the architectural drawings and a 3D model of your future project.
- Project Development Plan (PDP): The PDP is our most valuable tool, providing customers with all the necessary services to start building!
- 2D Floor Plan Layout: Our in-house architects provide a layout of your project including exterior and interior areas!
- 3D and Virtual Reality: We don’t just provide 3D renders. You can take a tour of your future project in lifelike virtual reality and customize your design!
- Scope of Work: We determine and document a list of specific project goals, deliverables, tasks, costs, and deadlines!
- Material List: Based on your project’s scope of work, we provide a detailed material list to complete your project design!
- Finishes Selection: Customize your design to your liking by selecting finishes that match your vision!
- Construction Estimate: We will provide an estimate based on accurate property measurements, material, labor, overhead, and profit!
How Do I Apply?
Applying for the grant is entirely FREE! It starts with a Project Consultation to get the information we need to approve you for the grant and begin the pre-construction stage.
Why not complete all of these services in one place? Our team specializes in the services that this grant covers. In addition, your entire journey will be alongside ADU experts who will guide you through grant application, feasibility, permitting, loan approval, architectural drawings, design, and finally, the construction of your dream ADU.
Book a free consultation with an ADU expert to discuss your project vision and provide the info we need to kick-start a fast application and get you approved for the grant!
Download the ADU Grant Qualification Guide and find out if you're elegible!
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We sent you a link to
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