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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.
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!
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.
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.
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.
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.
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!
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!
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!