ADU Grant Program

Over the past several years, California’s housing production has not kept pace with market demand. The lack of housing has caused soaring prices, where homes are even available, or has left Californians with no choice but to commute much further out from where they work to find suitable housing. Housing alternatives, such as Accessory Dwelling Units (ADUs), are on the rise to assist with the housing shortage outside of just relying on traditional construction models.

New funding laws also went into effect that incentivized and promoted the creation of ADUs also known as granny flats, in-law units, backyard cottages, or secondary units. ADUs are an innovative, affordable, effective option for adding much-needed housing in California.

CalHFA’s ADU Grant Program has already created more housing units in California by providing grants up to $40,000 to reimburse pre-development and non-recurring closing costs associated with the construction of an ADU. Pre-development costs include site prep, architectural designs, permits, soil tests, impact fees, property surveys, and energy reports.