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$40,000 ADU Grant — Free Money for Your ADU

What the CalHFA ADU grant covers and who is eligible.

Financing August 3, 2022 By Rob Berry 2 min read

A young couple cooking together in the kitchen of their ADU
Please noteThis article was published in August 2022. Grant funding, income limits and availability change — check CalHFA for the program’s current status before planning around it.

What is the CalHFA $40,000 ADU Grant Program?

The California Housing Finance Agency (CalHFA) offered homeowners a grant of up to $40,000 to help build an ADU on their property. Because it’s a grant, it doesn’t have to be repaid.

The grant covers pre-development costs, including:

  • Architecture and engineering fees
  • Permits
  • Property survey
  • Soils test

It does not pay for construction materials or labor. Still, it’s a significant opportunity for California homeowners who want to build an ADU.

Who is eligible?

  • Maximum annual borrower income of $180,000 for Los Angeles County residents and $235,000 for Orange County residents
  • You must be the homeowner and live in the home — investors are not eligible
  • You must be on the deed
  • You live in the main house during ADU construction
  • You live in either the main house or the ADU after construction

Want help understanding which grants and loans fit your project? Read our guide to financing an ADU or contact us for a free consultation.

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Published by Rob Berry · August 3, 2022← All ADU Insights

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