How to Get Grant Money to Build Your ADU: The California ADU Grant Program
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What is the California ADU Grant Program?
Several solutions have been implemented to help address California’s housing crisis and create more affordable housing options for California’s low—to mid-income residents. Allowing Accessory Dwelling Units to be added to single-family residences are steadily becoming one of the most notable and widely utilized methods by homeowners all over the state.
Accessory Dwelling Units, or ADUs, are separate units that can be added to a property. They can range in size but are typically limited to 1,000-1,200 SQFT and can be either detached or attached to the primary residence.
They are a great option for both residents in need of affordable housing, as well as property owners looking to generate passive income. One of the ways in which California is encouraging and supporting property owners to consider building an Accessory Dwelling Unit on their property is through the California ADU Grant Program.
The Grant Program is designed to help cover the pre-construction costs up to $40,000 of building an ADU. Pre-construction costs include permitting, site prep, architectural drawings, project design, property surveys, energy reports, and utility hookups. If you receive a grant, Rost Architects Villa Plans are covered.
Because our plans are pre-designed and typically less expensive than a fully custom plan, the applicant could have more funds available to cover other pre-construction costs.
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Who qualifies for the ADU Grant Program?
Applicants must meet the program’s income limits, which are less than 80% of the area median income. In Orange County and Los Angeles County, the maximum income allowed to qualify for the ADU Grant Program is $84,160; in Riverside County and San Bernardino County, it is $75,600.
What restrictions will apply to my ADU as a grant recipient?
Applicants must own and reside on the property as their primary residence. Applicants are required to use their ADU for permanent or long-term housing and must conform to local building codes.
How do I apply for the ADU Grant Program?
In order to apply to the ADU Grant Program, you will first need a construction or renovation loan from one of the California Housing Finance Agency’s pre-approved lenders.
Once your loan is approved, the lender will provide your information to the program. If you qualify and are approved for the ADU Grant Program, $40,000 will be granted to your pre-existing loan funds.
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What if the program is no longer accepting applications or I don’t qualify? How can I afford to build a Rost Architects ADU?
Property owners have other options for funding their ADU Project. There are several types of secured loans available that can make your ADU project a reality:
· Renovation Loan
· Construction Loan
· Cash-Out Refinance
· Home Equity Loan
· Home Equity Line of Credit (HELOC)
California’s ADU Grant Program has proven to be a popular option, with 100 million in funds allocated in September 2021 and exhausted in March 2023. The program re-opened in December 2023 with 25 million in available funding, and funds were quickly fully allocated. However, it is anticipated that the program will receive additional funding and re-open to applicants. You are encouraged to join the waiting list.
If you are interested in learning more about Rost Architects' Accessory Dwelling Unit plans, click the button below to schedule a consultation with our team.
