Unlocking Affordable Home Expansion: Your Guide to Securing the California ADU Grant in 2024

Great news for California homeowners! 🏡 The California Housing Finance Agency has rebooted its ADU Grant Program, injecting $25 million to assist lower-income homeowners with upfront costs for building accessory dwelling units (ADUs). 💰✨

This program offers a financial boost of up to $40,000, covering pre-construction expenses like planning and permit fees. However, with limited funding, the race is on, and demand is expected to outpace supply soon.

But wait, there's a twist! Securing this grant isn't a straightforward online form-fill. New income limits now require household earnings to be below 80% of the area median income, i.e., $84,160 in Los Angeles County. This adjustment aims to target those who need it most.

Applicants must also team up with a state-approved lender or "special financing participant," as the grants are paid directly to the lenders, not homeowners. The CalHFA website provides a list of 18 participating lenders and 10 government or nonprofit agencies, including Neighborhood Housing Services of Los Angeles County, specializing in affordable housing.

Getting your hands on this grant involves obtaining a construction loan for your ADU from a participating lender. This loan covers costs that the grant will later reimburse, such as architectural designs, permits, soil tests, impact fees, property surveys, energy reports, and utility hookups. These items can represent a substantial portion of ADU construction costs, especially for conversions like garages.

Even if you haven't started ADU work or secured a loan, you can still snag a spot in line for a state grant. Neighborhood Housing Services, a provider of ADU construction loans, is reserving potential grants for interested individuals. Just shoot them an email at admin@nhslacounty.org, including a current mortgage statement, one month's pay stubs, legal name, address, and Social Security number.

But hold on, there are a few hoops to jump through! Grant applicants must submit an affidavit to CalHFA, confirming they meet specific criteria, such as being a U.S. citizen or legal resident, using the ADU for permanent housing or long-term rentals, and adhering to local building and zoning codes. Falsifying these statements could lead to serious consequences.

Exciting times for homeowners eyeing an ADU venture – the grant is your golden ticket to turning that dream into reality!