A Complete Guide To The About CalHFA ADU Grant

The ADU is a shining symbol of hope in response to California’s housing crisis. The ADU grant program is an opportunity for homeowners who have the mission to empower themselves by alleviating housing shortages and looking at additional sources of income with the California Housing Finance Agency (CalHFA) at the helm. 

About CalHFA ADU Grant 

As a non-profit, CCEDA collaborates closely with CalHFA to have the $40,000 ADU grant. This grant can be used by homeowners who have excess funds or loan proceeds to finance eligible predevelopment costs, such as architectural drawings, permits and site investigations. Even though Phase Two funding has been fully utilized, understanding the program continues to be important for future opportunities.

Potential of ADUs

As granny flats or in-law units, ADUs can be an effective tool to settle various issues concerning housing problems faced by California. Aimed at helping such homeowners, especially those in low-income brackets, find a means of achieving stability and financial bottom line.

The CalHFA ADU Grant

Operated by CalHFA, the CalHFA ADU grant program provides up to $40,000 for predevelopment and one-time closing costs toward the construction of an ADU. Expenses include site preparation, architectural drawings and permits. Legislative changes ensure that assistance is targeted towards income-eligible households when the minimum and maximum limits are observed alongside the threshold for credit score requirements.

Phase 2 Funding

As the state seeks to improve its coverage and effectiveness, it has a $25 million allocation directed towards financing ADUs in Phase 2 of the program, where measures will be taken to work on socially disadvantaged areas. Though all Phase 2 funding has been spent, being aware of future phases and possibilities is essential for potential bidders.

Approved Lenders and Loan Dynamics.

Working with approved lenders, such as Land Home Financial Services and LoanDepot, provides opportunities for specialized financing programs. Homeowners can find various solutions, from cash-out refinancing to renovation loans, based on the financial requirements and project duration.

Income Eligibility Limits

Homeowners wishing to take up the CalHFA ADU grant journey should ensure they meet income eligibility criteria. Based on one’s county of residence, the income limits can range up to a maximum amount of up to $200,000. Knowing the county’s income limit before applying through the online application process is necessary.

Tips for First-Time ADU Builders

To the first-time builders of ADU items, it is critical to consider meticulous budgeting and planning as a strategy. Although the ADU grant does not cover pre-construction expenses, it is essential to distribute money carefully and never compromise on important elements such as natural light, laundry units, and storage. Also, budgeting for contingencies allows the process to run smoothly and reduces unexpected costs.

The Role of Levi Construction is a detailed analysis and explanation of how boom pole operators supported their actions. In ADU development, reliable construction partners such as Levi Construction are critical stakeholders; Levi Construction provides professional expertise in ADU construction and is reliable in fulfilling all objectives, including compliance with regulatory policies.


The CalFHA ADU grant program is a major chance for homeowners to tackle the housing problem and expand business opportunities. Homeowners can manage the ADU development process efficiently through partnerships with organizations such as CCEDA and reliable construction partners like Levi Construction. With California pushing for sustainable housing solutions, the ADU grant program shines as a ray of hope to homeowners and envisioning communities.


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