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$40,000 calgrant for ADU Builders. Grant ends in 2023.

Updated: Jul 25, 2023

Did you know that California is offering a fantastic incentive of $40,000 to individuals building an ADU (Accessory Dwelling Unit) within their property? This limited-time program is expected to last until January 2023. Given the housing crisis in California, Governor Newsom signed a bill to fund ADU projects in the state, making it accessible to a wide range of people, including those earning less than $200,000 annually. To find out more about the requirements and application process, interested individuals can visit the website

The $40,000 grant is intended to cover soft construction costs, such as permits, planning, impact fees, and related expenses. After carefully planning with your builder, you'll need to reach out to an authorized loan officer to get approval for the Cal grant. Once approved, Calhfa will deposit the funds into a managed money account, which the lender/loan officer will use to control the flow of funds to your chosen developer. It's important to note that the funding will be directed to the construction team and not directly to the homeowner.

If you're considering applying for the grant, make sure to have essential documents and information ready when contacting a loan officer. This includes pay stubs, bank statements, employment history, and previous tax returns. These details will help answer any questions they may have during the application process.

Some people may wonder if they are eligible for the grant if they have already completed an ADU recently. While the answer might be somewhat complex, it doesn't hurt to inquire about your specific situation. Similarly, if you are currently in the middle of construction and have already paid the soft costs, you can still apply, and they may offer a credit for your ADU.

The credit for these ADU laws goes to Senator Bob Wieckowski, who played a significant role in their implementation. His bills have encouraged California cities to be less restrictive on homeowners, and this ADU grant is yet another valuable bonus for Californians looking to address the housing crisis and improve their property options.

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