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CalHFA ADU Grant Phase 2 is finally rolling out! How to apply

Updated: Aug 8, 2022

We are finally rolling out Phase 2 of the CalHFA ADU Grant which provides homeowners with funds to cover the soft costs of ADU development, including:

  • Permits

  • Designs

  • Soils test, engineering, etc.

  • Non-recurring loan costs including discount points

Please note this is ONLY for homeowners (not rental properties) with net income within the 2022 Income Limits for the grant. No exceptions, don't ask, don't make it weird.

The first step in the loan process because we are required to use loan documentation to verify much in the grant application, and you MUST have construction financing underway or completed. It's very important that you watch the following video to understand what's involved

When you have the loan underway, you can also get started on the grant application with HPP Cares, the nonprofit HUD Counseling Agency who administers the grant funds. In that portal, you will initially need to initially upload any documents you have available:

  • Designs

  • Permits

  • Final construction budget

  • All receipts for soft costs

  • Bank statement where the construction funds are – or a loan estimate if you are in process.

At this point, we will ask CalHFA to reserve your grant funds. Once your loan is complete and you add your construction funds to the escrow account with HPP Cares, then the grant funds will be placed in the escrow account and payments will be made.

Please understand that you are among the very first users of this process, and there may be some glitches. Your grace and feedback are greatly appreciated while we get you that grant money! As always, please let us know if we can answer any questions.


Can any loan be used with the grant? Yes, and even cash. We are the preferred lender, however, and we are required to validate grant information through the loan process.

Can investors and rental properties qualify for the grant? No, no exceptions. Don't make it weird.

Can the grant apply to both an ADU and JADU? Yes, but you can get no more than $40,000.

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