CalHFA expects to provide granny flat grant to 2,500 homeowners and funding is depleted

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calfha adu grant 25K

STATEWIDE – California Housing Finance Agency (CalHFA) announced, Monday, that the Accessory Dwelling Unit (ADU) Grant Program will be fully committed by December 9, 2022. The program is expected to help 2,500 homeowners add an accessory dwelling unit to their property, in part, to help relieve the housing crisis in California.

The $100 million allocated for the ADU Grant program provided up to $40,000 grants to   reimburse homeowners for pre-development costs associated with the construction of the ADU.

CalHFA will pause the program on December 9, 2022, or when all funds have been committed, whichever comes first.



“This program has added additional affordable housing units in California, created income opportunities for homeowners and worked in conjunction with the lending community to provide additional financing types, expanded underwriting guidelines and escrow management services,” states the CalHFA announcement.

RELATED: CA Forgivable Equity Builder helps with 10% down payment on home

After the passage of Senate Bills 9 and 10, which legalized duplexes, ADUs, and small multifamily properties on lots previously zoned exclusively for single-family homes, CalHFA began offering the grant. 

The new laws came with controversy for some cities and homeowners.

SB 9 allows property owners to have two units on a parcel zoned for single-family housing — creating a duplex — and to split a residential parcel into two pieces. If the property owner used both provisions, something some experts believe is unlikely, a space that once hosted a single home could eventually hold four.

SB10 allows for cities to zone a parcel for up to 10 residential units if it’s located in a “transit-rich area” – a fixed-route bus line.  

According to Los Angeles Conservancy the laws “pose a one-size-fits-all solution and a blunt, statewide fix that would outstrip local authority and planning.”

Proponents of the bills have pointed to rising housing prices across California, arguing that the legislation increases supply and therefore helps to address the issue.


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