ADU Phase II – $25 Million grant fund for accessory dwelling unit taking applications December 2023

Published on

CALIFORNIA – The California Housing Finance Agency (CalHFA) announced Thursday that the Accessory Dwelling Unit (ADU) Grant Program Phase II will be accepting applications in December 2023. 

CalFHA estimates that the $25 million fund will provide 600 grants to ensure underrepresented low-income homeowners have opportunities to build wealth through homeownership.

New eligibility requirement

According to CalHFA ADU Grant Program Manager Cheryl Silva during Phase I of the program, 35% of the grant was distributed to low-income households. 

CalHFA wants to increase grant awards to this demographic.

“They would like to see us reduce the income limits from moderate income at 150% AMI to low-income at 80% AMI,” said Silva.  “In phase one we saw 35% or $35 million go to low-income homeowners so we do not have any concerns with distributing the full $25 million to low-income households.”

Phase I results

Silva said CalHFA distributed grant awards to 44 of the 58 counties in California.  

“Forty-two percent of the grants went specifically to LA County which we struggle sometimes to serve LA County with some of our other programs,” said Silva. 

Silva also said the grant performed well in LA county because the county has a high permit rate and an ADU-friendly permitting process.

In addition, Silva said CalHFA was very pleased to see that in the Black Community where homeownership rates are 5%, they awarded 9% of the ADU grants.

ADU Grant

The ADU Grant Phase I provided a $40,000 grant to low to moderate-income homeowners to construct an ADU –  a secondary housing unit on a single-family residential lot typically between 600 and 1,200 square feet.

Grant funds could be used for pre-development costs and closing costs including interest rate buydowns. 

For more information about the ADU program visit https://www.calhfa.ca.gov/adu/

RELATED: FHA changes policy to allow projected income from ADU to qualify for a mortgage

spot_img

Latest articles

Smoke advisory due to Vista fire in effect until July 10

SAN BERNARDINO COUNTY – The Mojave Desert Air Quality Management District (MDAQMD) is advising...

CA private industry lost 154,000 jobs while the public sector gained ​​361,000 jobs

CALIFORNIA – The California Legislative Analyst Office (LAO) published a report, July 1, with...

Victorville offering free kitchen food scrap containers for residents

VICTORVILLE – The City of Victorville, on July 8, announced that they would be...

Proposition 32 will allow voters to decide on $18 minimum wage for all California workers

CALIFORNIA – California voters will get to decide, November 5, on Proposition 32, a...
Powered by Foreclosure.com

More like this

Board of Supervisors requesting CA to declare a state of emergency for insurance crisis

SAN BERNARDINO COUNTY – The San Bernardino County Board of Supervisors passed a resolution,...

California gas tax to increase to 59.6 cents per gallon July 1

CALIFORNIA – The California Department of Tax and Fee Administration (CDTFA) announced to retailers...

CalHFA issues all 1,700 vouchers for down payment assistance program

CALIFORNIA – Governor Gavin Newsom announced, June 28, that 1,700 first-generation homebuyers have been...