Opening Doors: CALHFA's ADU Grant Program Paves the Way for Affordable Housing in California! | Steve Williams | Blog

CALHFA is excited to support the building of accessory dwelling units in California with our ADU grant program.

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​​The program provides up to $40,000 to cover pre-development costs or non-recurring closing costs for building an ADU.

The grant can be used for an interest rate buy down to make the financing more affordable.

This applies to borrowers doing a renovation-type loan to build an Adu on their owner-occupied property.

The lender must establish a construction escrow account and manage the draws to ensure the Adu is built.


The program is not limited to a specific loan type; it can be done on any loan through a participating lender with an escrow account.​​​​​​​

It's a grant, not a loan, so there's no lien, and it does not have to be paid back.

The program is for low-income Californians, so borrowers need to be within CALHFA's published income limits.

The lender must be participating with us in the program, and for already CALHFA approved lenders, executing the Adu participation agreement is required.



For more information on the Adu grant program, including the lender participation agreement, required forms, and the term sheet, please visit the website at

Click on "Lenders & Real Estate Agents," then the "Loan Program Information" tab, and scroll to the "Special Program" section.​​​​​​​


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