Program Overview
The California Housing Finance Agency (CalHFA) ADU Grant Program is a statewide initiative that provides qualifying homeowners with up to $40,000 in grant funding — not a loan, not a deferred payment, but a true grant with no repayment obligation — to offset the upfront costs of building an Accessory Dwelling Unit (ADU).
The program was created in direct response to California's housing shortage. By reducing the financial barrier to ADU construction, CalHFA aims to accelerate the creation of new housing units across the state. For Los Angeles County homeowners, the grant can cover the most expensive early-stage costs: architectural design, engineering, permit fees, soil tests, impact fees, property surveys, and energy reports.
The grant is administered through a network of CalHFA-approved lenders. Homeowners apply through these lenders, who manage the disbursement of funds through a construction escrow account as the project progresses.
What the Grant Covers
The CalHFA ADU Grant is specifically designed to reimburse pre-development costs and non-recurring closing costs. These are the expenses that homeowners must pay before a single shovel of dirt is turned — costs that often total $15,000–$30,000 and represent the biggest barrier to getting an ADU project started.
| Eligible Cost | Description | Typical Range |
|---|---|---|
| Architectural Design | Schematic design, construction drawings, structural plans | $8,000 – $18,000 |
| Engineering | Structural, civil, and geotechnical engineering reports | $3,000 – $8,000 |
| Permit Fees | City/county building permit application fees | $5,000 – $15,000 |
| Soil Tests | Geotechnical investigation and soil report | $1,500 – $4,000 |
| Impact Fees | School, transportation, and utility connection fees | $3,000 – $10,000 |
| Property Survey | Boundary and topographic survey | $1,500 – $3,500 |
| Energy Reports | Title 24 energy compliance documentation | $500 – $1,500 |
| Closing Costs | Non-recurring lender closing costs for the construction loan | $2,000 – $5,000 |
Eligibility Requirements
The CalHFA ADU Grant has five core eligibility requirements. All five must be met — there are no partial grants for partial eligibility. Applications are processed on a first-come, first-served basis when funding is available.
Owner-Occupancy
You must own the property and live in it as your primary residence at the time of application. Investment properties, rental properties, and properties held in the name of a corporate LLC are not eligible. You must sign a CalHFA Applicant Affidavit confirming owner-occupancy and agree to continue living on the property throughout the construction process.
Property Type
The property must be a single-family home (1 unit) or a multifamily building with 2–4 residential units. The ADU must be built on the same lot as your primary residence. Condominiums and properties in planned unit developments (PUDs) may face additional restrictions depending on HOA rules and CC&Rs.
Income Limits
Your household income must fall within CalHFA's income limits for your county, based on a percentage of the Area Median Income (AMI). In LA County, the program has historically used 80%–120% AMI thresholds depending on the funding round. Income is verified through recent pay stubs, W-2 forms, and/or federal tax returns.
Creditworthiness
Because the grant is disbursed through CalHFA-approved lenders, you must qualify for a construction loan from one of those lenders. This requires demonstrating creditworthiness — typically a minimum credit score in the 640–680 range, though individual lenders may set higher thresholds. Your debt-to-income (DTI) ratio and overall financial profile will also be evaluated.
Zoning Compliance
Your property must be zoned to allow an ADU under local and state law. California's ADU-enabling legislation (AB 68, AB 881, SB 13, and subsequent bills) has dramatically expanded ADU rights statewide. Most single-family lots in LA County qualify under these state laws, even if local zoning previously prohibited ADUs.
LA County Income Limits
CalHFA's income limits are based on the Area Median Income (AMI) for each county, updated annually by the California Department of Housing and Community Development (HCD). The ADU grant program uses a "low-to-moderate income" threshold — in high-cost counties like Los Angeles, this encompasses the majority of working homeowners.
The table below reflects approximate income limits for LA County based on CalHFA's 2025 guidelines. These figures are updated periodically — always verify current limits at calhfa.ca.gov or with an approved lender before applying.
| Household Size | 80% AMI (Low Income) | 120% AMI (Moderate Income) | Approximate Annual Limit |
|---|---|---|---|
| 1 person | $66,250 | $99,350 | ~$99,350 |
| 2 persons | $75,700 | $113,550 | ~$113,550 |
| 3 persons | $85,150 | $127,750 | ~$127,750 |
| 4 persons | $94,600 | $141,900 | ~$141,900 |
| 5 persons | $102,200 | $153,300 | ~$153,300 |
| 6 persons | $109,750 | $164,600 | ~$164,600 |
| 7 persons | $117,300 | $175,950 | ~$175,950 |
| 8 persons | $124,850 | $187,250 | ~$187,250 |
Property Requirements
Beyond owner-occupancy, the CalHFA ADU Grant imposes specific requirements on the property itself. Understanding these requirements before applying can save significant time and prevent a rejected application.
Property Must Be in California
The program is exclusively for properties located within the state of California. There is no restriction on which county, city, or neighborhood — any California property that meets the other criteria is eligible.
Single-Family or 2–4 Unit
The property must be a single-family home or a residential building with 2–4 units. Large multifamily buildings (5+ units) are not eligible for this grant program.
ADU Must Be New Construction or Conversion
The grant covers both new detached ADUs and conversions (garage, basement, or other existing structure). The ADU must not already exist — the grant is for new ADU creation only.
Certificate of Occupancy Required
A Certificate of Occupancy must be provided upon completion of the ADU as a condition of the grant. This ensures the unit meets all local building codes and is legally habitable.
Must Work With Approved Lender
The property transaction (construction loan) must be financed through a CalHFA-approved lender. The grant is not available for cash-pay projects or projects financed through non-approved lenders.
No Existing ADU on the Property
The grant is intended to incentivize new ADU creation. Properties that already have a permitted ADU may not qualify unless the project involves a second, additional ADU.
Credit & Loan Requirements
The CalHFA ADU Grant is disbursed through approved lenders, which means you must qualify for a construction loan as a prerequisite to receiving the grant. This is a critical distinction — the grant does not replace the need for financing; it reduces the upfront costs associated with obtaining that financing.
| Requirement | Typical Threshold | Notes |
|---|---|---|
| Minimum Credit Score | 640–680 | Individual lenders may set higher minimums |
| Debt-to-Income Ratio | ≤ 45% | Some lenders allow up to 50% with compensating factors |
| Loan Type | Construction loan | Must be through a CalHFA-approved lender |
| Lender Approval | Required | List of approved lenders at calhfa.ca.gov |
| Documentation | Full doc required | Pay stubs, W-2s, tax returns, bank statements |
Application Process
The CalHFA ADU Grant application is submitted through an approved lender — not directly to CalHFA. The process involves four key steps, and having your documentation ready before you start will significantly speed up the timeline.
- Proof of property ownership (deed or title)
- Proof of California residency (utility bills, driver's license)
- Income documentation (pay stubs, W-2s, or tax returns for the past 2 years)
- Preliminary ADU plans or design intent documents
- Zoning confirmation or local permit pre-application
- Signed CalHFA Applicant Affidavit and Certification
- Access the approved lender list at calhfa.ca.gov
- Contact multiple lenders to compare construction loan terms
- Get pre-qualified for the construction loan amount you need
- Confirm the lender is actively participating in the ADU Grant Program
- Complete the grant application form with your lender
- Submit all supporting documents
- Lender submits the package to CalHFA for review
- CalHFA may request additional information during review
- Upon approval, lender sets up a construction escrow account
- Grant funds are disbursed as pre-development costs are incurred
- Construction proceeds according to approved plans
- Certificate of Occupancy submitted to CalHFA upon completion
Current Program Status
While the current round is closed, the program has been funded multiple times since its launch. Homeowners who prepare their eligibility documentation now will be positioned to apply immediately when the next funding round opens. Key actions to take today:
Check Your Eligibility
Use the interactive checklist below to quickly assess whether you meet the core CalHFA ADU Grant eligibility criteria. This is not a formal application — it is a preliminary self-assessment to help you understand your position before speaking with a lender.
Check Your Eligibility
Answer 5 quick questions to see if you may qualify for the CalHFA ADU Grant.
1. Do you own and live in the property as your primary residence?
Investment properties and rentals are not eligible.
2. Is your property a single-family home or 2–4 unit building?
Condos in HOA-restricted developments may face additional hurdles.
3. Is your household income within CalHFA's limits for LA County?
For a family of 4, the limit is approximately $141,900 (120% AMI).
4. Do you have a credit score of approximately 640 or higher?
Required to qualify for a construction loan through an approved lender.
5. Is your property zoned to allow an ADU under California state law?
Most LA County single-family lots qualify under state ADU laws.
Answer all 5 questions above to see your eligibility result.