ADU Information
New ADU funding laws effective January 1, 2021
The California Health and Safety Code (HSC), Section 65583(c)(7), requires that cities and counties develop a plan that incentivizes and promotes the creation of ADUs that can be offered at affordable rent for very low to moderate-income households.
HCD has developed a list of existing state grants and financial incentives in connection with the expenses for the planning, construction and operation of an ADU with affordable rent for very low to moderate- income households.
The objective of the Accessory Dwelling Unit (ADU) Grant Program is to create more housing units in California by providing a grant to reimburse homeowners for pre-development costs associated with the construction of the ADU.
Income Qualification Calculators*
Borrower(s) income < 80% AMI per Fannie Mae lookup tool
Borrower(s) income < the CalHFA Income Limit and property is located in a qualified census tract
Borrower(s) income < the CalHFA income limit and the CLTV > 80%
*Must meet at least one of the above qualifications
