CalHFA ADU Grant Program
The California Housing Finance Agency's (CalHFA) ADU Grant Program provides up to $40,000 for preconstruction costs associated with an ADU.
To qualify, the homeowner must first obtain a loan from a CalHFA-approved lender.
You also need to meet the income range, which varies by county.
Here are the steps in order to qualify!
- The homeowner needs to pull a construction or renovation-type loan. This is because the program is designed for homeowners who need financial assistance. Pre-approved lenders link is provided below:
- Once the loan is approved, the lender will forward your paperwork to CalHFA. If it is approved, $40,000.00 will be added to the pre-existing loan funds. We do want to clarify that the $40,000.00 will not be handed to you.
- If the application process is successful, the following will be made available to you:
- $40,000 from CalHFA's grant that will only cover pre-construction costs.
- $X amount from the lender that will be used to cover construction costs.
The million dollar question you may be wondering is: Who is eligible for the grant?
There are two primary requirements in order to be eligible:
- You need to live at the property where the ADU is being built.
- You need to meet the income limits. Income eligibility requirements vary by county. A list is provided below for your reference:
What exactly does the grant cover?
Earlier we stated that the funds would only be applicable for pre-construction costs (also known as soft costs)
We want to clarify what those types of costs are to prevent any confusion.
- Pre-construction costs include the following:
- Architectural or Engineering Plans - these are the plans that will determine how your ADU will be designed.
- Permits/City Fees - permits are issued by your local city or county in order to obtain permission to build your ADU.
- Soil Reports/Inspections - If required, the soil report will help determine the integrity, strength and other factors of the land where your ADU will be built.
- Impact Fees - these fees are paid to the municipality. They offset the financial impact of the new development on public infrastructure.
- Topographical Survey - This report will be used to determine boundary lines and other restrictions of your property so the ADU is not obstructing or encroaching anywhere it shouldn't.
- Energy Reports - These reports will give information about the ADU's energy use. The most common report requested for ADU's in the State of California is Title 24.
The grant cannot be used for construction costs such as material or labor.
What if the preconstruction costs are less than $40,000.00?
If your pre-construction costs end up being less than $40,000, the remaining funds can be applied to non-recurring closing costs.
Non-recurring closing costs are costs that are only paid once, for example loan fees and interest rate buydowns. This will help lower your interest for the loan.
What if you already paid out of pocket for these costs?
Unfortunately, if you already spent out of pocket for these types of costs, the money cannot be reimbursed to you.
However, the grant money can be applied by your lender to reduce the loan principal.
Please remember to save your receipts. You need them in order to send them to your lender to reduce your loan principal.
This will reduce the amount you need to pay back for the loan.
Create Additional Living Space on Your Property
Come to us for garage conversion services in Los Angeles, CA
Many property owners have wasted space in their garages that could be used for something wonderful. At Omega Structural, Inc., we want to help you maximize your property value with an accessory dwelling unit (ADU). This is a secondary living space on your property, such as a guest house or mother-in-law suite, that can boost your property value and increase your home's square footage.
An ADU installation requires professional skill, which is where we come in. Our structural engineer will work with you to design the space and take care of all your garage conversion services for you.
Reach out to us today to set up service in Los Angeles, CA.
ADUs come with many benefits
There are so many reasons to invest in an ADU. An ADU installation can give you...
Extra income. You can rent out the space for an additional income stream.
Increased property value. More square footage can boost your property value.
Additional space. It's easy to host guests and family with an on-site ADU.
Get started by scheduling garage conversion services for your property today. You can reach us at 323-373-5964.
ADU 101: Learn about the different types of builds you can construct on your property
AN ACCESSORY DWELLING UNIT (ADU) IS A LEGAL AND REGULATORY TERM FOR A SECONDARY HOUSE OR APARTMENT THAT SHARES THE BUILDING LOT OF A LARGER, PRIMARY HOUSE.
An accessory dwelling unit, or ADU, is an additional residential building that occupies the same lot as a primary residence.
Examples of an ADU could be a guest house or a detached garage with a rented apartment above.
The establishment and use of an ADU will fall under different zoning rules and regulations depending on where you live.
These are some of the following Standard ADU's that you are eligible to build in the City of L.A:
Detached ADU. A detached ADU is built in the backyard of a main home. It can be used to rent out, as a guest house, or whatever suites your needs. It is almost like having a smaller home in your backyard.
Attached ADU: An attached ADU is the same as a detached ADU, except that it is attached to the house.
Garage conversion. A garage conversion turns an existing garage, whether attached or detached to the home into a livable space.
Carriage house conversion. Similar to a garage conversion, carriage houses are built within a garage with high ceilings. Typically, the downstairs area remains being a garage, while the area above the garage is transformed into an apartment.
Home addition. Additions can be built as separate living units in the home. They increase the square footage of your home and can be built as a one- or two-story structures. There are a number of different type of additions such as:
- Room additions
- Conventional addition
- A second floor added on top of an existing home is also considered an addition.
Junior ADU: Junior ADU's are limited to about 500 square feet. A JADU must in proximity or attached to a proposed or existing single-family home or for example a garage or an attic/basement (also known as an in-law suite). JADU's can share the restroom with the main home and only need to meet the "efficiency kitchen requirements."