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Why Now is the Time for California Homeowners to add an ADU into their backyards: Get Your $40K Free State Grant

Adore Homes ADU inside

Right now, the state of California is offering homeowners a $40K grant for those who work with an ADU builder in Santa Clara County, or anywhere in the Bay Area. Given the state’s ongoing housing crisis, to help jump start more housing options, the state is offering this money up for grabs for those who join in providing a solution to a pressing potential problem many families are facing currently.

This article is intended to speak to those who are ‘on the fence’ when it comes to building an accessory dwelling unit (ADU), and to inform them more about this grant so they can make a more educated decision. After all, now is the time to buy! The funds allocated by the state to this Grant are limited and there is no indication that more funding will be available once the existing amount is fully distributed. In other words, it’s a first come-first serve situation so the sooner you apply – the better!

What is This $40,000.00 Grant for Building an ADU Called, and Who’s Offering It?

The name of this grant program is simply known as the CalHFA ADU Grant Program. Named for the California Housing Finance Agency, the very same organization offering the grant, CalHFA is an agency in the California state government dedicated to providing low-cost home financing to first-come homeowners and low-income individuals. However, while candidates for building an ADU are usually not considered to be “low income”, the state has determined the financial range one must fall into, and you may be surprised to learn that you qualify–a thing we will explore later. their ability to build an ADU with a $40K grant fuel their motivation would create an option for housing future persons in need. As the homeowner, you will always have the right to choose to who you rent your property, and you have the freedom to set the rental price for any amount of your choice. The state of California views ADU ownership as a potential solution for families to house their aging relatives, grown children, or family friends who are in the middle of making a transition in their life or career. The idea is that, rather than these people potentially taking housing from others who may not have families with ADUs, that by renting accessible dwelling units, more space is freed up in the market for renters with fewer options. 

Do Homeowners Have to Pay the CalHFA ADU Grant Back?

No, this is a grant, not a loan. This means that if you qualify and receive $40K to offset the investment cost of your new ADU, you will never have to pay back a single dime.

How is the CalHFA ADU Grant Funded?

Earlier this year, Governor Newsom passed a budget of $100 million in grants to help homeowners finance an ADU construction project. This means that the money will run out, so it is important that you get involved as soon as possible. This means that approximately two and a half thousand homeowners in California will be eligible, and the competition is tight.

Who Qualifies for the CalHFA ADU Grant?

To qualify for the CalHFA ADU Grant, you must be a homeowner in the state of California, and you, as an individual (not household combined) need to earn no more than $300,000.00 a year on average in Santa Clara and San Mateo counties (282,000 in Alameda County). However, certain counties have higher earned limits. For example, in Orange County, one can earn up to $235,000, and in San Francisco, Mateo, Marin, and Santa Clara one can earn up to $300,000 a year and still qualify for the CalHFA ADU grant. Be sure to check the requirements for qualifying for the CalHFA Adu grant, and contact Adore Homes if you need assistance in starting the application process. 

Is Building an ADU the Right Move for Me?

Of course, you should only apply for the CalHFA ADU grant if owning an ADU will add value to your life. Here are some of the top benefits homeowners enjoy who build an ADU:

  • Increase the resale value of your home and property
  • Make your listing more desirable when it does eventually go on the market
  • Earn rental income (great for seniors who want to stretch their earning portal in retirement years) 
  • Provide a guest house for friends and family
  • Use the space as a home office
  • Treat the ADU as a man cave
  • Turn the ADU into housing for your teen or adult child
  • Rent your ADU to local students or workers
  • If you live alone, rent the ADU to a person who will help you feel like you have added security to your property
  • Rent to employees in the nearby tech startups if you live in Santa Clara County
  • Provide a home for your aging parents
  • Use the ADU as a game room
  • Turn the ADU into your pool house

There are multiple ways in which an ADU can add monetary value to your property, while also providing multiple solutions to the lifestyle needs you are currently facing and will face in time. If you can see how an ADU can add value to your life and to your home’s resale value, call ADORE Homes and we will help you apply for the CalHFA ADU grant.

ADORE Homes Offers the Best ADUs in the Bay Area

If you live in Santa Clara County, San Mateo County, Alameda County or Contra Costa County or elsewhere in the Bay Area, contact ADORE Homes today and let us help you build the ADU of your dreams with a generous grant from the state to offset the investment. Our ADUs are designed in a custom approach to ensure the home matches the main home’s aesthetics and fits perfectly onto your property. We have several unique ADU styles ranging from modern to contemporary, and charmers that reflect the Cape Cod style, while still offering a unique touch in the design. We are also able to create any floorplan of your choice, and when it comes to fixtures and interior materials, we can keep things functional and highly durable for renters, or use the same kind of high-end counters, tiles and flooring found in the main home. 

Call ADORE Homes today and learn more about how we can help you qualify for the CalHFA ADU grant and build the best ADU to fulfill all of your needs while creating more functionality and options for your lifestyle and income potential.


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