Flexible options for funding your ADU, whether you need financing or not
As a nonprofit corporation, CCEDA is proud to be one of CalHFA’s preferred partners offering the $40,000 ADU grant.
Qualifications for the CalHFA grant
Property must be owner-occupied
Income must fall within the limit for your county
Property must be a single-family home or 2-4 units
Whether you have all the funds or need financing, we've got you covered
Through CCEDA you can apply for the $40,000 CalHFA ADU grant, whether you have all the cash needed for your ADU project or if you require a loan to help bridge the gap.
If you have the cash and / or existing loan proceeds in hand to pay for your entire ADU budget, you can now utilize those funds to pay for your ADU and utilize the CalHFA ADU grant to cover your eligible predevelopment costs. We will place your funds into a managed escrow account along with the grant proceeds for safe dispersement to approved 3rd party vendors throughout your ADU project.
If you require financing to help bridge the gap between your current cash resources the CalHFA grant, and your final project budget, we offer second mortgages through pre-approved lenders. A benefit of acquiring financing through a CCEDA pre-approved lender is you can utilize the grant funds to pay non-recurring closing costs such as lender origination fees, escrow and title fees, or even buy down the interest rate of your loan. CCEDA will oversee payments to vendors during the entirety of your ADU project.
Contact Us
Please read our FAQs below to see if your question has already been answered before contacting our Support team.
Email us at
advocate@adu-cceda.com
Click “Contact Us” in the bottom right to send a message
Call us at
(855) 400-0048
Note: You will receive the fastest response via Email or “Contact Us”
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Frequently Asked Questions (FAQs)
General Questions:
At this time, grant reservations are currently paused per CalHFA guidelines. We will keep you updated as we find out more information as to if, and when, we may resume. All new applications will go into our waitlist in the order received.
Accessory Dwelling Units (ADUs) have been known by many names: granny flats, in-law units, backyard cottages, secondary units and more. No matter what you call them, ADUs are an innovative, affordable, and effective option for adding much-needed housing in California.
Yes, the grant is free, you do not have to pay it back. However, you will receive a 1099 for the year the grant funds were wired into escrow, meaning you may need to pay taxes on the utilized grant funds the following year. Check with your accountant or CPA to better understand your potential tax liability given your unique circumstances.
We will process the grant applications in the order they are submitted. You can ensure timely processing by submitting your employment and financial documents as soon as they are requested. Rest assured, we will keep you informed at each step of the application process. The quicker you respond to requests for additional information, the sooner your application will be approved.
Grant Qualification and Uses:
The ADU grant can be used to pay pre-development costs associated with the construction of the ADU. Pre-construction includes all site prep, architectural designs, permits, impact fees, property survey, energy reports, soil tests, demolition, utility connections, tree removal, and other necessities before the actual build of the ADU. It can also be used to buy down the interest rate (a non-recurring closing cost)if you receive a loan through a CCEDA pre-approved lender.
The grant cannot reimburse you directly, but it can be used to pay invoices. If your vendors provide an invoice for the amount you have already paid them, the escrow account can pay this invoice. You may either submit the original invoices for payment (and deal with the vendor directly to be reimbursed your original payment to them) or CCEDA will authorize directly payment to your lender to pay down the balance any loan or HELOC used to make those initial payments.
Most hard construction costs (foundation, framing, finishes, fixtures, and all other construction wages and materials, etc) are not covered by the grant. Neither is solar.
No, this is for owners of primary residences only.
If it is a modular home that is permanently affixed to a foundation and permitted by the city as an ADU, then yes, it would qualify for the grants and traditional home financing. If on the other hand, it is a HUD-manufactured home on a chassis, then you will need to check with your local municipality (city or county) to see if a manufactured home can be permitted as a legal ADU. Any legally permitted ADU would qualify for the CalHFA ADU grant covering pre-construction costs.
Whoever is on the title must be included in the application. There is an option for a gift letter that you can show where the funds for the ADU are coming from, so if you are paying for the ADU construction, you can gift those funds to your parents who are on the title. Their income would be used to qualify for the ADU grant however.
No, you can only receive the grant where your primary residence is. You cannot receive two grants as you must live on the property where the ADU is being built. You may live in either the home or the ADU.
Financing Questions:
Through CCEDA you can apply for the grant and, if financing is needed, with your consent your application will be shared with our approved lenders who will work directly with you on your loan. You may also apply for financing with any lender of your choice and once you receive your loan, transfer those funds along with your other cash into the managed escrow account.
You do not need a loan when applying with CCEDA, however you are required to show that you have all funds secured to complete your ADU project based on the project budget, including pre-construction expenses. if you end up needing a loan, our preferred lenders can help get you a loan at a good rate and your loan fees can be paid directly form the grant.
Questions about the Application:
Please disregard these pending docs, they are for our staff to review when looking over your application. Only owed docs are what we need from you.
This means your funds have been reserved! Our grant officers still need to review your file to make sure all documents are correct and completed. Once they have been accepted, they will be in contact with you regarding funding. During this time please upload a contractor’s bid and pre-development cost breakdown for your project, if you haven’t already, as they are requirements by CalHFA to receive your grant funds.
For more details on what to expect during the application process, visit our Next Steps page.
Please look at your spam folder as they can be received there. You will receive milestone emails as our staff is reviewing your file. Otherwise, please email us at advocate@adu-cceda.com.
Please note the application is made for those who need a loan as well as those who do not. If these questions do not apply to you, please leave them blank. All questions with a red asterisks must be filled out in order to submit your application.
You’ve submitted the necessary documents to reserve your grant. Please note that reservations are paused at this time, but we are still actively reviewing documents. This will allow us to reserve your funds if, and when, reservations resume.
All pending documents will be reviewed by our reservation team and accepted once verified. For more details on what to expect during the application process, visit our Next Steps page.
Escrow and Receiving Your Funds:
Yes, when you are ready to receive your funds, all budgeted funds for your ADU need to be funded in the escrow account before you can pay any contractor invoices. You may begin by depositing a minimum of $40,000 in order for Fund Control to begin paying your ADU Grant authorized pre-construction expenses. Once you have your permit and are ready to begin construction you will need to deposit the balance of funds required to complete the project per the signed contractor agreement for Fund Control to begin making the scheduled draws and payments to the contractor.
Any remaining grant funds after you receive your Certificate of Occupancy will be returned to CalHFA’s grant fund. However, there are plenty of opportunities to utilize the funds including applying them to non-recurring closing costs such as paying down your interest rate.
During Construction:
Yes, you can self-manage your project. This means that the owner will act as the general contractor. All subcontractors must be vetted, licensed, and insured. There would be a $475 fee for each of these subcontractors if they are not CCEDA pre-approved. These fees would be paid from grant proceeds.
You still need a complete budget for the project. You would need to assemble all your subcontractor bids for the project as well as city and permit fees. Your best option would be to get an ADU Project Feasibility Report from our approved partner, HOMEPLEX, ADU specialists. This can provide the bid and budget needed to get your funds awarded from CalHFA.
All contractors must be paid from the escrow account. The owner may manage the building project and the owner may bring their own licensed contractor(s) to the project or use one of our vetted contractors. All vendors must be licensed, bonded and insured.
The first licensed contractor (GC) review and approval is included in CCEDA’s $5,000 administrative fee.In the event you are self-managing your project, each subcontractor must be reviewed and approved for a fee of $475. These fees would be paid from grant proceeds.
