California Community Economic Development Association Facilitates Over $6 Million in ADU Grants for Low Income Homeowners
Los Angeles, CA (February 27th, 2023) – The California Community Economic Development Association (CCEDA), in collaboration with the California Home Financing Agency (CalHFA) has announced the funding of more than 150 grants to California homeowners under CalHFA’s accessory dwelling unit (ADU) grant program. The program provides grants of $40,000 to qualifying homeowners to fund pre-construction costs associated with the construction of ADUs. The total amount of grant funding provided to these homeowners exceeds $6 million.
54% of CalHFA ADU Grants managed by CCEDA have been awarded to homeowners identified as Low-Income Households within their counties. ADUs provide an affordable and effective solution to increasing housing availability, while also increasing property values and generating additional income through rent for low-to-middle income homeowners.
CalHFA has identified ADU construction as a key strategy in addressing California’s ongoing housing shortage. Roberto Barragan, Executive Director of CCEDA, said, “ADU construction addresses two critical social issues, mediation of California’s housing crisis, and wealth creation among low-income families. This dual emphasis is well-aligned with CCEDA’s mission to use economic development strategies to lift families in marginalized communities out of financial stress. The CalHFA ADU Grant Program has proven to be an effective way to create affordable housing, particularly in urban areas where land values are at record highs. We strongly recommend the continuation and expansion of CalHFA’s ADU Grant program.”
CCEDA’s ADU grant efforts are facilitated as part of a strategic partnership with HOMEPLEX, Inc. HOMEPLEX is a California public benefit corporation dedicated to addressing housing affordability and promoting the building of mutigenerational wealth and financial security for California’s 14 million homeowners. HOMEPLEX provides pre-development consulting services, grant administration support, and financial guidance.
“Construction of ADUs provides the fastest immediate solution to that problem and helps low- and moderate-income homeowners create a valuable secondary income source.” Said Barragan.
The grant, which does not have to be repaid, provides up to $40,000 for pre-development and non-recurring closing costs associated with the construction of the ADU. Pre-development costs include site prep, architectural designs, permits, soil tests, impact fees, property survey, and energy reports.
The CCEDA-HOMEPLEX partnership offers these services to government and non-profit organizations throughout the state who wish to address housing issues through creative solutions.
“We at HOMEPLEX believe that the development of ADUs provide the quickest path to creating missing middle housing to the LMI communities who need it most. CalHFA’s ADU grant program, as implemented by CCEDA, has been a catalyst in providing critical resources at the beginning stages to those households who would otherwise not be in the position to build financial security using this most accessible ADU tool.”, Ari Gati, CEO of HOMEPLEX, Inc.
The initiative’s third partner, the strategic planning firm McIntyre-St. Clair, provides program management and strategic support for the CCEDA grant program.
Inquiries regarding this initiative should be directed to Don@cceda.com
Founded in 1989, California Community Economic Development Association (CCEDA) is a statewide association of non-profit organizations in the community economic development field. CCEDA offers technical assistance and education designed to serve our membership — organizations actively engaged in revitalizing California’s neighborhoods of color.