I have dealt with the construction of ADUs for over two decades, and have seen the transformation of California’s housing market. The California Housing Finance Agency or CalHFA has been the lead agency in funding affordable housing efforts and is leading through the ADU Grant Program that has sharply helped in striking the housing deficit out in the state.
Otherwise known as granny flats or in-law units, Accessory Dwelling Units add up to the once exotic but now essential part of California’s housing plan. I have managed the construction of over five hundred ADUs across the state and have realized how programs like this CalHFA are critical or decisive in a homeowner’s choice to build.
The changes in the 2024 ADU Grant Update are quite different from what the state has offered for ADU loans before. These changes are soon expected to affect not only those who are currently applying for a permit to design and/or develop an ADU for a property but also those who are currently considering doing so. Being in the position where I have helped many clients go through this process, I will say that such changes should not be taken lightly.
Where The ADU Grant Program Started
The CallHFA ADU Grant Program was adopted in 2019 to support the state’s Affordable Dedicated Unit or ADU grant program due to the increasing housing shortage. During the first year of the implementation of the program, the grants were issued to 150 homeowners and with an average of $25000 a grant. Since then, the program’s coverage has continued to grow as has its financial endurance power and strength.

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Key Updates in 2024
The pilot $100 million for the program was exhausted a few months ago. After that, Governor Gavin Newsom and lawmakers have been in a constant disagreement as to whether $50 million for ADU financing should be added to the program since it was in the 2023 budget.
In July 2023, a budget bill that was approved by Newsom guaranteed the return of the $50 million. However, Chairman Phil Ting (D-San Francisco) now wants to amend said bill and use half of that amount to restart the grants program for ADUs before the bill progressed.
The money meant for financing ADUs is still uncertain due to a stand-off by lawmakers and CalHFA regarding its application.
As more homeowners engage in the construction of ADUs, more lenders express their interest in the subject. Initially, when dealing with the plan to redirect the $50 million, Ting wanted to redirect all the funds. Now he agrees that he would instead direct $25 million of the funds to other programs and then reduce the ADU grant program to $25 million.
Today, based on the current income restrictions for borrowers, in Los Angeles County people with up to $194,000 annual income are eligible for the grant. Chairman Phil Ting (D-San Francisco) has said that he is to suggest a lower limit to make the grant program more directed at financially vulnerable homeowners in California who can hardly afford the construction of ADU.
Those for the grant program have strongly argued that it indeed helps the borrowers who require it. For example, the California Community Economic Development Association and Homeplex– an organization that helped in issuing ADU grants, reports that close to 60% of the people they have helped belong to low-income earners making less than 80 percent of the median income in their area.
Stay Up To Date on CalHFA
Being an ADU professional, it is critical for me to monitor such changes so that I can offer the best services to clients. The modifications in the CalHFA ADU Grant Program for 2024 have become a chance for many residents of California to become ADU owners.
The 2024 CalHFA landscape is changing constantly. Nobody knows when lawmakers will come to an agreement with one another, but things are surely to get shaken up when they do. I encourage you to stay up to date on the lawmaking surrounding this program. If the program gets funding again, the application process is going to be intense, and you will want to be first in line to get your ADU grant funding.
Always feel free to reach out to ADU professionals like me to ask about the current state of the funding. We are always happy to help.
Conclusion
The modifications of the CalHFA ADU Grant Program for 2024 are one of the significant moments in California’s housing strategy. Whether or not the program will receive funding is huge for homeowners looking to add to the housing availability.
Having been in this industry for two decades, I was looking forward to what these updates would bring in. ADUs are not only extra bedrooms and/or cooking facilities; they help to build to provide lodgings for low-income families and to have property valuation changes in the right direction.
I urge all California homeowners to consider this opportunity if it comes to fruition. The funding that might be available can make what probably will be considered a dream project a possible reality.
Of course, don’t forget the following golden rule: know the facts. If properly managed, you might be among those who are contributing to the much-needed housing in California while at the same time adding value to your home and to your family.