ADU Grants & Loans

There are several financial incentives that property owners may utilize to help aid the construction of an ADU on their property. Please visit each website to determine if you qualify for available funding and to apply.  Property owners apply for these grants directly with the organization, not with the City.

OC Housing Finance Trust

The Affordable ADU Loan Program (ADU) offers eligible homeowners up to $100,000 construction loan at 0-3% interest rate to build an ADU, on the condition that it's rented to a very low-income neighbor for ten years. The loan is forgiven for each month the ADU is leased, and homeowners gain full ownership after the initial affordability period, with an option to defer repayment for another decade.

Website: 
https://ochft.org/affordable-adu-loan-program  

Program Brochure: 
https://drive.google.com/file/d/1Zb_dn4mX2iaK9GxB88rl5k1QK7dgSaLx/view

CalHFA  ADU Financing Program

The ADU Grant provides up to $40,000 towards pre-development and non-reoccurring closing costs associated with the construction of the ADU. Predevelopment costs include site prep, architectural designs, permits, soil tests, impact fees, property survey, and energy reports.

ADU Grant Application Process: 
https://www.calhfa.ca.gov/adu/homeowner/adu-steps.pdf

ADU Lender Participation Agreement:
https://www.calhfa.ca.gov/homeownership/forms/application-lender-participation-adu.pdf

CalHFA ADU Grant Program Income Limits: https://www.calhfa.ca.gov/homeownership/limits/income/limits-adu.pdf

CalHome Program

 State funds support local public agencies and nonprofit organizations, providing assistance for first-time homebuyers, owner-occupied rehabilitation, and ADU/JADU-related activities, encompassing construction, repair, and reconstruction. The program, known as HCD CalHome, also extends loans for homeownership development projects, covering predevelopment and construction-related carrying costs for ADUs and JADUs.

Regulations/Guidelines: 
https://www.hcd.ca.gov/grants-funding/active-no-funding/calhome/docs/CalHome-Final-Guidelines.pdf

California Community Economic Development Association (CCEDA) ADU Program

Through CCEDA, you can access the $40,000 CalHFA ADU grant whether you have the full cash or need a loan for your project. CCEDA manages funds in an escrow account, allowing you to utilize the grant for predevelopment costs, and offers second mortgages through pre-approved lenders to bridge any financial gaps, covering non-recurring closing costs and overseeing vendor payments.

Website Link: 
https://cceda.com/programs/adu/

Learn more about the program here (ADU Webinar Series Resources): 
https://cceda.com/adu-webinar-series/

HPP Cares

HPP Cares, a nonprofit 501c3 approved by the IRS, administers CALHFA ADU Grants, providing households an alternative to refinancing by absorbing origination fees, enabling access to the grant. The submission process for the CalHFA portal is currently paused. Updates will be provided once additional details are available.

Website Link: 
https://www.hppcares.org/adu/adu-grant.php

Receive a notification once they resume accepting applications here: https://intakeq.com/new/plmcpi/zwiqpw

One Trust Home Loans            

This program offers owner-occupied, single-family residence borrowers up to $40,000 in grants for pre-development costs linked to ADU construction, requiring a new construction loan for eligibility. The grant funds can be utilized exclusively for preconstruction soft costs and non-recurring closing costs, including permit fees, city fees, impact fees, soil samples, surveying, architectural fees, and engineering fees.

To book an appointment click here: 
https://go.onetrusthomeloans.com/CalHFA-Qualifications.html

CalHFA Approved Lenders Located in Laguna Niguel