Questions? Email us at [email protected]

Accessing CALHFA 40k ADU Grant Funds

Watch the video, review the information below, choose cash/financing and complete the application.

phase 2 hpp cares calhfa grant portal resume accepting applications

per calhfa portal submission paused - we will update once we have additional details
receive notification once resume accepting applications

Due to the limited number of grant applications, if you are unsuccessful in receiving a grant, sign the petition requesting state legislation to increase the funding for ADU predevelopment grants.

Sign Petition

Application required documents:

  • Proof of Income
  • Utility Bill (Water, Electricity, Gas)
  • Tax Returns 2021
  • Scope Of Work

Application Sample:

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Upon confirmation that you are an awardee, you will be sent an email providing details on your reservation number simply put confirming your application is being processed for final approval of the CALHFA 40K ADU Grant.

Be on the lookout for a Fund Control Agreement, by way of DocsuSign that must be signed electronically in order to establish your managed escrow account. As for the next steps:

  • Over the next 2 to 4 weeks, you will receive the official award for the grant issued by the CALHFA. Starting November 1st as the start day of the 2–4-week time frame
  • Upon receipt of the official 40k award funds will be disbursed to the managed escrow account
  • While you are waiting
    • solidify the budget, scope of work aka cost of the Adu project
      • ask for the contractor or professionals you will be working with to sign the attached documents W9, Conditional Release of Lien, Wire Form, if you wish to have them paid by check make sure the invoice has the correct address
      • you the awardee need to complete and sign the following items W9, Conditional Reales of Lien, Wire Form
      • you the awardee, need to provide the mortgage statement for your loan if you have one so that we may reimburse the principal of the loan for monies spent in advance for Predevelopment Expense. Only if you happened to have to spend money in advance.
    • confirm all funding outside of the grant funds you need to complete the ADU project.
    • collect all unpaid invoices and paid invoices with proof of payment

Have questions email:

[email protected] subject line: awardee name property address

[email protected] subject line: awardee name property address

phase 1 calhfa adu grant awardee prior to october 29, 2022

Congratulations, You are officially an Awardee! This means that you have executed your fund control agreement.

Thank you for your patience, as we had to work through a large volume of applications. We expect to provide you with a smoother experience as you transition into the next phase of the process.

Please be reminded that to consult your tax adviser about the 1099 that will be issued in the 2023 calendar year for the $40K granted to you in the 2022 calendar year.

So, what are the next steps? There are 4 different categories that may apply to your ADU project.

#1 Just Starting Your ADU project

Just starting your ADU project: The grant funds don't have an expiration you need to take your time consult and vet your ADU partners. We recommend, but not required, taking the HOUZD to ADU by HPP Cares - Design, Finance, Construct, and Lease Protect

The CALHFA ADU Grant only covers the pre-development cost for your ADU project. Therefore, you need to provide details on how you plan to fund the rest of your ADU project.

self-fund cash – Provide proof of funds via a bank statement, home equity line of credit, etc

financing - If you are planning to pursue financing – no proof required. If you have been approved for financing, please provide proof.

select your own contractor – You are welcome to select your own team of professionals / contractors: Architect, Engineer, or Prefab Modular Manufacturer Company.

owner builder please note that the term "OWNER BUILDER" is frowned upon as we prefer to use the term: SELF-MANAGED. If you use the term "owner-builder" we will have to decline the grant application as the State of California CALHFA ADU Grant Program will NOT allow for "owner builder". Therefore, if you are a licensed or unlicensed professional Contractor, Architect, Engineer etc. you are welcome to Self-Manage your project pro bono.

Do not call La Mesa Fund Control

To get the process started

Email [email protected] your Budget, Proof of Funding, Invoices to be paid, or Invoice to be reimbursed (be sure to add the proof of payment for each item already paid)

Once we received, we will notify you of the next step

#2 started spending money on your adu pre-development

If you have started spending some money on pre-development expenses, and still have more pre-development work to be covered for your ADU project, try to limit out of pocket expenses allowing the grant to serve its intended purpose.

To get the process started

Email [email protected] your Budget, Proof of Funding, Invoices to be paid, or Invoice to be reimbursed (be sure to add the proof of payment for each item already paid)

Once we received, we will notify you of the next step

#3 halfway done with your adu

If you are halfway done with your ADU with all the pre-development costs having been paid, and you paid in cash, you will not be reimbursed in person for cash that is not associated with a HELCO nor refinance or second mortgage.

If you have cash from a HELOC, refinance, 2nd mortgage, you will need to supply all paid invoices with proof of payment. The State will allow HPP CARES to issue a payment to the financing institution directly. Therefore, we will need the wiring information and all details pertaining to the loan so that we may issue a payment to the lender.

Be advised this is subject to the terms and conditions of the financing institution. Supply all paid invoices by following the steps below.

take note: HPP CARES will still need a budget, and the project will need to be fully funded in order to access the grant funds.

To get the process started

Email [email protected] your Budget, Proof of Funding, Invoices to be paid, or Invoice to be reimbursed (be sure to add the proof of payment for each item already paid)

Once we received, we will notify you of the next step

#4 90% completed all expenses paid

Congratulations, if you paid cash. However, cash that is not associated with a HELCO nor refinance or second mortgage you will not be personally reimbursed.

If you have cash from a HELOC, refinance, 2nd mortgage, you will need to supply all paid invoices with proof of payment. The State will allow HPP CARES to issue a payment to the financing institution directly. Therefore, we will need the wiring information and all details pertaining to the loan so that we may issue a payment to the lender.

Be advised this is subject to the financing institution. Supply all paid invoices by following the steps below.

take note: HPP CARES will still need a budget, and the project will need to be fully funded in order to access the grant funds.

To get the process started

Email [email protected] your Budget, Proof of Funding, Invoices to be paid, or Invoice to be reimbursed (be sure to add the proof of payment for each item already paid)

Once we received, we will notify you of the next step

owner-builder, please note that the term "owner-builder" is frowned upon as we prefer to use the term: self-managed. if you use the term "owner-builder" we will have to decline the grant application as the state of california calhfa adu grant program will not allow for "owner-builder". therefore, if you are a licensed or unlicensed professional contractor, architect, engineer etc, you are welcome to self-manage your project pro bono.

New options available for you to fund your ADU Project. As a new CALHFA preferred participant on the list, HPP CARES is now offering the CALHFA 40K ADU Grant. We are also pleased to offer you two funding options.

Financing

You will need to qualify for loan financing (Home Equity Line of Credit (HELOC), Second Mortgage, Cash Out Refinance). All proceeds of the loan must be placed in a managed escrow. Upon funds and being placed in managed escrow, we will add the CALHFA 40K ADU GRANT funds. All funds will be disbursed according to the completion of the phases of your ADU project, being overseen by our HUD Certified Inspectors. No money will be given directly to the homeowner. If there are remaining funds upon completion of the project, those funds will go toward rate reduction or principal reduction. Please complete an application in its entirety in order to get started.

Cash

With cash from savings, Home Equity Line of Credit (HELOC), Cash Out Refinances, or a loan from family/friends, you can now finance your ADU project. If this is an option that you are looking to pursue, be advised all funds must be placed in a managed escrow account. Upon funds being received, CALHFA 40k ADU GRANT FUNDS will be wired into the same managed escrow account where, as the phases of your project are completed, the funds will be distributed. All projects will be overseen by HUD Certified Inspectors. If there is a surplus of funds upon receipt of Certificate of Occupancy, the remaining proceeds will be refunded. Please complete an application in its entirety in order to get started.

Combination Cash and Finance

Please note this would be a combination of both cash and finance. Please complete an application in its entirety in order to get started.

We would like you to be aware that the CALHFA 40k ADU GRANT FUNDING is taxable, so please consult a tax adviser before proceeding. Participants in the CALHFA 40k ADU GRANT FUND must be owner occupants (names must appear on deed) and not exceed the income limit for their county (that is for Loan Financing and Cash Funding your ADU Project). To ensure successful submissions, please refer to the additional guidelines and requirements.

For ADUers that have completed their ADUs.

For investors who want to access the grant funds. For property owners who own multiple single-family homes, or multi-unit buildings and wish to access the grant funds. Complete the short information form. We hear you! We are collecting the data to discuss with the State Representative.

financing

You are looking to qualify for a loan such as a Home Equity Line of Credit (HELOC), Second Mortgage, or Cash Out Refinance. Please be advised that you must meet the income guidelines set by CALHFA 40K ADU Grant Fund, along with being the owner occupant on the deed of the single family home and owner occupied multi family unit 1-4 unit.

Complete Application

Cash

You have available cash. The cash may be proceeds from a previous loan (Home Equity Line of Credit (HELOC), Second Mortgage, Cash Out Refinance) or from savings, family/friends, 401K/IRA, etc.

Please be advised that you must meet the income guidelines set by CALHFA 40K ADU Grant Fund, along with being the owner occupant on the deed of the single family home and owner occupied multi family unit 1-4 unit.

Complete Application

Requirements for CALHFA 40K ADU GRANT

  1. 1 Owner Occupied
    (deed holder)

  2. 2 Income below limit amount according to County

  3. 3 Single family home and owner occupied multi family unit 1-4 unit

Important Links

Frequently asked questions

Also known as a fund control account. This process is where a third party firm manages and verifies the construction budget, draw documentation, and work progress to ensure disbursement of funds during a construction project are managed and released the phases of your project are complete.

Can I get started with HPP CARES, lock the CALHFA 40K ADU GRANT reservation without knowing how I plan to fund my ADU project?

To ensure best use of everyone's time. We recommend that you have a pretty good ideal how you plan to fund your project.

I already completed a registration packet, I took your HOUZD to ADU by HPP Cares, do I still need to complete a new Registration packet ?

Yes because the new packet is for the grant

Fund my ADU project

What are the two options for funding my ADU when working with HPP CARES?

You are able to pay with cash. The cash may be proceeds from a previous loan (Home Equity Line of Credit (HELOC), Second Mortgage, Cash Out Refinance) or from savings, family/friends, 401K/IRA, etc.

I have cash to build my ADU can I still access the grant funds?

Yes, as long as all funds are deposited into the managed escrow account. Then the grant funds would be wired to the same managed escrow account and disbursed as the project moves through the phases. Please note with this funding option there will be an assigned HUD inspector that will verify all phasis are in fact complete and funds would then be released.

What if I am paying with cash, my cash has been directed to the managed escrow account along with the CALHFA 40K ADU GRANT funds and I run short on my project?

According to the rule, Owner occupied, 1 ADU 1 grant amount $40,000. Therefore you can build the JADU, unfortunately you would not be able to submit for an additional $40,000 grant.

What if I am paying with cash and the cash has been directed to the managed escrow account and I don't use all the funds? Do I get a refund or is the money sent back to the grant fund?

As long as the grant funds were paid out to the costs that they are supposed to any excess costs outside of that can be refunded.

I am a first-time buyer who is working with one of the lenders on the list can I still get the ADU grant funds?

Yes but the lender would have to reserve the grant funds with CalHFA before the loan is funded and escrow is closed.

I will be using a Renovation aka Construction loan to conduct the purchase?

If you are doing a renovation purchase transaction and adding an ADU that is okay to access the grant funds.

Build

Would it be possible to build an ADU and a JADU?

According to the rule, Owner occupied, 1 ADU 1 grant amount $40,000.

Is it necessary to get two sets of plans and permits when building both an ADU and a JADU? Or will it be understood even though I have the entire project on one set of plans and permits?

Yes, but we can only cover the costs of 1 ADU so the contractor would have to break out the fees separately for the ADU that we are providing the grant for.

My property is in a TRUST can I access the grant funds?

Yes

foreberance|loan modification

Investor

My property is in an LLC can I access the grant funds?

This is for individual homeowners that own their primary residence not a company that has a portfolio of properties.

reimburse predevelopment expenses

How far back if at all will the grant accept receipt for. If prior to covid I paid from my some of my soft cost can those be considered?

We will not reimburse the borrower directly but any funds they paid for soft costs out of pocket can be used to reduce the principal of their construction financing.

If you have received the proceeds from your previous financing and have cash and are still working toward completing your project their may be a way to assist.

So I have paid for a few pre-development costs, I am in the process of either funding my ADU with CASH or seeking Loan Financing, as long as I place all proceeds in a managed escrow account can I still participate in the CALHFA ADU GRANT program?

Yes

Scams

Can I work with an nonprofit or any company that claims to be able to help me gain access to the grant funds?

No, only Participants listed on CALHFA ADU GRANT webpage are the only entities approved to administer funds.

CALHFA ADU grant funds

What are the predevelopment cost covered under the grant?

Pre-Development Cost

  • Plans
  • Permits
  • Surveyor
  • Engineering
  • HUD Inspectors
  • Impact
  • fees
  • Title 24
  • Property grading
  • Architect
  • Ground clearing
  • Utility trenching
  • Excavation
  • Septic

Nonrecurring - Closing Cost

  • Lender
  • Title
  • Escrow
  • Points for rate buy down

What cost are not covered under the grant?

  • Solar
  • Foundation
  • Lumber
  • Drywall

As of August 10, 2022, can I use the CALHAF 40k ADU Grant predevelopment funds to build an ADU if I am the owner occupant of a multifamily 1 to 4 unit?

Yes. Keep in mind that you must be an owner occupant and you can only get grant funds for 1 ADU. If you are building only 2 ADUs, you don't have to get separate plans and permits. You will need to ask the builder to provide a separate expense sheet for the 1 ADU.

Is there any penalty if I get the grant funds and then sell my home or move out of the home?

No.

Do I have to reside in the property for any duration, timeframe having been a recipient of the funds?

No but it must be owner occupied at the time of construction.

Education

Interested in learning HOUZD to ADU by HPP Cares? Let us show you how in our webinar: HOUZD to ADU by HPP Cares: Design. Finance. Construct. Lease. Protect.

Note: This free educational webinar does not go into specifics about HPP CARES’ new program. In the near future, we may have an educational webinar that provides details on the program. This website and potentially a future webinar will provide specifics about our program. Enroll now

Getting started

Select an option below, schedule an appointment and complete the registration packet.

We understand you may have already submitted a registration packet because you may have attended our HOUZD to ADU by HPP Cares educational webinars. Yes we need this new one completed entirely.

Step-by-step guidance

No matter what your needs are, access to quality, unbiased information is your right. Follow along as we provide essential information and resources to guide you at every stage of your journey.

Progress

As a social enterprise, HPP CARES CDE has achieved significant and wide-ranging accomplishments in recent years. Working under the National Coalition for Equities' (NCFE) umbrella, our focus has been on advocating for a strong community voice among federal and state regulators and major private sector corporations. We've dedicated ourselves to addressing public policy issues, particularly those related to wealth and income inequality impacting affordable homeownership and small business growth.

Through collaborative efforts with NCFE, HPP CARES CDE has expanded outreach initiatives, leading to increased corporate social responsibility and consumer protection awareness. Our endeavors have enabled us to engage with a broader audience, forge partnerships with numerous companies, and engage with regulators, all with the goal of supporting deserving individuals in achieving sustainable homeownership, fostering successful small businesses, protecting consumers, and empowering California communities.

At HPP CARES CDE, we are committed to championing opportunities for people of color to become integral partners in our mission to reduce income and wealth inequality, thereby contributing to the creation of stronger futures for all minority groups.

Hpp cares Doorways progress made Houzd Lehvl