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.

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.


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.


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.


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


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

Fund my ADU project


foreberance|loan modification


reimburse predevelopment expenses


CALHFA ADU grant funds


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.


HPP CARES CDE's accomplishments these past few years have been significant and all-encompassing; striving to advocate under the National Coalition for Equities’ umbrella to maintain a powerful community voice among the Federal and State regulators and major private sector corporations to address public policy issues, and to focus on the wealth & income inequality affecting affordable homeownership and small business growth. With the NCFE, HPP CARES CDE’s outreach efforts have led to an increase in corporate social responsibility and consumer protection. We have been able to reach more people, collaborate with more companies, meet with more regulators, all in the name of helping deserving individuals become sustainable homebuyers, successful small business owners, protected consumers and empowering California communities. HPP CARES CDE is at the forefront of helping people of color become partners in our mission to reduce income and wealth inequality and build stronger futures for all minority groups.