ADU Grant Administrative Fees

Dec 23, 2022 at 7:00am
ADU Grant Administrative Fees

Like many other grants, CalHFA’s ADU $40k Grant incorporates administrative fees. These fees go towards paying for the funding of administration-related overheads, which include: office equipment and office rental, employee wages, various program services, and tools to support the grant recipient.

How the CalHFA’s ADU Grant Administrative Fees are split

  • HPP Cares and La Mesa Fund Control have jointly been appointed to oversee CalHFA’s ADU grant administration. Therefore, from the $40K Grant, HPP Cares receives $2,500, while La Mesa Fund Control gets $2000.

  • It is essential to note that because HPP Cares is a non-profit organization, you can write off the $2,500 as a donation for the tax year you accepted the grant.

  • La Mesa Fund Control’s $2,000 fee is split into two parts: $650 is disbursed at the First draw and $1,350 at the Final Draw once the ADU project has been completed.

  • Over and above the HPP Cares and La Mesa fees, there is what is called: a Ural Inspection Holdback fee of $2,500. This fee allows HPP Cares to assist the homeowner in getting back on track with the ADU project in cases where they find themselves working with a shoddy contractor or builder. This includes but is not limited to fixing issues with permitting, inspections, certification, etc... If the holdback is not required, the funds are paid into the homeowner’s mortgage or loan account.

Therefore, when a homeowner is approved for the CalHFA’s ADU $40k Grant for predevelopment work, they will receive an award of $35,500 without the Ural Inspection Fee or $33,000 if the Ural Inspection Fee is utilized to pay a licensed professional to get the project back on track.

For more information on this matter: Don’t hesitate to email: [email protected]

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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.