Housing solutions
Housing solutions
Grant and Financing Opportunities
Learn which counties offer grants and forgivable loans to qualified homeowners
ADU Financing Assistance
State, county, and local governments throughout the state of California have recognized the value of ADUs as a means of expanding affordable housing options.
Many have provided funding to expand opportunities for homeowners.
The State of California, Orange County, Napa County, the City of San Diego, and others offer grants and forgivable loans to qualified homeowners.
State of California (CalHFA)
In 2021, the State of California launched an ambitious grant program to help homeowners add accessory dwelling units (ADUs) to their properties. The program has been immensely popular, prompting the legislature to renew funding and increase potential grants from $25,000 per homeowner to the current level of $40,000.
HOMEPLEX is proud to have served as CCEDA’s exclusive partner in supporting over 600 grant applicants and recipients, having provided technical assistance to homeowners needing project feasibility and site assessments, project budgets, and financial resources and guidance.
In September of 2023 the legislature proposed $25 million in grants for the upcoming 2022-23 budget. If approved, the next round of grants is expected to go very quickly. To increase your chances of getting a grant, it’s important that you begin your ADU process now. That starts with getting an approved feasibility study.
Orange County 100K Loan Program
Orange County offers low-interest loans for up to $109,500, with provisions forgiveness of loan principal and deferred payments for up to 20 years. Loans must be used to pay for ADUs that are maintained as affordable housing for at least 10 years.
The County of Napa offers forgivable loans for up to $105,000 to help pay for ADUs that are maintained as affordable housing for five years or longer.
Any homeowner living full-time in a single-family home in Napa County is eligible, provided that they commit to renting the unit at an affordable rate during the five-year window. Tenants may earn up to 80% of Area Median Income, which is currently up to $106,700 for a family of four.
If you have a family member who meets those income requirements, they are allowed to occupy the unit and still satisfy the requirements for the forgivable loan program.
Loan amounts range from $45,000 for smaller units (400 square feet) to $105,000 for larger ADUs (800 square feet). This program may be combined with other financing options such as the CalHFA Grant.
As with other ADU grants and forgivable loans, this program requires applicants to submit information about the cost and scope of their proposed ADU project, along with proof of an ability to pay for all remaining costs. A Homeplex feasibility study equips you with all the information you need to satisfy these requirements.
This program requires an approved feasibility study to apply, we can help you in case you require it:
Napa County Forgivable Loan Program
The County of Napa offers forgivable loans for up to $105,000 to help pay for ADUs that are maintained as affordable housing for five years or longer.
Any homeowner living full-time in a single-family home in Napa County is eligible, provided that they commit to renting the unit at an affordable rate during the five-year window. Tenants may earn up to 80% of Area Median Income, which is currently up to $106,700 for a family of four.
If you have a family member who meets those income requirements, they are allowed to occupy the unit and still satisfy the requirements for the forgivable loan program.
Loan amounts range from $45,000 for smaller units (400 square feet) to $105,000 for larger ADUs (800 square feet). This program may be combined with other financing options such as the CalHFA Grant.
As with other ADU grants and forgivable loans, this program requires applicants to submit information about the cost and scope of their proposed ADU project, along with proof of an ability to pay for all remaining costs. A Homeplex feasibility study equips you with all the information you need to satisfy these requirements.
San Diego ADU Finance Program
The San Diego Housing Commission’s (SDHC) Accessory Dwelling Unit (ADU) Finance Program helps homeowners with moderate income in the City of San Diego build ADUs on their property. The program provides financial assistance in the form of construction loans up to $250,000.
Rents for the ADUs built with assistance from his program must be maintained at affordable levels for at least seven years.
To be eligible, the homeowner building the ADU must earn no more than 120% of the median household income for the San Diego area (currently $140,150 per year per year for a family of four), and must meet minimum credit requirements. The ADU must be built on an owner-occupied property.
This program may be also combined with other financing options such as the CalHFA Grant.
As with other ADU grants and forgivable loans, this program requires applicants to submit information about the cost and scope of their proposed ADU project, along with proof of an ability to pay for all remaining costs. A Homeplex feasibility study equips you with all the information you need to satisfy these requirements.