CalHFA ADU Grant Program

California Housing Finance Agency

Closed Home Repair

About This Program

State program providing grants to help California homeowners build Accessory Dwelling Units (ADUs) that will be used as affordable housing. Homeowners must agree to rent the ADU at affordable rates for at least 5 years.

Grant up to $40,000 for ADU construction with 5-year affordability commitment

Data last verified 2026-06-09. How we verify our data.

In Chico, CA, you can combine this program with other local help to cut your cost:

Key Details

  • Up to $40,000 for building an ADU
  • Must rent ADU at affordable rate for 5 years
  • Income at or below 120% AMI
  • Currently closed, check for future funding
  • Helps create affordable rental housing

How to Apply

A grant-savvy contractor in Chico, CA can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Chico early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

The CalHFA ADU Grant reimburses up to 40,000 dollars of the predevelopment and non-recurring closing costs of building an accessory dwelling unit, such as site prep, architectural designs, permits, soil tests, impact fees, and surveys. You apply through a CalHFA-approved ADU lender or participant. Funding is released in rounds, so confirm a round is currently open before you count on it.

Steps to apply

  1. Confirm you own and occupy the property and meet the income limit for the current grant round.
  2. Develop your ADU plans (scope of work and budget).
  3. Contact a CalHFA-approved ADU participant or lender to start the application.
  4. Submit your ADU plans and income documentation; the grant reimburses eligible predevelopment costs.

Documents you will likely need

  • Proof you own and occupy the property.
  • Income documentation (pay stubs, W-2s, tax returns).
  • ADU plans: scope of work and budget.
  • Itemized predevelopment cost documents (designs, permits, soil tests, surveys).

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Program currently closed; check for reopening

Questions about this program?

Ask us. It is free, and a real person answers within a business day.

Email us about this program

Need a Contractor for This Grant?

Grant-approved contractors understand the documentation, inspections, and timelines, so your funding releases on schedule.

Find More Programs in Chico, CA

This is just one of many grants, rebates, and free programs available. Stack them together to maximize your savings.

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