Please be aware that funding may not become available until the later part of 2024, and there is no estimated time of arrival. You are welcome to work with our agency and receive grant funds as long as you do not receive a final inspection or certificate of occupancy before becoming an awardee.

Dear Interested CALHFA ADU Grant Applicants,

We hope this email finds you well. We want to express our gratitude for your interest in partnering with HPP CARES for the CALHFA ADU grant opportunity. We understand the importance of this grant in supporting Accessory Dwelling Unit (ADU) projects and its potential positive impact on California communities.

Please note that the CALHFA ADU Grant is indeed a Grant, not a Loan. It covers only predevelopment costs, not hard construction costs (e.g., Plans, Permits, Site Prep, Architect, Engineer, Surveyor, Utility Trenching).

As you patiently await CALHFA ADU Grant Announcement (please note we have no ETA when that will happen), we want to share some essential information to ensure a smooth and successful application experience. Please take a moment to review the following key details:

Limited Grant Availability: Please be mindful that the number of grants available is limited. We encourage thoroughness and diligence in completing your application to maximize your chances of securing this valuable funding opportunity once we start accepting applications.

Application Submission: We will email all who have signed up for our notification once we start accepting applications. At that time, we will also provide updates to the program and all items needed for a successful application.

Tax Implications: It's crucial to understand that the CALHFA ADU Grant is taxable income. You will receive a 1099 form for tax reporting purposes. We strongly advise consulting with a qualified tax advisor before proceeding to understand your potential tax liabilities. (Please note all income guidelines are set by legislative electives Assembly member Ting, Senator Skinner. If there is frustration, please voice your concerns with the appropriate legislative electives).

Income Guidelines: Please verify whether you meet the income guidelines, as they have undergone significant changes for this round of funding. Ensuring your eligibility in advance will save you time and effort. All income is underwritten to Fannie Mae and Freddie Mac Guidelines.

Owner Occupancy: To qualify for the grant, you must be an owner-occupant of the property for which you are seeking funding. There must also be an existing residential unit (e.g., single-family home, condo, townhome, manufactured home existing that you reside in).

Types of Approved ADUs: Jr ADU, JADU, Garage Conversions, ADU Attached, ADU Detached, Site Built, Prefab, Modular, Manufactured.

Builder Contract or Scope of Work: All participants must have an executed contract with a licensed builder or provide a detailed scope of work or budget for their ADU project. If you need help with determining a scope of work, please email adu@hppcares.org.

Funding Plan: Additionally, we require proof of how you intend to fund your project. Please include this information in your application. If you need help with determining a scope of work, please email adu@hppcares.org.

No Deed Restriction: There is no deed restriction placed on the property.

Administrative Fees: HPP CARES has administrative fees that are deducted from the total award. Note all approved CALHFA Providers have administration fees and/or costs that are deducted from the grant. Please note HPP CARES is a 501 c 3 organization; therefore, consult your tax advisor if you will be able to lessen your tax liability by submitting a donation acknowledgment when filing your taxes.

Please note that only one grant is available per property. Therefore, if you are building additional ADUs, you can only receive one grant per property.