The ADU Grant is Back (but there’s a catch)

[@carrieiduff959]

Thank you for your useful information. There is a lot of misinformation out there. Also, rude indifferent people to deal with. You are kind and I appreciate your approach too.

[@MrShutterButter]

Thank you for your updates! Appreciate the work and advice you provide. Everything you said in the video is 100% true. I had to drop certain lenders for my ADU because of the unnecessary gate keeping.

[@HowToADU]

I'm glad you're finding a path forward without the shady ones! Lots of good lenders out there too

[@pauld1767]

Let’s go!!! I’m currently on the waitlist from the last grant fund.

[@OhhhLaverne]

That’s what I told her. Because I love binge watching your videos & Kristina Smallhorn. I appreciate y’all ! ❤

[@HowToADU]

What esteemed company! Kristina is great :) thanks for watching and telling them what’s up!

[@OhhhLaverne]

@@HowToADU yes , you guys are great keep up the good work. I called Los Angeles county Martie A. From SHL and I was debating to call Jaime T. From Panorama Mortgage LLC. Thanks again!

[@SkateCritic]

Thank you…🥰

[@kevincwayna9329]

With the $7,000 in mandatory fees, the $40K grants are honestly $33K grants, no?

[@HowToADU]

Well you sure get taxed on the full $40k so I wouldn't feel comfortable calling it a $33k grant ;D But most people I worked with last year ended up with something closer to $25k-$30k benefit after fees, taxes, closing costs, etc. But your milage will vary tremendously based on the path you take.

[@TheCreatorsAttorney]

This is a great video, Ryan! Thanks for providing such value and educating all of us!

[@HowToADU]

Thanks for watching!

[@TheYotoure2]

I really need the ADU grant. Where do I sign up to convince CALFHA to fund us?

[@HowToADU]

Email list signup in the video description. We’re emailing CalHFA right now

[@MegaAlcat]

Any new updates, I not sure I am on the right email list

[@christianarriaga1079]

I need that grant to start my adu, more info and help please

[@camilley1179]

I really want to apply for this ADU grant. I am so happy to hear that i dont have to refi my mortgage and get a construction or other loan that will be a higher rate than my current mortgage. I am a first time home buyer and want to build an ADU.

[@HowToADU]

Well that’s how it worked in the most recent grant, but there’s no guarantee it will be reinstated the same way. That’s why we need to advocate!

[@user-gb7vx5qu3h]

As a San Diego citizen, I want the grant money to go to ADU applicants.

[@HowToADU]

The grant may not be coming back but I started a petition to help get cheaper financing for people who want to build an ADU actionnetwork.org/petitions/more-adu-financing

[@pamelaturner5782]

Hi I applied in March 2023 and am on the wait list and talked to HPP in Nov.23 but have not hear anything more from them. How long does it take to qualify applicants?

[@patrickkeane8671]

Thanks!

[@HowToADU]

Thank you and you’re welcome!

[@angelicabon8746]

Is there an income limit? I was initially granted the money and given the acceptance later to find out they took it back! I told even told them I was a little bit over the income requirement and said it was ok. Then they changed their minds after. I despise the government. They truly do what they want. They bail out billionaires but god forbid a regular person who happens to have a tiny bit above income requirements gets a break. My question is if the new grants will be income driven or if they increased those amounts.

[@HowToADU]

That’s one of the questions being debated. I’m actually advocating for something that’s a bit of a mixed bag. At first prioritizing the grant toward very low income and then opening it up to EVERYBODY. But the beauty here is you can advocate directly for what you need if you use the link under the video description

[@sleepyj3175]

question, assuming the grant is back and a reality for home owners would one be able to use this grant along with a program like CalPACE for example? or will there be restrictions that do not allow for programs/help to be combined?

[@HowToADU]

Not familiar with Cal PACE sorry!

[@pauld1767]

Hopefully those who are on the waitlist don’t get passed over. That would stink.

[@HowToADU]

I have serious questions about that because a lot might change if they change the application requirements or qualifying entities in some way

[@AAchurch]

I was told I was required to refinance my home.

[@HowToADU]

That wasn’t a state requirement. Even as early as spring 2023 some of the lenders like CalCon had construction loans that took a second position. And later in the year HPPCares and CCEDA let you open an escrow without any financing at all.

[@rogeliodiaz216]

Great video!

[@HowToADU]

Thanks for watching

[@robertescobedo3974]

Hello Thanks for your up to date information! I have already finished an ADU project on my detached garage. I financed it through a cash out refinance on my main home on the same lot. My question is if and when they reallocate to the ADU grant will I be able to apply and be reimbursed retroactively? Thanks

[@HowToADU]

You have to wait for CalHFA to announce details. Last time though, completely finished projects were not eligible.

[@robertescobedo3974]

Thank you

[@pusongpinoy754]

Thank you for the information, where do i email to request for grant, and do you have someone that i can hire to build ADU?

[@sharonjackson8543]

Thank you so so much. I hope I'm one of the lucky ones this time. Now I am a retired handicap female and I want to build an ADU in my daughters back yard. I want to get the loan. Can I? My name is Sharon

[@HowToADU]

Keep watching CalHFA for updates and to figure out what applies in your specific situation. If you want to advocate for the grant, you can certainly give feedback that your daughter should be eligible to build this important housing for you :)

[@adusnmore]

Ryan greed right. Answer me this, how much of this grant money has really gone to those in need of it? Is it really going towards helping affordable housing or are investors winning here. I can’t with my hands and feet the number of homes that have a family living in an un-permitted garage right now because they have no education or idea about grants like these. Give me a call next time you advocate in Sacramento I would love to share my thoughts and show them my 300 sq foot un-permitted garage because me or my family can’t afford a loan to converted into an ADU. Help me ADU grant…

[@HowToADU]

Yeah, that's an interesting question and I suggested that they could distribute the grant in two phases. In the first phase, they prioritize applicants who meet certain income requirements or who have the intent to rent affordably. In the second phase, they open it up to everybody. That way we max out funds for where they're needed most, but we still get to use all the funds by the end of the year if those affordability/inclusionary projects don't use the whole budget. I don't think you want me to film your existing non-conforming unit though ;) Seriously, I hope you're keeping safety of the inhabitants in mind and doing everything you can to be a good housing provider! I appreciate your comment and hope the state can figure out something that helps YOU

[@adusnmore]

Yes that’s exactly what I’m talking about. Can we oversee where these grants go, not police them, just make sure there used for their proper purpose. And yes believe me I made sure the structure was secure enough with my knowledge with a future permit in mind. Just a small note keep this poor man in mind when future information is available, and seriously I am very interested in speaking my mind in Sacramento. Also thanks for all you do always from the heart!!! Your ADU Homie 😂

[@troycantrell1549]

$7600 cityfee,$4.75 sqft. school fee,soils engineer$2500.Building plans and engineering prepared digitally to be able to submit to local building department$7,000 plus or minus,occupancy fee?I know its like $20k for new construction.Is water meter required?I know city water meter is like$15k+.Fire sprinkler permit fees.Sewer hookup?Does it need a seperate electricity meter and gas meter?who knows how much $10k?Not to mention the call outs on title 24.These are just estimated costs that i have researched.I am low income and could really use a fee waiver in order to make any of this make sence.I already pay a ton in property taxes and my sidewalks and are water damaged and have a band aid on them.How bout a $100k grant.Or somekind of creative financing that really works.Just saying also dont shoot the messenger.These numbers are calculated on a ADU 750sqft or less.

[@francob911]

I would love to build something bigger than 1200sf and I been told I will have to do SB9 . Will this new grant be available for SB9 homea?

[@HowToADU]

In the past, sb 9 projects didn’t qualify.

[@francob911]

@HowToADU it would be great if this loan will help on building an SB9 unit

[@reachkevinwang]

Thank you for the great video and info! How do I apply?

[@HowToADU]

For now, the application portals haven't changed yet. The budget just got approved and CalHFA will hopefully be deciding how to use the funds soon (hopefully toward an ADU grant). I'll alert people on the email list if/when I see application portals opening again: community.how-to-adu.com/c1fece6d-65fe-47e9-9645-3ef0f2d736aa

[@michaelbelcher30]

Hi Everyone, Any updates as to when this money will be released or the portal will open back up to apply?

[@HowToADU]

Yes check the more recent videos on this channel

[@JoseLara-ib3ph]

Hi great video How do I apply for the grant as am planning on building a adu .. Thank you for all the information great video

[@HowToADU]

I haven’t seen any application portals yet. Explain about the mailing list in the end of the video

[@Debora-m8r]

In 8/2018 I was building an ADU on my house in Fire Mountain, Oceanside when the corrupt cop across the street took over my construction. The GC showed up with an email and reads aloud “keep to the script. Put money on my Home Depot card”. The corrupt black cop on Avocado St tried to take over my construction also. My criminal neighbor then had day laborers on my property demanding money ($100 day and threatening my sons). My GC contacted the realtor who recommended him and tried to embroil him in their extortion rackets. I had to move to Colorado make payments on my house and sold it 23 months later. Then when I sold the house and the ADU finished cost me $700,000 lost equity after expenses and $1500-mo, but all the corrupt Oceanside PD’s houses in that neighborhood increased by $200,000 because the ADU raised property values.

[@TravisEdgewood]

Holy shit that's right down the street

[@tiffanymartin5027]

Please keep me posted when the application portal becomes available.

[@HowToADU]

There’s a mailing list in the video description! Thanks for watching

[@tamitrager3353]

Thanks so much for this information! How do I start??

[@HowToADU]

This particular grant is fully prescribed at the moment. You should check out the CalHFA website for details and it might not hurt to subscribe to email updates from the institutions that helped people apply for the most grant money (HPP CARES and CCEDA)

[@SkateCritic]

I would like more info on this Grant. 🥰

[@HowToADU]

Hah me too! There’s a more recent video about CCEDA that you should check out. CalHFA did a video last week but it was all about Dream For All

[@aniseafuller]

Please let me know how I can get this grant! Thanks

[@HowToADU]

We don’t know if the $50 million will go the grant yet. Join the mailing list to advocate for the grant and learn updates as I learn them

[@OhhhLaverne]

I just got off the phone with calhfa and ummmm she said. Nvm I will wait to see your next video.

[@HowToADU]

Haha. That’s epic. The bill just got signed yesterday so I wouldn’t be surprised if people are behind the news ;)

[@katiechun9570]

Hey, this is a great video! What is the bill number we should be following for this?

[@HowToADU]

Okay, deleted my previous answer. JUST TODAY, there was some pretty big news where the state legislature put in a budget bill that might claw the $50 million back again :(((((((( AB 104 and SB 104 are where I'm looking, but it's kind of a death by omission. leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202320240AB104 Hearing is tomorrow

[@vivianahernandez435]

If apply for a grant , do I have to pay later?

[@CaMT888]

Is this even that worth it? You are taxed on 40k, app fees etc... are around 9.5k. So now you net about 10k IF you use all of the 40k, you may not even use it all. You have to jump through hoops with the escrow account making sure fees are paid correctly and through the right entity. This 40k is only for "soft" fees like plans/permits/site prep. Construction labor and material don't even count and that is where you need it most.

[@HowToADU]

I have talked to some people who netted like $33k for some small amounts of paperwork. I have talked to other people who delayed their project for months before realizing that the grant would cost them more than it got them (because they were using a Line of Credit to finance and the escrow would trigger a year of extra interest payments). Definitely depended on the specifics for each homeowner.

[@CaMT888]

@@HowToADU yes, it will work for specific situations. For someone that is very organized, lower taxed bracket, and with cash or small financing this can work a little better. Maybe net 15k after taxes going toward the adu IF all 40 is used. But I am still skeptical. The way I see it, those that benefit are, administratives, architects, inspectors, local gov. Not so much the average homeowner. Sorry. I do like your general info. Add in the math of the fine prints and the picture is much clearer. Why not just allow people to back up their receipts with inspections for the 40k? Set a time limit and done. Why dictate soft expenses, admin fees on and on? Keep it simple is best. Or how about a tax return rebate like on EVs?

[@Harumph538]

@@CaMT888your numbers are waaaaaay off. I’ve gone through the process, and the $40k less the administration fee is huge to us. Yes we’ll owe taxes but it’s like saying you’d turn down a $35k bonus because there are taxes due. Who cares? It’s still free money for a small amount of work relative to the amount received. Also you’d be surprised what fees and costs count as pre construction costs.

[@CaMT888]

@@Harumph538 why is it 35k? Hpp’s fees are 7.5k plus 2.5k for some kinda retention in escrow, it’s off the website. Your Fed tax and Ca tax, will have to be deducted. What about getting leftover funds out of the “managed escrow” account? Easy? May work for you but a hard pass for me. Let’s see your math. We would all benefit

[@Harumph538]

@@CaMT888 again whatever you get it’s literally free money. Why would you argue against that?

[@sacsups8026]

I’m so tired writing a nasty note to Governor Newsom and all the nonsense and unfair rules and biases.

[@HowToADU]

Yeah, the strongly worded letter industry is booming these days. But right now we're writing to CalHFA :)

[@darlenetannlund2876]

How can I find out if someone applied for a grant using my property claiming he was a part owner of the property

[@HowToADU]

Most of the application processes I've seen required the applicant to be on the deed to the property. If you suspect you're the victim of identity theft or fraud, you should contact somebody in the government: www.usa.gov/identity-theft For example, contact the Federal Trade Commission (FTC) online at IdentityTheft.gov or call 1-877-438-4338

[@michaeludo150]

My ADU was completed 1 month ago, am I still some how eligible for this grant?

[@HowToADU]

Last time, finished projects were not eligible. Have you gotten a final inspection yet though?

[@pauld1767]

Ryan, I though Katherine at Hpp Cares told us that the grant would be paid out to homeowners who already built an ADU. Perhaps she meant for those who’ve already applied and then finished their build? I sure hope so.

[@HowToADU]

@@pauld1767 That's a different situation than what Michael is asking about. In any case you should contact HPP CARES about the details of your specific situation since you applied through them!

[@jp23x]

This grant was so intriguing to me, but its only for pre development costs? Wtf is the point of that. Are pre development costs really up to 40k? 40k will build you the actual tiny house

[@HowToADU]

It’s pretty tough out there. Most of these cost six figures all in so the grant gets used. You also have fees,taxes, etc off the grant total so it gets used!

[@sleepyj3175]

Id like to ask if anyone here actually got to use that $40k grant? was that really a thing? how exactly does that work?

[@HowToADU]

Yes, I have clients and community members who have obtained disbursements from the grant. Some got construction loans through CalHFA approved lenders like Cal Con and the grant money turns up in their controlled account and gets disbursed through typical draw requests for a construction loan. Most got it through CCEDA or HPP CARES where they set up escrow accounts, fully funded those accounts, got the CalHFA grant deposit minus fees, and then got disbursals through draw requests to the escrow company. Bit complicated but it has worked. I'll also mention some people were frustrated by the process and/or gave up their grant awards once they understood the costs/processes involved.

[@OuttatheVesica]

Can you tell us the steps to be prepared if it opens?

[@HowToADU]

Hmm, I feel very uncomfortable guessing what steps might be required since any part of the program could change at CalHFA or at the entities administering the grant applications. Having said that, I did put a thing together last year about what USED TO be required by one of the entities. This information is outdated, but it is still available. Check if this link still works: community.how-to-adu.com/hpp-cares-requirements

[@alexivanov4963]

Hi I have signed up but I believe it is inactive now, any update sir?

[@HowToADU]

Hmm. Not sure what you mean. The mailing list I talk about in this video should still be active and working. Or did you sign up for something else?

[@dg5175]

Is this only for ADU or is there a grant for tiny homes?

[@HowToADU]

This was specifically for ADUs and had a lot of other limitations.

[@erickapasley9366]

I need that Grant can you tell me how I can apply for it ❤

[@HowToADU]

Official information available on the CalHFA website. This video may also be helpful in addition to the official info on CalHFA website: kzbin.info/www/bejne/i5yxhpmoisR8aq8

[@erickapasley9366]

@@HowToADU thanks

[@DCmite1]

i started my adu already...can i still apply?

[@HowToADU]

We're not sure what the regulations and eligibility requirements will look like

[@michellegentry41]

Yes, but they’re all allocated. Do you know of any more for Californians in the bay area?

[@abbasi6264]

Can I apply now for ADU grant?

[@HowToADU]

No update from CalHFA yet. Check their website for up to the minute info.

[@sacsups8026]

Is it still an issue me dividing my 1200 sq foot ADU to 2 units?

[@HowToADU]

We'll see how they implement it, but generally yeah it's sometimes important to say you're doing ONE unit. So you want to compare the savings of doing both at the same time vs getting the grant for one and then doing the second. How's the project coming?

[@sacsups8026]

I put in for an extension, because permits have been ready for sometime to be pulled. I’ve been struggling but interviewing contractors but they get my plans then I never hear from them. ADU is huge hope they aren’t using my plans lol. Then been contacting a few mortgage lenders and banks on how best to finance.

[@hizkiasetiawan364]

Can I still eligible for the grant if we are planning build the ADU less than 200k? Because I heard 200k is the minimum cost for the grant to be granted.

[@HowToADU]

I do not believe that $200k minimum costs was ever a requirement from CalHFA or the state in the last round. It may have been a requirement from the lender you were speaking to. I know lots of projects that got grant funding with lower than $200k costs.

[@JimmySaul888]

That's not true. I have been approved for a grant from the last round and my estimate was $150k. I'm financing using my HELOC.

[@hizkiasetiawan364]

@@JimmySaul888 Hi Jimmy, I am planning to finance it using my heloc as well. Can you help me with the brief step on how I start this project using heloc? I heard not all lender taking heloc.

[@sleepyj3175]

I hope this is not just another program to fit a certain "agenda" in favour of state politicians or those from the "Working group" who are more concerned or thirsty waiting to make those funds "dissapear" rather than going where it needs to which is directly to the home owners.

[@HowToADU]

Yeah, I understand that concern. This one went pretty well last time, although a lot of people dislike how much of the money gets eaten up by taxes, fees and administration. Having said that, this is MUCH more efficient than most housing subsidies. I know "less bad" isn't a very inspirational message, but it's my view that it would be much easier to get MORE funding than it would be to administer the existing funding more efficiently. So if I could put CalHFA's energy or whoever's energy into either getting another $50 million or administering the current $50 million more efficiently, I'd pick the prior. I'd pick it like 100 times. :D

[@sleepyj3175]

@@HowToADU i agree and I understand the dislike in regards to taxes and fees, although it might not work for everyone i still feel as long as you dont end up upside down on your projects once its all said and finished, after taxes and fee lets just look at it in a positive light as free money which otherwise would of came out of our own pockets!

[@sandyyue2864]

thank you for the information. i am looking for a construction loan lender to start the application process. do you have anyone to refer to me ? thanks.

[@HowToADU]

Our videos are frequently sponsored by Renofi and they have been in some of the videos about the Grant. They do special types of renovation loans that take the future value of your ADU and rental income into account. They did work with the grant in the last iteration and are well-informed. You can learn more at this link: loan.renofi.com/how-to-adu But always shop around! Additionally, you may want to keep an eye on CalHFA's website for updates about the ADU incentive programs. Last round, they listed specific approved lenders. Some of them are in this video: kzbin.info/www/bejne/j2m4dKCgqKqhq5I

[@CryptoCafe2012]

Is there an income requirement?

[@HowToADU]

The last iteration had an income cap on the grant applicant. We will see what they ask for this time

[@CryptoCafe2012]

@@HowToADU Where can I get a lone?

[@deniseleung7101]

Since the grant is for pre development funds, could you clarify if the money can be used towards construction costs?

[@HowToADU]

We don’t know what future program rules will be. In the last iteration the guidance was sort of vague but excluded material and construction labor costs very explicitly. I saw companies itemizing things as “project management” or “permit application” fees though. Your mileage may vary.

[@RileyJohnson-n3u]

I obtained a HELOC and will begin the construction of my ADU next month. If the grant is reopened, it will likely be mid-project when I apply (if it reopens around the same time as last). Would I still be eligible for the grant mid construction? I missed out on the last opening and was devastated, as it would tremendously help me fund the ADU. In order to complete this project, I have to use all of my savings, but I would like to avoid doing so!

[@HowToADU]

We don’t know what the exact rules will be if the grant gets funded again by CalHFA. That’s why the advocacy email list is so important!

[@arthurtennant5109]

My wife and I just started the application process through CCEDA, it says they work with CALHFA. Kind of in the fence now because of that new income limit, has to be 80% of I think $126k for San Mateo where we are. Not exactly sure how they process approval of application even with what they call an ADU advocate.

[@ccrider4556]

I’m getting error messages when trying to sign up

[@HowToADU]

Sorry about that. Shoot me an email at [e-mail] and I’ll make sure to make it work

[@deemarietorregiante8059]

Only California ?

[@HowToADU]

This is a video and the mailing list is about a California program, but I want to cover more areas outside of California on this channel. Where are you planning/building?

[@JerryHatrickShorts]

Seems very sketchy to me. Only can use who they want and then they can change the agency. Sounds like a great plan to funnel money into someone’s pockets and out of yours.

[@HowToADU]

Government grants! Y’know the drill.

[@sacsups8026]

What?! Your here all the time and don’t SUP with me? I expect a call or a visit. Bring your wife. ❤

[@HowToADU]

I told her all about our pending paddle board adventure :D

[@neilsullada385]

so why do all these shitty little new ADPOOS cost 3k to rent in so cal when people are getting 40k just to slap them together

[@HowToADU]

Lol. A-D-Poo is definitely entering my lexicon. Honestly there is so much competition for housing that landlords often get away with charging high rent for not a lot of housing. By increasing supply, we hope to create a healthier market with naturally affordable options.

[@aungoo1311]

All funds for the Accessory Dwelling Unit Grant program were fully reserved as of 03/01/2023. We are keeping grant program information available to help borrowers and lenders as they continue to process grants in their pipeline. www.calhfa.ca.gov/adu/

[@HowToADU]

the state has its annual budget every year.

[@HowToADU]

LA times article published after this video: www.latimes.com/california/story/2023-06-29/california-restores-funding-for-first-time-homebuyers-and-adus

[@oliverlikescheetos]

I just saw an update email regarding this program and it says now the income limits are way lower. 🥲 in the Bay Area, alameda county the income is around 126k. I don’t understand how anyone would qualify. Am I reading this wrong?

[@HowToADU]

They just confirmed that they’ll adopt 80% AMI at their board meeting today. Would still check exactly how they’re calculating that because it can vary a lot.