Who Qualifies for the California ADU Grant ($40K CalHFA Program)
The California Housing Finance Agency (CalHFA) ADU Grant Program provides up to $40,000 to cover pre-development and non-recurring closing costs on a new ADU. Funding is limited and reopens in waves — here's exactly who qualifies, what it covers, and how Sacramento-area homeowners actually use it.
Max grant amount: $40,000
Income limit (Sac County): ≤ $300,200
Application status: Waitlist (2026)
Use: Soft costs only
What this guide covers
Each section below answers one part of the question in plain language, with 2026 Sacramento-region numbers rather than national averages.
What the CalHFA ADU Grant covers — The $40,000 grant is for soft costs — the pre-development line items that homeowners typically struggle to finance because a construction loan only releases against built improvements.
Who qualifies — income & ownership rules — Eligibility is tied to your household's annual income measured against the area median income (AMI) for your county.
Sacramento County AMI limits (2026) — CalHFA pulls income limits directly from HUD.
When the program reopens — 2026 funding status — The original $100M tranche was fully reserved within weeks of launch in 2023.
How to use the grant alongside your construction loan — The smartest play is to stack the CalHFA grant against your soft costs while keeping your construction loan or HELOC sized only for the hard build.
Frequently asked: California ADU Grant 2026
The questions homeowners ask most about this topic, answered by a CSLB-licensed Sacramento builder.
What is the California ADU grant? The California Housing Finance Agency (CalHFA) ADU Grant Program provides up to $40,000 to qualifying homeowners to cover pre-development and non-recurring closing costs on a new accessory dwelling unit — including design, permits, impact fees, and utility connections.
Who qualifies for the $40,000 ADU grant in California? You must own and occupy your primary residence, have household income at or below 80% of your county's area median income (≈ $300,200 for a family of 4 in Sacramento County in 2026), and the ADU must be permitted but not yet under construction at the time of application.
Is the CalHFA ADU grant still available in 2026? Funding reopens in waves. The original $100M was exhausted in 2023, and the Legislature has reauthorized partial funding in subsequent budgets. Applications fill within 24–72 hours of the portal opening — get on CalHFA's email list and have a builder lined up before it opens.
Does the grant pay for the actual ADU construction? No. The grant only covers soft costs — design, engineering, permits, impact fees, utility hookups. Hard construction costs must be funded separately through cash, HELOC, construction loan, or cash-out refinance.
How we deliver California ADU Grant 2026
Every project runs through the same five-stage process, so you know what happens next and what it costs before construction starts. We handle design, engineering, jurisdictional plan check and construction under one contract, which keeps the schedule and the budget with a single accountable team.
Stage 1 — Site walk and feasibility: setbacks, utilities, easements and lot coverage reviewed on site
Stage 2 — Fixed-scope proposal: line-item pricing with permits, utility connections and finishes included
Stage 3 — Design and engineering: architectural plans, Title 24 energy calcs and structural engineering
Stage 4 — Permitting and plan check: submittal, corrections and approvals handled by our office
Stage 5 — Construction and closeout: weekly updates, final inspection, certificate of occupancy and warranty
Why homeowners choose A1 for California ADU Grant 2026
A1 Building Contractors LLC is a veteran-owned, CSLB-licensed general contractor based in Roseville, CA. We design, permit and build ADUs, garage conversions, home additions and custom homes across the Sacramento region, with transparent line-item pricing and a single point of contact from first site walk to final inspection.
CSLB #1094366 General Contractor · DRE #00898265 Broker
Serving Sacramento, Placer, El Dorado, Yolo and Sutter counties
In-house design, permitting, plan check and construction
4010 Foothills Blvd Ste 103-155, Roseville, CA 95747