CalHFA ADU Grant Program
California Housing Finance Agency
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
Record set last reviewed 2026-06-09. How we verify our data.
Other published resources for Chico, CA, are listed below. Review each separately and ask the administrators whether they can coordinate funding for the same work:
- FEMA Hazard Mitigation Grant Program (HMGP) Varies, no individual cap; projects typically $10K-$200K+
- FEMA Increased Cost of Compliance (ICC) Coverage Up to $30,000
- HUD Lead Hazard Control & Healthy Homes Varies by jurisdiction, typically $5,000-$15,000 per unit
- EPA / WIIN Act Lead Service Line Replacement Varies, full line replacement cost covered in many programs
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
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Track this programProgram phone: (877) 922-5432
Some programs require contractor estimates, licenses, or inspections. A cited link may be general, so confirm the current rules with the administrator before hiring; a directory match does not guarantee contractor eligibility or funding.
You may need a contractor or estimate
Some programs for this project type ask for a license, inspection, or written estimate. Confirm the rule before contacting a contractor in Chico.
Get matched with a contractorEach administrator sets its contractor rules. Confirm exact requirements directly; the cited URL may be a general agency page.
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
- Confirm you own and occupy the property and meet the income limit for the current grant round.
- Develop your ADU plans (scope of work and budget).
- Contact a CalHFA-approved ADU participant or lender to start the application.
- 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 and application route with the administrator. We can help you prepare your paperwork, but you submit it yourself.
Deadline: Program currently closed; check for reopening
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More ways to save on this project
Rebates and discounts that may reduce project cost. Confirm eligibility and coordination rules before including one in your budget.
Find More Programs in Chico, CA
This is one of several kinds of assistance that may be available. Review other programs separately and confirm whether their administrators allow coordination for the same work.
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