The ADU Grant provides up to $40,000 to reimburse pre-development and non-reoccurring closing costs associated with the construction of the Accessory Dwelling Unit (ADU), otherwise known as a permanent Tiny House. Pre-development costs include site prep, architectural designs, permits, soil tests, impact fees, property survey, and energy reports.

This grant is processed in conjunction with a Renovation loan, which is a refinance of your existing mortgage. The construction funds, from the Renovation Loan are put into a construction escrow account and the grant funds are deposited into the escrow account when the bank funds your new renovation loan. The Renovation Loan amount is based on the “future value” of your home with the (ADU) Accessory Dwelling Unit (tiny house) built. The construction funds are put into a controlled construction escrow account where the Accessory Dwelling Unit Grant funds are also deposited, at the closing of your refinance after the construction is complete. There are 2 loan program offers that work in conjunction with the CALHFA ADU Grant program.  Both of these programs are renovation loans.


The ideal homeowner  for  a renovation  loan  is someone who recently bought a home with less than 20%  down – or a homeowner that needs the value of the Accessory Dwelling Unit added to their appraised value in order to get the money they need to build the Accessory Dwelling Unit.

If you are a homeowner with a lot of equity in their property, there are much cheaper options to finance an Accessory Dwelling Unit, namely a Home Equity Line of Credit (HELOC) or a cash-out refinance.


It takes 30 days from when we submit our contractors bid to build you Accessory Dwelling Unit, or tiny house, and your cooperation in the loan process is appreciated.


To apply for a renovation loan, please submit the form at the bottom of this page to be emailed the Reconstruction Loan/Grant application. We will be notified when you have completed your loan application and will work on getting your loan approved.

California ADU Grant Application Request Form

Please include house number, street name, City & Zip code.