ADU Grants in California: What Is Left in 2026

By ADU Scope editorial team · Last verified: October 2026
ADU grants in California are scarce in 2026: the statewide CalHFA ADU grant is closed, and the local rebates we could verify have reached their stated end dates. What remains is mostly loans, fee relief and a few programs that open in short windows.

This guide to ADU grants in California covers only programs we confirmed on official agency pages on Oct 6, 2026. We dropped anything we could not confirm. It is general information, not financial or legal advice, so check each program’s own page before you plan around it.

Statewide ADU grants in California: the CalHFA grant is closed

The California Housing Finance Agency (CalHFA) ADU Grant Program offered up to $40,000 per applicant for pre-development and non-recurring closing costs. In fact, it never paid for construction itself. CalHFA’s program page says the latest round of ADU funding “has been fully allocated,” with the update dated Dec 28, 2023.

The state’s own ADU Handbook (March 2026) agrees. It describes the grant as reimbursing predevelopment costs such as designs, permits, soil tests, impact fees, surveys and energy reports. Moreover, it also says the funds have been exhausted.

One caution: the Housing and Community Development (HCD) funding page still describes the grant in the present tense. As a result, that page is out of step with CalHFA and with HCD’s own handbook. Trust the CalHFA page, and watch it for any future round.

CalHFA also warns that scammers target people searching for ADU grants. Therefore, nobody can legitimately sell you access to this program. You can report suspicious contacts to marketing@calhfa.ca.gov.

Local ADU grants in California: what we verified

Most remaining money is local. The first group below comes from one state-funded pilot, and the others are separate city programs.

East Bay rebates: stated end dates have passed

The 2023 Budget Act put $2.5 million into an ADU Accelerator pilot for 15 East Bay cities in Contra Costa and Alameda Counties, according to a city program guideline document. Specifically, participating cities pay rebates after you finish the unit. The cities we checked set these tiers:

Unit size	Standard rebate	Income-restricted rebate (20-year deed restriction)
Under 500 sq ft	$7,500	$15,000
501 to 750 sq ft	$5,000	$10,000
751 to 1,000 sq ft	$2,500	$5,000

Lafayette, Dublin and Oakley list these tiers, and each page says the program runs to Sept 30, 2026 “or sooner, if funds are expended.” Walnut Creek’s page lists a range of $2,500 to $7,500 (standard) and $5,000 to $15,000 (restricted), with an end date of Aug 31, 2026. Walnut Creek’s page said first-come, first-served until funds run out.

As of Oct 6, 2026, those dates have passed. However, the pages we read did not announce an extension. Therefore, treat these rebates as closed unless your city confirms otherwise. If a city does have money left, the rules are strict: permit documents within 6 months, and final inspection or certificate of occupancy within 18 months of the permit.

Dublin permit-fee waiver: open through 2026

Dublin waives building permit fees for ADUs permitted between Jan 1, 2022 and Dec 31, 2026. Per the city, ADUs under 750 square feet qualify automatically. In contrast, larger ADUs need a 55-year lower-income deed restriction. The city estimates savings of roughly $2,500 to $6,000, depending on the ADU’s valuation.

San Diego Housing Commission loan: limited funding

The San Diego Housing Commission (SDHC) ADU Finance Program offers loans up to $250,000 with a 3% fixed rate. The main conditions are:

household income at or below 80% of San Diego’s area median income;
an owner-occupied single-family home in the City of San Diego;
a minimum credit score of 680;
rent held at affordable levels for 7 years, with no renting to family members during that period;
a $2,500 application fee.

Funding status is unclear. One SDHC page says it is accepting applications, while another says no new funds were available for fiscal year 2025 and that only leftover allocations can be approved. Besides, neither page showed a recent update date. So contact SDHC before you count on it.

Long Beach Backyard Builders: a window opens in November

Long Beach’s Backyard Builders program offers loans up to $250,000 at 2% over 30 years, with payments deferred for the life of the loan, per the city. Round 2 applications are scheduled for Nov 1 to 30, 2026, and the city selects applicants by lottery. The rules are tight: an owner-occupied single-family home, household income below state low-income limits, a minimum credit score of 620, a debt-to-income ratio of 55% or less, a designated neighborhood, and a single-story ADU under 500 square feet.

Conditions on ADU grants in California

Every verified program above has conditions. For example, rebates pay after you build, so you must finance the project first. Also, deed restrictions can cap your rent for decades. Similarly, owner-occupancy rules can limit how you use the main house. Compare the value of the money with the cost of those limits before you apply for any of the ADU grants in California.

Fee relief you do not apply for

State law cuts costs for small ADUs without any application. Under Government Code section 66311.5, as the HCD handbook describes it, an ADU of 750 square feet or less is exempt from impact fees. By comparison, larger ADUs pay fees in proportion to their size relative to the main home. In short, a 600-square-foot ADU can save more than a small rebate. Our guide to ADU impact fees explains how to check your city’s charges.

Other state programs: who actually gets the money

HCD’s handbook lists CalHome, the Permanent Local Housing Allocation program, the Prohousing Incentive Program and the Local Housing Trust Fund Program as state programs that can fund ADUs. However, these programs mostly fund local governments and nonprofits. HCD’s CalHome page says CalHome “does not lend directly to individuals.” Ask your city or county housing department whether it uses any of these funds for homeowner ADU programs.

Financing when ADU grants in California run dry

Because grants are thin, most homeowners finance an ADU. The HCD handbook notes that FHA, Freddie Mac and Fannie Mae loans can support ADUs. Our guide to financing an ADU compares the main options. Also review ADU construction loans and ADU renovation loans. Then model the payment before you commit, using our ADU loan payment examples.

How to check ADU grants in California before you rely on them

Follow these steps, in order:

Find the program on the agency’s own .gov or agency site, not a blog.
First, read the dates. If the page shows an end date that has passed, assume it is closed.
Look for wording such as “fully allocated,” “first-come, first-served,” or “lottery.”
Read every condition: income limits, owner occupancy, deed restrictions and unit size.
Next, ask whether the money pays up front or reimburses you after construction.
Above all, never pay anyone a fee to “unlock” a government grant.
Build your base budget without the program, and count it as upside only.

Frequently asked questions about ADU grants in California

Is there a statewide ADU grant in 2026?

We found no open statewide ADU grants in California. CalHFA’s grant is closed, and the HCD handbook says funds are exhausted. Still, check calhfa.ca.gov for any new round.

Do grants and rebates have to be repaid?

Rebates do not, but the programs we verified include loans and deed restrictions with real costs. Therefore, read the terms.

Why do so many sites still advertise the $40,000 grant?

Pages rarely change when funds run out, and sites copy older lists. So always confirm with the agency.

General information, not financial or legal advice. Indeed, program availability changes often. Verify with the administering agency.

ADU Grants and Funding in California: What Is Left in 2026