ADU Grant Program ? Up to $40K ?

[Alex Ballesteros]

I am currently in the process of acquiring my first investment property with a 2 car detached garage in Compton, CA with an FHA loan, and my realtor actually mentioned something about an ADU grant program giving up to $40,000 per family, so i was wondering if anyone had any info or experiences, pros or cons, or simply anything on this topic? I am currently doing my own research but would love to hear first hand from you guys. If you have gone thru this application process, what lender did you go thru?

Also, if you have gone thru the process of converting a garage ADU if you could please let me know about your experience. How long did it take? Any obstacles? Cost? How much square footage? Etc. Anything helps, thanks in advance!

[Whitney Hill]

Quick overview of CalHFA:

-Up to $40K, but about $2K taken out for mgmt of program, and also this is considered taxable income

-Can be applied to soft costs and pre-development, e.g. plans, permits, survey, soils report, possibly trenching

-Must be owner occupied, household income limits apply, see here

-Program prefers to pay vendors directly, so try to work with a team that is willing to provide invoices for you to submit to program

-Apply here

The program is quite new and there are a lot of kinks being worked out, but we have several clients who have had their escrow accounts funded so far.