What if I don’t have a lot of money available right now to build an ADU?

If you have equity in your home, a cash-out refinance or home equity loan/line of credit (HELOC) might work for you. Financing is typically unavailable for homeowners with lower income and insufficient home equity, but as of January 2023, the California Housing Finance Agency (Cal HFA) ADU Program provides a grant of up to $40,000 to qualified homeowners for the reimbursement of ADU pre-development costs, including but not limited to impact fees. To qualify, a homeowner must be low or moderate income. Make sure to check if funds are available and if you qualify.