ADU grants in Los Angeles are an affordable housing initiative that incentivizes homeowners to create ADUs on their property.
This program offers you as a homeowner in Los Angeles comprehensive assistance for financing, designing, permitting, and constructing a new ADU, bringing up to code an existing unpermitted unit, or illegal garage conversion.
Our Los Angeles ADU Builders can help you access the ADU grants to build an ADU and maximize the value of your property.
The ADU grants in Los Angeles provides two types of grants for income-eligible residents to work with contractors, and other construction services specialist to bring an existing ADU up to code or create a new accessory dwelling unit. The two types are:
This grant program subsidizes working with an architecture or structural engineer to draw up design plans for your ADU.
The maximum planning grant amount is $10,000 and it is payable in three parts directly to the engineer for designs used to file for a permit and attain a general contractor bid.
To qualify for the final payout, the ADU drawing must be filed with the City of Los Angeles Department for Building for permitting after grant approval.
This program subsidizes the construction costs associated with building a new unit on your property and it amounts to a maximum of $40,000.
ADU construction grant may also be used to bring an existing ADU into code compliance to avoid incurring fines for being out of compliance.
To be able to qualify for ADU grants in Los Angeles, there are some specific requirements that you must meet as a homeowner. The requirements are as follows:
| ADU grant requirement | Details |
| Construction or renovation-type loan
|
To qualify for the ADU grant program in LA, you first need to obtain a loan from LA approved lender. This way you will be deemed ready to use financing for your ADU project. |
| Low-to-moderate income limits
|
To qualify for the ADU grant program in Los Angeles, you must meet the set income criteria. The income caps apply to the individual grant recipient but not the total household income.
The current income cap for Los Angeles is $180,000. |
| Owner-occupancy requirement
|
The grant cannot be put toward an ADU at an investment property; therefore, you as the recipient of the grant must live in and own the property where the ADU will be built. |
ADU Builders professionals know all the documentation needed for the requirements to be met to be eligible for ADU grants in LA and can guide you through the entire application process as follows:
There are specific loan lenders approved by the ADU grant program offering a range of loans you can choose from to fit your needs. Some of the approved lenders include:
We are happy to work with you to ensure that you have the plans, scope of work, and budget required to submit for loan documentation on ADU grant. Contact us now.
You do not need a loan when applying for a grant; however, you are required to show that you have all funds secured to complete your ADU project based on the project budget, including pre-construction expenses. If you end up needing a loan, LA preferred lenders can help get you a loan at a good rate and your loan fees can be paid directly from the grant.
Any remaining grant funds after you receive your Certificate of Occupancy will be returned to the LA grant fund. However, there are plenty of opportunities to utilize the funds including applying them to non-recurring closing costs such as paying down your interest rate.
Most hard construction costs (foundation, framing, finishes, fixtures, and all other construction wages and materials, etc.) are not covered by the grant. Neither is solar.
ADU grants in Los Angeles have approved lenders offering different loan options for financing your ADU project. Some of the most common financing options that you can choose include but are not limited to;
