Is the California ADU Grant Still Available in 2026?

Hey there, if you're a Sacramento-area homeowner scrolling late at night and wondering, "Is the California ADU grant still available in 2026?" you're in good company. Maybe you're thinking about adding that backyard unit for your aging parents to stay close and comfortable, or giving your adult kids their own space without them moving across town, or even turning it into a rental for some steady income that boosts your property's resale value. I've been chatting with families like yours, with single-family homes and budgets in the $150,000 to $400,000 range, for years through my work in local construction content, and this grant question comes up all the time. It's that hope for a little financial help to cut through the confusion on permits, costs, and city rules.

The good news? Yes, the California ADU Grant Program through CalHFA is still going strong into 2026, offering up to $40,000 per project for pre-development and non-recurring closing costs. Launched to make Accessory Dwelling Units more affordable, it's funded by state allocations, with the latest Notice of Funding Availability (NOFA) for 2025-2026 setting aside millions to keep it running. This means eligible homeowners in Northern California, including our 60-mile Sacramento radius, can get reimbursed for things like architectural designs, site surveys, and permit fees, exactly the stuff that often trips people up at the start. Request ADU Consultation

But like any grant, it's not unlimited; funding is first-come, first-served, so checking eligibility early is key. In my experience, families who apply right away avoid the disappointment of waiting lists, and it really eases the fear of hidden costs turning a dream project into a headache.

If you're ready to see if this grant fits your plans, give us a call at tel:+1 (916) 238-8240. We'll walk you through the details with no pressure, just helpful advice.

Overview of the ADU Grant in California

Let's break this down simply, friend. The ADU grant California program, officially the CalHFA Accessory Dwelling Unit Grant, was created to boost affordable housing by helping homeowners add secondary units. For 2026, it's expected to continue with similar terms: up to $40,000 reimbursable for qualified expenses, aimed at low- to moderate-income households (though not strictly limited if you meet other criteria).

Who qualifies? Generally, homeowners building an ADU for long-term family use or rentals, with income caps often at 120% of the area median income (around $120,000 for a family of four in Sacramento County). The grant covers pre-construction costs like plans, engineering, and appraisals, stuff that can eat up $10,000 to $30,000 before you even break ground. Request ADU Consultation

From what I've seen, this grant has been a game-changer for families in Elk Grove or Folsom, turning "maybe someday" into "let's do this." But funding can shift with state budgets, so always verify on the CalHFA site or through a local builder.

For more on what an ADU even is, our friendly explainer on what an ADU in California covers the basics without overwhelming you.

ADU Financing Options Beyond the Grant

Even if the grant fits, it's smart to look at the full picture of ADU financing, because building one is an investment in your family's future, whether for multigenerational comfort or resale perks. In 2025, leading into 2026, other options include:

• Home Equity Loans or Lines of Credit,  Tap your home's value for low-interest funding; rates are around 8-9% now, great for budgets up to $400,000.

• ADU-Specific Loans,  Banks like Wells Fargo or local credit unions offer these with terms tailored for secondary units, often with deferred payments during construction.

• State and Local Incentives,  Beyond CalHFA, check Sacramento County's fee waivers for units under 750 sq ft (saving $5,000+ on permits) or rebates in cities like Roseville for energy-efficient builds.Get ADU Cost Estimatensultation

One family I know in Citrus Heights combined the grant with a home equity line and saved thousands on upfront costs, it made their garage conversion for rental income feel doable without the stress.

Curious about your own numbers? Swing by Result Construction, they have a custom ADU Calculator on their site where you can input size in square feet and location for a quick estimate.

If this has you excited but unsure where to start, call us at tel:+1 (916) 238-8240 for a free chat, and we'll help map out financing that fits your situation.

Local ADU Incentives in the Sacramento Area

In our 60-mile radius, Sacramento County and cities add their own perks to make ADUs more affordable. For 2026, expect continued fee reductions: units under 750 sq ft often skip development impact fees (a $10,000+ savings), and pre-approved plans from the county speed things up without extra design costs.Get ADU Cost Estimatensultation

Other local boosts:

• Walnut Creek Rebate,  Up to $7,500 if you complete by mid-2026 (check if your area has a similar).

• Energy Rebates,  PG&E offers $1,000–$5,000 for efficient features like solar-ready roofs.

• Low-Income Assistance,  Expanded CalHFA options for households under 80% median income, stacking with the main grant.

These incentives really help with city-wise rule worries. Sacramento's ADU Resource Center has tools to check your address for specifics.

For design ideas that qualify for these incentives, our ADU house plans in California have examples that keep costs down.

How to Apply for the California ADU Grant

Applying is straightforward, but timing matters since funds are limited. Start on the CalHFA website: Submit proof of income, property details, and ADU plans. Reimbursements come after expenses, so plan your budget accordingly.

Steps I've seen work for families:

• Gather docs: Income statements, lot info, preliminary plans.

• Partner with a builder who knows the program, they handle much of the paperwork.

• Apply early in the year, 2025-2026. NOFA funds are allocated quickly.

One tip from experience: Stack it with local incentives for max savings.

If you need help navigating the application, reach out at tel:+1 (916) 238-8240, and we'll guide you through without any sales push.

For the full build process, once funded, our step-by-step guide on how to build an ADU is super helpful. Talk to an ADU Expert

Is the Grant Right for Your ADU Project?

This grant isn't for everyone; it's best for those building for family or affordable rentals. If your property qualifies (most single-family lots do), it's a fantastic way to ease cost fears.

Check our take on can I build an ADU on my property for eligibility basics.

And for recent cost insights, see how much to build an ADU.

Ready to see if the grant works for you? Let's talk, call tel:+1 (916) 238-8240 for a friendly, free consultation today. Start My ADU Plan

Frequently Asked Questions

1. Is the California ADU grant still available in 2026?

Yes, the CalHFA ADU Grant Program continues into 2026 with up to $40,000 for pre-development costs, funded by state allocations, first-come, first-served, so apply early.

2. Who qualifies for the ADU grant in California?

Homeowners building ADUs for family or rentals, often with income caps at 120% of the area median (around $120,000 for a family of four in Sacramento). Talk to an ADU Expert

3. What does the ADU grant cover?

It reimburses up to $40,000 for costs like designs, site surveys, engineering, and permit fees, not the full build, but a big help at the start.

4. Are there other ADU incentives in Sacramento?

Yes, local perks like fee waivers for units under 750 sq ft (saving $10,000+), energy rebates from PG&E, and city-specific rebates in areas like Walnut Creek.Start My ADU Plan

5. How do I apply for the California ADU grant?

Visit the CalHFA website, submit your income proof, property details, and ADU plans, partner with a builder for a smoother paperwork process.