Is the California ADU Grant Still Available in 2026?

Short answer: No. As of 2026, the California ADU Grant Program is not currently accepting new applications. The $40,000 grant administered by CalHFA (the California Housing Finance Agency) ran out of funding and stopped taking applications back in 2023. No new funding round has been opened since.

If you've heard about “free money” to build an ADU in Sacramento, this is almost certainly the program people mean — and unfortunately it has been closed for a few years now. Here's the full picture, plus the options that are available today.

What was the California ADU Grant?

The CalHFA ADU Grant Program offered eligible homeowners up to $40,000 to cover pre-development and non-recurring closing costs — things like site prep, architectural plans, permits, soil tests, and impact fees. It launched in 2021 to encourage more affordable housing across California.

The catch: it was funded by a fixed pool of money. Demand was enormous, the funds were depleted, and CalHFA suspended new applications in 2023. There has been talk of refunding the program, but as of 2026 no new money has been allocated and applications remain closed.

So how do people pay for an ADU today?

The good news: you don't need a grant to make an ADU affordable. Most Sacramento-area homeowners we work with use financing and pay it back over time — often partly offset by rental income from the finished unit. Common options include:

• ADU construction loans — financing built specifically for accessory dwelling units, with payments starting as low as $1,200/month.
• Home equity (HELOC) or cash-out refinance — tap the equity you already have in your home.
• Renovation loans — some programs require little to no money down.

The bottom line

The California ADU Grant is not available in 2026, so don't wait on a grant that isn't coming back. With the right financing, building an ADU is more accessible than most homeowners expect — and you can start generating rental income while you pay it off.

Want a clear, no-pressure estimate for your property and a breakdown of financing options? Get a free consultation with Result Construction and we'll walk you through the numbers.