California has recently recognized ADUs as a powerful tool to help solve the housing crisis of the state. Also, known as granny flats, there are many advantages of getting an ADU, including an added living space to your existing property. To encourage ADU construction and expand affordable housing options, California has passed many initiatives and one of these is ADU Grants Los Angeles. What is the ADU grant program of California Housing Finance Agency? Now low to moderate income homeowners can avail a grant up to $ 40,000 to cover the pre-construction cost of building an ADU. The costs include expenses from planning to design phase and cover expenses incurred by the home owners for architectural designs, permits, soil tests, energy reports, site prep, property survey and fees. How to quality for ADU grant program? The first requirement is that the home owner must be below the income cap that California Housing Finance Agency has assigned to their country. The second eligibility factor is that the borrower must own and live in the property where a granny flat will be built. How does ADU grant program work? 1.The home owner applies for construction loan with an approved lender and completes all the formalities and paper work. 2.The lender approves the construction loan, prequalifying the home owner for the ADU grant. 3.The pre-development work of ADU build starts from the construction loan amount and the lender sends the grant application to the California Housing Finance Agency including all the invoices of the predevelopment costs. 4.The agency approves the ADU grant and channels the fund to the loan amount 5.The ADU construction is completed and financed with the loan. Final thoughts It is imperative to work with a dedicated 203K Consultant Near Me to know more about ADU grant and the current income cap. The professional consultant will help you capitalize the $40,000 opportunity and help you take full advantage of the ADU grant program. Their team will help the home owners through each step of the process with their turn-key solutions to ADUs.
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