ADU grants in California (2026): what's still available

ADU grants in California: what's open

Sources: CalHFA, SDHC, City of El Cajon, County of San Diego, City of San Diego, state law, California Energy Commission, IRS.

The CalHFA ADU Grant Program

The California Housing Finance Agency's ADU Grant paid up to $40,000 toward pre-development costs such as architectural design, permits and soil tests. CalHFA says all funds were fully reserved as of December 28, 2023. The program information stays online only so lenders can finish grants already in their pipeline.

We found no announcement of a new round for 2025 or 2026. If one opens, it will be announced by CalHFA at calhfa.ca.gov, not by a builder or a caller. Anyone telling you they can get you a CalHFA ADU grant today should be treated with suspicion (see scams below).

San Diego ADU loan and grant programs

No city or agency in San Diego County that we could verify offers a no-strings ADU grant. The programs that exist are loans, and they trade cheap money for affordable rent.

SDHC ADU Finance Program (City of San Diego)

The San Diego Housing Commission lists these terms:

SDHC's fiscal 2025 report says the program serves homeowners earning up to 150% of area median income and had financed nine ADUs. SDHC's page doesn't say whether funding is open right now; email adu@sdhc.org before you plan around it. Seven years of capped rent can cost more than the interest you save, so compare it against market rent in our guide to ADU rental income in San Diego.

El Cajon ADU Loan Program

El Cajon offers a deferred loan to help owners build an ADU on their owner-occupied property. It covers construction costs only, must be repaid in the future, and the ADU must stay affordable for at least five years. The city's page doesn't publish a loan cap or say whether funds remain, so call the Housing Division before applying.

Unincorporated San Diego County

The County's trial ADU fee waiver ran from January 9, 2019, to January 9, 2024. Permits not issued by then pay all the fees normally collected at permit issuance. The County still offers free pre-approved ADU plans, which cut design costs; see pre-approved ADU plans in San Diego.

Fee exemptions: the subsidy you already have

For most owners, fee rules are worth more than any grant still on offer, and they need no application.

• State impact fee ban. No city, county or special district may charge impact fees on an ADU of 750 square feet or less. Above that, fees must be proportional to the main house.
• From January 1, 2027: SB 1117 limits impact fees on larger ADUs to the area above 750 square feet.
• City of San Diego: the first two ADUs on a property are exempt from development impact fees, whatever their size.
• School fees: none for an ADU under 500 square feet. San Diego Unified charges $5.38 per square foot above that, so a 750-square-foot ADU would owe about $4,035.

Size drives the rest of the bill too. Snap ADU's February 2026 table of City of San Diego fees runs from $10,734 for a 499-square-foot ADU to $25,138 at 749 square feet. That's a builder's estimate, not an official fee schedule; confirm with Development Services. Read more in what an ADU costs in San Diego and California ADU laws.

Energy rebates and tax credits

• HEEHRA rebates for single-family home retrofits have been fully reserved statewide since February 24, 2026. New requests go on a waitlist, and Phase II has no launch date.
• HOMES rebates haven't started in California; the state is still waiting on federal approval.
• Federal tax credits for energy-efficiency upgrades (25C) and residential clean energy such as solar (25D) don't apply to property placed in service or expenditures made after December 31, 2025.

Utility rebates change during the year. Ask your builder which equipment in the bid qualifies for a current SDG&E offer, and get the rebate terms in writing before you count on them.

Programs elsewhere in California

Some cities outside San Diego County have run their own ADU loans. In 2024, Long Beach announced $2.5 million for zero- and low-interest loans of up to $250,000, for owners who rent the ADU to a low-income household for five years. We couldn't confirm whether that money remains. If you live in Los Angeles County or elsewhere, check your own city's housing department; these programs are local and usually small.

Cutting costs without a grant

With the state grant gone, the biggest savings come from design and size choices you control.

Sources: County of San Diego, Gov. Code § 65852.27, Gov. Code § 66311.5, HCD, Snap ADU, Lars Remodel (October 2026). The City of San Diego accepts County, Chula Vista and Encinitas pre-approved plans. Compare the options in our guides to garage conversion ADUs and junior ADUs.

One cost that stays smaller than people fear: property tax. In San Diego County only the new ADU is added to your assessed value; your existing home isn't reassessed. For the loans that fill the gap a grant used to cover, see ADU financing options.

How to spot ADU grant scams

• Up-front fees. Don't pay to apply for a grant or for a list of grants.
• Unusual payment methods. Gift cards, wire transfers, cash reload cards and crypto are red flags.
• Requests for your Social Security or bank details from someone who contacted you first.
• “CalHFA grant still available.” CalHFA says its funds were fully reserved in December 2023.
• A builder bundling “grants” and loans. San Diego homeowners who let Multitaskr handle financing were left with loans in their names for unfinished ADUs. Keep your lender independent; see our ADU financing guide.

Whoever you hire, check the contractor's license, or start from our list of verified ADU builders in San Diego.

Common questions