Cost and money

ADU grants: what help exists and what's open now

Checked against state laws and official agency sources · Last reviewed October 10, 2026

What kinds of help exist

"ADU grant" covers several different kinds of help. Knowing which kind you're looking at tells you what you'll owe later.

• True grants. Money you don't repay. They are usually small or tied to one cost. Juneau's grant pays up to $13,500 per new ADU, and Boston's Technical Assistance Grant pays up to $7,500 toward design and permitting costs.
• Forgivable loans. Recorded like a loan, but forgiven bit by bit while you keep the program's rules. Vermont's VHIP 2.0 and San Antonio's Casita Incentives Pilot work this way. If you stop following the rules, you may have to pay part of it back.
• Low-interest or deferred loans. You repay them, but on easy terms. Long Beach's Backyard Builders loan is 2% with payments deferred for the life of the loan; Pasadena's is 1% simple interest with no payments for three years.
• Fee waivers and reductions. The city skips or cuts permit, impact or utility connection fees. Portland waives system development charges, and Sacramento cuts impact fees for deed-restricted affordable units.
• Free or pre-approved plans. These save design costs and time. Every California city and county had to set up a program to pre-approve ADU plans by January 1, 2025.
• Grants to local governments. Some state money goes to towns, not homeowners. Colorado's ADU Grant Program "awards grants directly to local governments," which use it for fee waivers, pre-approved plans and technical help.

For loans that aren't tied to a public program, such as a HELOC, cash-out refinance or renovation mortgage, see our ADU financing guide. [2][6][7][8][9][10][11][12][13][14]

State programs, state by state

These are the statewide programs we checked at their official pages on October 10, 2026. A program being "open" doesn't mean money is guaranteed: most are first-come, first-served or competitive.

California: CalHFA ADU Grant (closed). It paid "up to $40,000 to reimburse pre-development and non-recurring closing costs." CalHFA's latest notice, dated December 28, 2023, says "The latest round of ADU funding has been fully allocated." California's housing department (HCD) says in its March 2026 handbook that "the funds have been exhausted." Watch the CalHFA ADU page for any new round. HCD says "some local agencies are creating funding opportunities for ADU/JADU predevelopment and construction costs, or they are waiving fees," so check with your city or county. See our California page.

Colorado: loan help through lenders (open), grants to towns. The Colorado Housing and Finance Authority (CHFA) runs an ADU Interest Rate Buydown Program, worth up to $25,000 per loan to permanently lower the rate on a fixed-rate home equity loan or cash-out refinance (HELOCs don't qualify), and an ADU Credit Enhancement Program that puts up a cash deposit of up to 10 percent of the loan as extra collateral. Lenders must income-qualify borrowers "at or below 140 percent of the statewide Area Median Income (AMI), currently $174,440." The project must be in a community certified as an ADU Supportive Jurisdiction; check DOLA's list. Separately, the ADU Grant Program pays certified local governments, not homeowners; its third round is open to them from September 28 to October 23, 2026. See our Colorado page.

Massachusetts: MassHousing ADU loan (open) and feasibility studies (open). The ADU Loan Program offers "loans of up to $250,000 for detached ADUs, and up to $150,000 for attached ADUs," mixing an interest-bearing loan with zero-interest, deferred financing. You must own and live in a single-family home, meet income limits, and have plans and permits in hand; "projects started prior to closing are not eligible." You apply through a MassHousing lending partner. Separately, the Massachusetts Housing Partnership's ADU Incentive Program pays listed providers $500 per feasibility study, and those providers have agreed not to charge property owners more than $500. See our Massachusetts page.

Minnesota: Fix Up loan (open). Minnesota Housing's Fix Up Home Improvement Loan lists "Accessory dwelling unit" among eligible improvements. Loans run from $2,000 to $75,000 at a fixed rate, with income limits and a minimum credit score. Your participating lender decides whether your project qualifies. See our Minnesota page.

New York: Plus One ADU (through local administrators). New York's housing agency (HCR) says homeowners apply for its Plus One ADU Program through local program administrators, and it lists administrators for towns and cities in the Hudson Valley, Westchester, Long Island, Buffalo, Ithaca, Troy, Utica and others. Its 2026 funding round for administrators caps help at $125,000 per unit ($175,000 in New York City), including the administrator's fee, limits homeowners to 120 percent of area median income, and requires a regulatory agreement of at least 10 years. In New York City, intake closed June 12, 2026 (see below).

Rhode Island: RIHousing FHA 203(k) for ADUs (open). RIHousing offers an FHA 203(k) loan to buy or refinance a home and build an attached or interior ADU. It does "NOT finance detached ADUs such as small cottages or tiny homes." See our Rhode Island page.

Vermont: VHIP-ADU (ask your Homeownership Center). The state says VHIP-ADU "offers grants of up to $50,000 that can be used for expenses related to creating an accessory dwelling unit." Under VHIP 2.0 the money comes as a 5- or 10-year forgivable loan to develop an ADU "on an owner-occupied property." You provide a 20% match and charge rent at or below HUD Fair Market Rent for the loan term. Applications go through the regional Homeownership Centers. See our Vermont page.

Maine: ADU Boost pilot (Midcoast). Brunswick's ADU Boost Program page describes an incentive grant of "10% of the qualified costs, up to $10,000" for homeowners in Bath, Brunswick and Rockland who finance at least $50,000 through Bangor Savings Bank. The money comes from the State of Maine's Housing Opportunity Grant Program. Funds are limited and reserved first-come, first-served. See our Maine page.

We didn't find a current statewide homeowner ADU grant in the other states this site covers. [1][2][3][4][5][13][14][15][16][17][18][19][20][21][22]

City and county programs we found open

Local programs change often and many have waiting lists. These were open, ongoing or scheduled to open on their official pages on October 10, 2026:

• Pasadena, California: The Second Unit ADU Program offers an "up to $250,000 construction loan at just 1% simple interest—no payments for three years," if you rent to a Pasadena Housing Choice Voucher tenant. The page says "Application window is now open" and applications are reviewed on a rolling basis.
• Long Beach, California: The Backyard Builders Program lends up to $250,000 at 2% for 30 years, with payments deferred for the life of the loan. Round 2 applications are scheduled for November 1-30, 2026, and Round 2 money is limited to certain areas of the city; check your address on the program page. The ADU must be under 500 square feet and single-story, and your household income must be under the state's low-income limit.
• Napa, California: The Junior Unit Initiative offers "forgivable loans of up to $75,000 to create a junior or converted unit," forgiven 5% a year and fully after 20 years, plus grants for design and accessibility work. One unit must stay owner-occupied and the other must be rented to a low-income tenant at an affordable rent. Call (707) 257-9430 for an application.
• Sacramento, California: The city can reduce impact fees by up to $10,000 per unit that stays affordable for at least 30 years through a deed restriction, first-come, first-served while yearly funds last.
• Sacramento County, California: Shelf Ready ADU plans are free for the unincorporated area only.
• Boston, Massachusetts: The ADU Financial Assistance Program offers income-eligible owner-occupants of 1-3 unit homes a grant of up to $7,500 for design and permitting and a 0% deferred loan of up to $50,000 for construction.
• San Antonio, Texas: The Casita Incentives Pilot shows "Application Open." It offers a forgivable loan of up to $25,000 (forgiven over 5 years) or $35,000 (over 10 years), depending on your income or your renter's.
• St. Petersburg, Florida: In the South Side Community Redevelopment Area, the Affordable Residential Property Improvement Grant is "a reimbursable grant for up to 40% of the pre-construction value of eligible improvements," for owners below 120% of area median income. See the city's ADU page.
• Portland, Oregon: The ADU SDC waiver waives system development charges for ADUs that aren't short-term rentals, in exchange for a 10-year covenant.
• Honolulu, Hawaii: In February 2025 the City Council passed Bill 63 (2024), which extends the city's ADU fee waivers, set to end June 30, 2025, to June 30, 2030. Ask the Department of Planning and Permitting whether a waiver is in effect and which fees it covers for your project.
• Juneau, Alaska: The ADU Grant Program pays a $13,500 grant per new ADU, with applications accepted year-round. On October 10, 2026 the page said "There are currently 8 ADU Grants Available." You apply together with your building permit, the grant is paid after a full certificate of occupancy, and you record a deed restriction against short-term rental for five years.

[6][7][8][9][10][11][12][23][24][25][26][27][28]

Programs that are closed or used up

Don't plan around these unless the agency announces new money:

• California, CalHFA ADU Grant: "fully allocated" since December 28, 2023.
• New York City, Plus One ADU: "As of June 12, 2026, Intake for the Plus One ADU Program is closed." The city has opened a mailing list for updates on the program page.
• Charlotte, North Carolina, Queen City ADU Program: "Applications closed on October 31, 2025." It offered up to $80,000 of forgivable financing. The city's ADU page has an interest form. See our Charlotte page.
• Chula Vista, California, ADU loans: "As of June 2024, the City is no longer accepting ADU loan applications." See our Chula Vista page.
• East Bay, California, Senate District 7 ADU Accelerator rebates: rebates of up to $7,500, or $15,000 for deed-restricted low-income units. Livermore's page says "Program Closed September 30, 2026." See our Livermore page.
• Orange County, California, Affordable ADU Loan Program: On May 21, 2025, the Orange County Housing Finance Trust board "voted unanimously to discontinue further efforts to establish the Affordable ADU Loan Program."
• Federal energy tax credits: The IRS says the Residential Clean Energy Credit "is not available for any property placed in service after December 31, 2025," and the Energy Efficient Home Improvement Credit covered improvements "through December 31, 2025."

[1][29][30][31][32][33][34][35]

The strings attached

Read the program rules before you count on the money. These conditions show up again and again:

• Income limits. Most programs cap household income: for example, 120 percent of area median income under New York's 2026 Plus One funding round, 135 percent for Boston's loan (with a 1:1 match from 120 percent up), and 140 percent of the statewide median for Colorado's CHFA programs.
• Rent caps for a set number of years. Vermont's VHIP requires rent at or below HUD Fair Market Rent for 5 or 10 years, and you repay a share for every year you don't comply. Napa's forgivable loan requires an affordable rent to a low-income tenant and is forgiven over 20 years.
• Owner occupancy. Napa, San Antonio, MassHousing and Boston all require you to live on the property.
• Deed restrictions. Sacramento's fee reduction needs a deed restriction keeping the unit affordable for at least 30 years. The SD7 rebate required 20 years for its larger low-income rebate.
• No short-term rentals. Portland's waiver bars short-term rental of the ADU and the house for 10 years, and breaking the covenant costs 150 percent of the current fees. Juneau's grant must be paid back, $2,700 for each remaining year, if you break its five-year short-term rental ban. Long Beach requires rentals of at least 30 days.
• Timing and paperwork. MassHousing won't fund projects "started prior to closing." Boston requires two workshops within three months before you apply and a licensed architect. Many grants are paid as reimbursement after the work is done, as in San Antonio, St. Petersburg and Juneau.

[2][3][5][7][8][9][10][11][12][19][23][25][28][32]

Free plans, fee waivers and utility rebates

Some of the biggest savings aren't called grants.

Pre-approved plans. In California, every local agency had to "develop a program for the preapproval of ADU plans by January 1, 2025," post the plans on its website, and approve or deny a detached ADU using a pre-approved plan within 30 days. Some are free, such as Sacramento County's Shelf Ready plans. New York City launched a Pre-Approved Plan Library of detached backyard cottage designs in March 2026. Ask your permit office whether it has one; see the permit process guide.

Fee waivers. Besides the local waivers above, many states limit ADU impact fees by law. Our ADU cost guide lists them.

Energy rebates. The federal home energy tax credits ended for property placed in service after December 31, 2025. To look for current rebates and special offers from ENERGY STAR partners near you, search by ZIP code in the EPA's ENERGY STAR Rebate Finder. [13][24][34][35][36][37]

How to find a program near you

• Start with your city or county housing department, not the permit office. Programs like Boston's, Napa's and San Antonio's are run by housing staff.
• Check your state housing finance agency. MassHousing, CHFA, Minnesota Housing, RIHousing and New York's HCR all run ADU help through lenders or local partners.
• Check the date and status on the official page. City pages can lag behind. Laguna Niguel's ADU Grants & Loans page, for example, still describes the CalHFA grant and an "Affordable ADU Loan Program," though CalHFA's funds are fully allocated and the Orange County Housing Finance Trust voted in May 2025 to stop setting up its Affordable ADU Loan Program.
• Beware of paid "grant help." CalHFA warns: "If anyone approaches you saying they can help you get an ADU Grant, it is a financial scam." New York City says its Plus One program "will never charge you money for an eligibility analysis or program guidance."
• Look at our state and city pages. Each covers local programs we verified, for example Colorado, Massachusetts and San Antonio.

[1][3][4][5][7][8][18][20][23][29][33][38]

Questions people ask