Many loan and grant options are available for granny flat conversions in California. Some options are available from official websites of state and local organizations to make the dream of building an accessory dwelling unit (ADU) a possibility for your California residence: 

1. Accessory Dwelling Unit (ADU) Financing Programs: California actively promotes ADU construction to address housing shortages. Many cities offer financing programs, low-interest loans, or grants specifically for building ADUs. These programs might be administered by local housing authorities or city departments.
2. California Housing Finance Agency (CalHFA): CalHFA offers a variety of home loan programs, and some of these might be applicable to ADU conversions. These programs often focus on affordable housing options. Check the CalHFA website for the latest information on available loan options.
3. Local Housing Trust Funds: Some counties or municipalities have established housing trust funds that provide financial assistance for affordable housing initiatives, which could include ADU conversions. These funds might offer grants, subsidies, or low-interest loans.
4. Community Development Block Grants (CDBG): CDBG funds are provided by the U.S. Department of Housing and Urban Development (HUD) to local governments for community development projects. Some communities allocate CDBG funds for housing programs, which could potentially support ADU conversions.
5. Inclusive Financing Programs: Some communities offer financing programs that allow ADU construction costs to be included in the primary mortgage. This can make it easier to finance the conversion alongside the main property. The County of San Diego offers programs to incentive ADU’s with a fee waiver program. 
6. Energy Efficiency and Sustainability Grants: California often provides grants and incentives for energy-efficient and sustainable housing projects. These grants might apply to ADU conversions that incorporate green technologies and practices.
7. Veterans and Seniors Programs: If you are a veteran or a senior, you might find specialized programs that offer grants or financial assistance for home modifications, including ADU conversions.
8. Nonprofit Organizations: Certain nonprofit organizations focus on affordable housing and might offer grants, subsidies, or assistance for homeowners looking to create additional housing units.
9. Local Credit Unions and Banks: Some local financial institutions might offer home improvement loans or lines of credit that can be used for ADU conversions.
10. Property Tax Incentives: Depending on the local regulations, there might be property tax incentives for building ADUs that provide affordable housing. These incentives could help offset some of the costs.

It’s important to conduct thorough research and directly contact the relevant agencies, housing departments, and financial institutions to get the most up-to-date and accurate information on available loan and grant options for granny flat conversions in California.

Roland Financial Services / Granny Flats R Us!

At Roland Financial Services and its sister affiliate organization Granny Flats R Us, we make ADUs and the financing of them available to everyone. We are licensed real estate agency and mortgage brokerage able to assist in loans for your ADU

For further assistance on your ADU qualifications, contact us today or schedule a fifteen minute no obligation discussion today. 

By Dr. Troy Roland

President, Roland Financial Services / Granny Flats R Us