This is URGENT! If we act quickly, property owners may have a chance at obtaining ADU funding assistance in a new round of ADU grants!
Here's the situation...
California lawmakers are currently deliberating on what to do with $50 million in monies allocated to ADU development assistance for homeowners. The bad news is: they now want to divert these funds to non-ADU related initiatives.
Previously, $100 million was allocated to a grant program in California that provided up to $40,000 in assistance to property owners who wanted to develop an Accessory Dwelling Unit (ADU) on their property. (You read that right: a grant, not a loan). The grants were disbursed by CalHFA and the program was wildly successful, having spurred the creation of many new dwellings statewide in the form of ADUs.
By March of 2023, the funding was exhausted and the portal for grant applications was closed. However, more grant funding had been rumored to be on the horizon as new laws were in place to explore more state-funded assistance programs. When the state budget was approved just months ago, $50 million was allocated to state ADU assistance programs, and it seemed like another round of ADU grants for property owners was on the way...
...unitl the Assembly Budget Committee stepped in and proposed a bill to take back the $50 million.
After some initial resistance by housing advocates and property owners, Budget Committee Chair Phil Ting created an amendment to the bill to restore $25 million for ADU assistance, but to "redirect" the other half.
Now is your chance to step in and tell state lawmakers what you want. They bent already from the initial outcry to restore the ADU assistance funding-- let's get them to to put it all back! Make your voice heard!
Call Assembly Budget Chair Phil Ting's office:
Capitol Phone: (916) 319-2019
Business Phone: (415) 557-2312
Give them your first and last name, CA zip code, and tell them you want them to preserve the $50 million in funding for ADUs that's in jeopardy from AB 104.
We have had many clients who received an ADU grant during the initial round of disbursement-- some of whom may not have been able to make their ADU project happen otherwise. If the state really wants to create more housing, let the politicians put their money where their mouths are by providing property owners some much needed assistance to get their ADU projects off the ground.
Also, there is a timeliness about the situation to consider: State ADU laws may roll back to local control at the end of 2024, which will make it exponentially more difficult to permit ADUs. So, the sooner this money gets disbursed, the better for property owners!
For more information about the ADU assistance funding situation, see this article from the Los Angeles Times: California lawmakers put funding for ADUs in flux. What you need to know
Also, see the below letter by the California Community Economic Development Association (CCEDA), a housing advocacy group:
Lastly, check out the CalHFA ADU Grant website for information on the original ADU grant (now exhausted): www.calhfa.ca.gov/adu/
Please contact Central Coast ADU if you have any questions about the CA ADU grant.
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