California Provides $ 25,000 to Low-Income Households for ADUs
California plans to pay low-income homeowners $ 25,000 to build Grandma’s apartments in an effort to boost housing supply statewide.
The grants will go to homeowners earning 80% or less of the area’s median income, according to the Los Angeles Daily News.
Grandma Apartments – or accessory housing units – are typically one or two bedroom residences built on existing residential property.
The grant recipient must live in the main unit of the property, but otherwise there are no restrictions; the owner is also free to sell the property immediately.
Grants are available through cash refinancing mortgages or construction loans for ADU construction. This means that the lender must certify that the grandma’s apartment plans conform to the requirements of Fannie Mae FHA ADU.
Southern California ADUs cost an average of $ 300 to $ 375 per square foot to build and average 600 to 800 square feet, according to the report. Building an ADU in the area can cost between $ 200,000 and $ 315,000; pre-construction costs can go up to $ 15,000 per unit.
Earlier this year, the City of LA released 20 pre-approved ADU designs to speed up the construction process and save money.
The ADU issue has divided southern California. Housing-friendly camps praise the concept, but others have said it is conducive to abuse and could be exploited to build larger homes. [LADN] – Dennis Lynch