Encinitas ADU Requirements

Accessory Accessory Dwelling Unit (ADU) Dwelling Grant Program Unit Grant The objective of the Accessory Dwelling Unit (ADU) Grant Program is to create more housing units in California by providing a grant for pre-development costs Program and non-reoccurring closing costs associated with the construction of the ADU. Eligible Participant / Loan Origination / Servicing • CalHFA approved participants who have executed the ADU Lender Participation Agreement • Participant can use their own various delivery options to price and deliver their construction loans • CalHFA will not purchase construction loans, reimburse Participant for construction loans, or provide any sort of guarantee for Participant having made construction loans to eligible borrowers • Participant can retain servicing or release servicing to a 3rd party of their choice Qualifications • Low income limits — CalHFA ADU Grant income limit Program Description Participant will secure financing to construct the ADU. CalHFA provides up to $40,000 for pre-development costs and non-reoccurring closing costs to build the ADU.

Applicant and Participant Process Submission package to include: 1. Copy of current construction loan deed of trust for financing or current deed on file if no financing is used 2. Construction loan approval documents to include income used for qualifying 3. Escrow instructions to wire funds 4. Loan Estimate or Closing Disclosure California Housing Finance Agency 500 Capitol Mall Suite 1400, MS-990 5. Itemization list for pre-development costs including Contractor’s Bid, Scope Sacramento, CA 95814 of Work, or Budget 916.326.8800 • Pre-development costs include but are not limited to architectural www.calhfa.ca.gov designs, permits, soil tests, impact fees, property surveys, energy reports and utility hookups 6. CalHFA Participant Affidavit • Certify the construction of the ADU will follow Fannie Mae/FHA ADU feature requirements • Certify all locality permit and/or impact fees have been paid • Certify all eligible income is included in the income calculation. Participants shall not exclude or reduce applicant income or remove

Last revised: 11/27/2023 applicants to meet our income limit requirements.

Accessory Process continued Dwelling Unit Grant Program • Certify they will provide a certificate of occupancy upon completion of the ADU 7. CalHFA Applicant Affidavit • Certify of Owner Occupancy and Rental or Intergenerational Housing Purpose • Certify ADU meets all local zoning ordinances for use of property and building codes • Applicant to acknowledge they will receive a Form 1099-G alerting them of potential income tax consequences CalHFA’s Process CalHFA will review the submission package and contribute up to $40,000 directly to construction escrow. These funds can be used to for eligible pre-development costs and non-reoccurring closing costs to build the ADU. Any pre-development or closing costs paid up front by the applicant cannot be reimbursed as cash back but can be reimbursed as a principal reduction to the construction loan for the ADU. CalHFA will issue a Form 1099-G to the borrower for the calendar year in which CalHFA contributed funds to escrow.