CalHFA ADU Grant in Temecula: What It Covered and What to Do Now

Updated October 13, 2026

For property-specific planning and project coordination, explore our construction services in Temecula.

If you're researching the CalHFA ADU grant Temecula homeowners still ask about, here's where it stands. The program paid up to $40,000 toward pre-development and non-recurring closing costs for an accessory dwelling unit (ADU) [1]. That money went straight into construction escrow, never to the homeowner as cash [2]. It also stopped at the early bills. A 749 sq ft two-bedroom ADU in the Temecula Valley runs about $290,000 before site costs and fees [3].

Below you'll find how the grant paid out, who qualified, what pre-development costs run in Temecula, and how to cover them now.

Direct Answer

The CalHFA ADU grant paid up to $40,000 toward an ADU's pre-development and non-recurring closing costs, sent directly into construction escrow. Its latest funding round was fully allocated on December 28, 2023, and CalHFA has posted no new round, so Temecula homeowners can't get it today [1][2].

TL;DR

• CalHFA's latest ADU grant round was fully allocated on December 28, 2023, and no new round is posted [1].
• The grant paid up to $40,000 for pre-development and non-recurring closing costs [1].
• The money went straight to construction escrow. Costs paid up front came back only as a lower loan balance, never as cash [2].
• In Riverside County, which includes Temecula, the final round's income limit was $75,600 [4].
• In Temecula, school fees start above 500 sq ft at $5.38 per sq ft, and city impact fees start above 750 sq ft of interior livable space [5][6].
• Without the grant, the order is site visit, size choice, existing floor plan, itemized scope, then a lender [3][7].

One liner: The grant is gone for now, but its cost list is still the best map of the bills you'll pay before an ADU build starts.

Key Numbers

Stat	What it measures	Source
Up to $40,000	CalHFA ADU grant maximum per ADU	CalHFA, 2023 [1]
December 28, 2023	Date CalHFA's latest ADU funding round was fully allocated	CalHFA, 2023 [1]
$75,600	Riverside County income limit, final round	CalHFA income limits, effective 11/01/2023 [4]
$84,160	Los Angeles County income limit, final round	CalHFA income limits, effective 11/01/2023 [4]
$5.38 per sq ft	TVUSD school fee on ADUs over 500 sq ft	TVUSD, effective 6/16/26 [5]
750 sq ft	Interior livable space at or under which city impact fees can't be charged	SB 543, 2025 [6]
$14,329.21	City of Temecula impact fee for a detached home	City of Temecula, effective 7/1/26 [8]
$225,000	Woollard estimate for a 499 sq ft one-bedroom ADU	Woollard Construction, 2026 [3]
$290,000	Woollard estimate for a 749 sq ft two-bedroom ADU	Woollard Construction, 2026 [3]
11/27/2023	Last revision of CalHFA's ADU grant term sheet	CalHFA term sheet, 2023 [2]

Is the CalHFA ADU Grant Open for Temecula Homeowners?

In short: No. The grant's last funding round ran out in December 2023, and CalHFA hasn't posted a new one [1].

As of October 2026, the CalHFA ADU grant has no open funding for Temecula homeowners or anyone else in California. The only program update on CalHFA's page, dated December 28, 2023, reads: "The latest round of ADU funding has been fully allocated" [1]. That's nearly three years without a new round.

Some pages still describe the grant in the present tense, including the state housing department's ADU funding page [9]. CalHFA runs the program, so trust its page.

It's a statewide program, so Temecula has no separate round to watch. To hear first if funding returns, sign up for CalHFA's ADU eNews updates [1].

How the $40,000 ADU Grant in California Actually Paid Out

In short: CalHFA paid the $40,000 ADU grant California homeowners received into construction escrow. Costs you paid up front never came back as cash [2].

CalHFA sent up to $40,000 directly to construction escrow [2]. If you'd already paid for plans or permits yourself, that money didn't come back to you as cash. The term sheet allowed it only as a principal reduction on your construction loan [2]. CalHFA's grant page uses the word "reimburse" [1], and this is what it meant in practice.

Here's how a file moved, per the term sheet [2]:

1. A CalHFA-approved lender built the file, using your construction loan deed of trust, or your current deed if you paid without financing.
2. The file included an itemized cost list, such as a contractor's bid, scope of work, or budget, plus a certification that local permit and impact fees were paid.
3. CalHFA reviewed it and sent up to $40,000 to construction escrow.

So a loan wasn't strictly required, despite what some guides say. And with a construction loan, $15,000 you fronted for design and permits came back as a $15,000 smaller balance instead of a refund.

Even when funded, nothing moved until fees were paid and an itemized bid was on file. It's the same line-item scope we write before any ADU build, with site work, permits, materials and labor on separate lines.

ADU Grant Eligibility: Who Qualified

In short: Owner-occupants under CalHFA's income limit. In Riverside County, which includes Temecula, that limit was $75,600 [4].

CalHFA's final income table for the ADU grant, effective November 1, 2023, capped Riverside County at $75,600 [4]. Some pages still quote much higher figures. CalHFA's final table set Los Angeles County at $84,160, for comparison [4].

Beyond income, the term sheet's affidavits asked applicants and lenders to certify that [2]:

• You lived in the home.
• The ADU was for rental or intergenerational housing.
• The ADU met local zoning rules and building codes.
• A certificate of occupancy would follow completion.
• All household income was counted, with no applicant removed to fit the limit.

One more detail: CalHFA issued a Form 1099-G for the year it paid into escrow, and applicants acknowledged possible income tax consequences [2]. Ask a tax professional how that applies to you.

These were the rules for the final round.

ADU Pre-Development Costs in Temecula

In short: The grant targeted the early bills, meaning plans, permits, reports and fees. In Temecula, unit size decides several of them, with lines at 500 and 750 square feet [5][6].

Pre-development costs are what you pay before construction starts. CalHFA listed site prep, architectural designs, permits, soil tests, impact fees, property surveys, energy reports and utility hookups [2]. Here's how the pre-development costs ADU owners pay in Temecula look today.

Cost item	Grant covered it?	In Temecula	Source
Plans and engineering	Yes	Included in our published ADU prices	CalHFA term sheet [2]; Woollard cost page [3]
City permit and plan check fees	Yes	Not in those prices; with school and connection fees, usually several thousand dollars	CalHFA term sheet [2]; Woollard cost page [3]
School fees (TVUSD)	Yes, as impact fees	$0 at 500 sq ft or less, $5.38 per sq ft above	CalHFA term sheet [2]; TVUSD [5]
City impact fees	Yes	$0 at 750 sq ft of interior livable space or less; larger units pay a share sized to the main house	CalHFA term sheet [2]; SB 543 [6]
Soils report	Yes	Added when the site calls for it, such as a slope	CalHFA term sheet [2]; Woollard cost page [3]
Site plan	Yes	Always added	CalHFA term sheet [2]; Woollard cost page [3]
Utility connections	Yes	Connection fees and capacity charges aren't impact fees, so they can still apply	CalHFA term sheet [2]; SB 543 [6]

Size is the lever. A unit near 750 square feet clears city impact fees but still pays school fees, roughly $4,000 at $5.38 per square foot [5]. For scale, the city's impact fee for a detached home is $14,329.21 for fiscal year 2026-27 [8]. Go over 750 square feet and your ADU pays a share of that, based on its size against your house [6].

See our full ADU cost breakdown for Temecula.

How to Cover ADU Pre-Development Costs Without the Grant

In short: Pin down your site, size and scope first, then line up financing for the early bills. Here's the order that keeps those costs predictable.

1. Get a site visit before you pay for plans. Slope, the distance from your house to the ADU pad, and your electrical panel decide which site costs and reports you'll pay. A slope, for example, brings a soils report [3].
2. Pick a size with the fee lines in mind. School fees start above 500 square feet [5]. City impact fees start above 750 square feet of interior livable space [6].
3. Start from an existing floor plan. We give four ADU floor plans at no cost to homeowners building with us, which removes the custom design fee and shortens plan check [7]. Where a city pre-approved plan fits your lot, we compare that route too [7].
4. Ask for an itemized scope. Site plan, permits, school fees and engineering should sit on separate lines. CalHFA asked for the same kind of itemized bid when the grant was open [2].
5. Line up financing with a lender. Homeowners here commonly use a HELOC, a cash-out refinance or a renovation loan [3]. We're contractors, not financial advisors, so ask a lender which fits. The state housing department also lists programs such as CalHome, but those funds go to local public agencies and nonprofits rather than to homeowners directly [9].
6. Stay on CalHFA's ADU eNews list. It's CalHFA's own update list for the program [1].

Before a site visit, pre-development costs are a guess. After it, they're line items with real numbers attached. That's where we start: a free site visit, a measured lot, and a written scope before you sign. Call (951) 551-6165 or see our ADU services in Temecula.

How to Spot a CalHFA ADU Grant Scam

In short: CalHFA says anyone offering to help you get an ADU grant is running a scam [1].

CalHFA's program page says plainly that anyone who approaches you offering to help you get an ADU grant is running a financial scam [1]. Stop contact, and forward any names or phone numbers to marketing@calhfa.ca.gov [1].

That fits how the grant worked. The money only moved through a CalHFA-approved lender into construction escrow [2], so paying anyone to "reserve" it makes no sense.

Before you hire any contractor, check their license with the Contractors State License Board [10]. Ours is B-842038.

With no funding round open, there's no grant to sell.

Frequently Asked Questions

In short: Quick answers on availability, pre-development costs, loans and taxes.

Is the CalHFA ADU grant available to Temecula homeowners?

No. CalHFA's latest round of ADU funding was fully allocated on December 28, 2023, and its program page shows no newer update [1]. The grant is statewide, so Temecula has no separate round. CalHFA's ADU eNews list carries program updates [1].

What are ADU pre-development costs?

ADU pre-development costs are the bills you pay before construction starts. CalHFA's list included site prep, architectural designs, permits, soil tests, impact fees, property surveys, energy reports and utility hookups [2]. In Temecula, school and city impact fees depend on unit size [5][6].

Did you need a construction loan to get the CalHFA ADU grant?

Not always. The term sheet accepted a construction loan deed of trust, or the current deed if no financing was used [2]. Either way, a CalHFA-approved lender submitted the file, and CalHFA paid up to $40,000 into construction escrow [2].

Was the CalHFA ADU grant taxable?

It could have been. CalHFA issued a Form 1099-G for the year it paid funds into escrow, and applicants acknowledged possible income tax consequences [2]. A tax professional can tell you how that applied to your situation.

Definition Bank

Term	Meaning
Accessory dwelling unit (ADU)	A second, self-contained home on the same lot as a house.
Pre-development costs	Bills paid before construction starts, such as plans, permits, reports and fees.
Non-recurring closing costs	One-time fees paid when a loan closes.
Construction escrow	An account a neutral party holds and pays out from during the build.
Principal reduction	A payment that lowers the amount you owe on a loan.
Deed of trust	The recorded document that secures a California home loan to the property.
CalHFA-approved lender	A lender that signed CalHFA's ADU participation agreement and submitted grant files.
Form 1099-G	An IRS form reporting certain government payments.
Area median income (AMI)	The middle household income for a county, used to set program limits.
Impact fee	A one-time fee a city charges new development to fund public facilities.
Interior livable space	The square footage the 750 and 500 sq ft fee lines are measured on.
School developer fee	A per-square-foot fee school districts charge on new construction.
Connection fee or capacity charge	A utility's charge to hook up or reserve water and sewer capacity.
Soils report	An engineer's test of the ground the foundation will sit on.
Certificate of occupancy	The city's sign-off that a finished unit can be lived in.

Entity Cards

CalHFA ADU Grant Program

Property	Value
Run by	California Housing Finance Agency [1]
Maximum	$40,000 [1]
Covered	Pre-development and non-recurring closing costs [1]
Paid to	Construction escrow [2]
Status	Latest round fully allocated, December 28, 2023 [1]
Riverside County income limit	$75,600, effective 11/01/2023 [4]
Tax reporting	Form 1099-G [2]

Temecula ADU fee lines

Property	Value
School fees (TVUSD)	$0 at 500 sq ft or less; $5.38 per sq ft above, effective 6/16/26 [5]
City impact fees	$0 at 750 sq ft of interior livable space or less; proportional above [6]
City detached home impact fee	$14,329.21 per unit, fiscal year 2026-27 [8]
Not counted as impact fees	Connection fees, capacity charges [6]
Statute	Government Code section 66311.5, as amended by SB 543 [6]

Woollard Construction

Property	Value
License	California B-842038 [10]
Owner	Spencer Woollard [11]
Free floor plans	Four plans, 499 to 1,199 sq ft, for homeowners building with Woollard [7]
Phone	(951) 551-6165 [11]

Sources

1. CalHFA. ADU Grant Program (program update dated December 28, 2023).
2. CalHFA. Accessory Dwelling Unit (ADU) Grant Program Term Sheet (last revised November 27, 2023).
3. Woollard Construction. How Much Does an ADU Cost in Temecula, CA?
4. CalHFA. 2023 Low-Income Limits (under 80% AMI) for the CalHFA ADU Grant Program (effective November 1, 2023).
5. Temecula Valley Unified School District. Developer Fees (rates effective June 16, 2026).
6. California Legislature. SB 543, amending Government Code section 66311.5 (2025).
7. Woollard Construction. Free ADU Floor Plans: 499 to 1,199 Square Feet.
8. City of Temecula. Development Impact Fees (effective July 1, 2026).
9. California Department of Housing and Community Development. Funding for ADUs.
10. Contractors State License Board. Check a License.
11. Woollard Construction. ADU Construction in the Temecula Valley: Rules, Sizes, Permits and Costs.