Accessory dwelling units (ADUs) have become increasingly popular over the last few years for several reasons. For one, the housing market has become extremely expensive, and young people are not purchasing homes in the same way their parents or grandparents did. ADUs are an excellent solution to this problem. Whether it is for multi-generational housing or to supplement one’s income, they offer several benefits. Still, building an ADU is a considerable investment with high initial costs that one must plan for. Luckily, there are ways to subsidize the costs of your ADU and fund those projects without breaking the bank. Today, we explore one of these options and explain how to get a grant for an ADU.

 

How to Get a Grant for an ADU

ADUs are secondary, smaller units that exist on the same property as the main home. They can serve several different purposes, including housing units for family members, a rental income unit, or even guest accommodations if you host often. An ADU grant provides financial assistance to cover your building costs. 

Grants may come from the government, nonprofits, or other organizations. Grants often target specific groups that need affordable housing, often low-income families or older people. Applying for an ADU grant takes careful planning and detailed research. Consider the following steps if you want to secure grant funding for your ADU.

 

Step 1: Do Your Research

Research grants that you qualify for. You can find much of this information online. Specifically, you should look into local government programs, state housing authorities, nonprofit organizations, federal assistance programs, and ADU-specific grant programs. Review the eligibility requirements for each grant. Compile a list of grants that you qualify for as you do your research.

 

Step 2: Gather Information

Before you dive into an application, verify that you qualify for all of the grants you compiled in Step 1. Completing this ahead of time can save valuable time during the grant application process. If possible, get it in writing that you are eligible. The best way to do this is to email the main point of contact on the grant.

Once you have verified eligibility for a certain grant, gather the necessary documentation. Each grant is different, so compile a list of documents needed for each application. Required documents will often include proof of property ownership, income verification, ADU construction plans, permits, budget estimates, and contractor quotes from a design and build firm.

 

Step 3: Write Your Application

Once you have gathered the necessary documentation, it is time to write your grant applications. Filling out your application can be time-consuming, but you will finish it much more quickly if you have all the necessary information gathered. Use your information to draft a well-organized application, and make sure to edit it before submitting. 

Also, consider having a trusted friend or family member review the grant application instructions and your application. Extra eyes on your application will make it more likely that there are no mistakes that keep you from getting the grant. Be sure to follow the instructions carefully and avoid missing any steps. Organize the application exactly as requested. If there were no instructions, organize it as clearly as possible. Use a table of contents and page numbers for easy reading.

 

Step 4: Submit Your Application

Once you have completed the application, edited it, and had someone review it, submit it. Submit your application well in advance of the deadline. Many online applications provide a confirmation email. If you do not receive one, kindly contact the grant application contact for confirmation.

Another helpful tip after you apply is to ask questions about the timeline, such as when additional information may be required and when you will hear about a decision. If you have not heard anything after important deadlines, be sure to follow politely.

 

Design and Build Firm

If you are planning on building an ADU, contact the team at RnD Builders Inc. for more information.