Overview: What’s Changing in 2025?
California homeowners building ADUs (Accessory Dwelling Units) in 2025 are navigating a shifting financial landscape:
CalHFA ADU Grant paused—but returning
The California Housing Finance Agency offered up to $40,000 for pre-development costs (architectural, permit, energy reports, site prep).
Funding was exhausted for 2024; currently paused with promise of future rounds.
San Diego Housing Commission (SDHC) ADU Finance Program
Offers up to $250,000 construction-to-permanent loan + free technical assistance for income-qualified homeowners.
Note: No new funds in FY 2025; limited FY 2024 funds still being allocated.
Local fee waivers across Southern California
Encinitas: Waives most impact fees (except sewer for ADUs over 750 sq ft; school fees over 500 sq ft).
Vista: Full fee waivers possible for ADUs > 750 sq ft if rented to income-qualified tenants (80% AMI) for 10 years.
La Mesa: Exempts park and RTCIP fees; first $2,000 of permit fees waived.
Permit fee trends in San Diego
Typical permit costs are $15–18/sq ft, with plan-check, building permits, Title 24 review, utility and school fees.
Builds under 750 sq ft can avoid development impact fees.
Why These Changes Matter
Boosting affordability: Grants and waivers cut initial costs, making ADUs more accessible to moderate-income homeowners.
Accelerating projects: Feasible financial support encourages homeowners to apply for the San Diego ADU Permit and start sooner.
Equity focus: Many programs—especially SDHC’s loans—require income limits and affordability covenants.
Summary Table
| Program / Location | Benefit | Status 2025 |
|---|---|---|
| CalHFA $40K Grant | Covers pre-development costs | Paused, funding exhausted |
| SDHC ADU Finance | Up to $250K loan + technical help | Limited FY 2024 funds, no FY 25 |
| Encinitas Fee Waiver | Waives most impact fees | Active |
| Vista Fee Waiver | Waives all impact fees for income-qualified | Active |
| La Mesa Permit Fee Waiver | Waives permit/park fees | Active |
| San Diego Permit Fees | $15–18/sq ft + build/impact costs | Ongoing, waivers under 750 sq ft |
Navigating the San Diego ADU Permit Process
Pre-qualify for SDHC program (≤150% AMI, credit ≥680)
Apply for San Diego ADU Permit—fast-track permitting aligns with state law
Check unit size—build under 750 sq ft to avoid impact fees
Seek local fee waivers if building in Encinitas, Vista, La Mesa
Stay ready for CalHFA grant reopening
FAQ
Final Thoughts
California’s evolving ADU fee and grant landscape offers both opportunities and hurdles in 2025:
Golden chances: SDHC loans, CalHFA grant, and local waivers ease financial barriers.
Time-sensitive: Grants are paused or limited; act quickly on loans and waivers.
Strategic planning: Build within size thresholds and align with permit programs like San Diego ADU Permit to maximize savings.
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