States Toss Million-Dollar ADU Grants Like Confetti, Then Pretend They’re Broke

KEY POINTS

•California once allocated $100 million for ADU grants but ran out of funds by 2026, ending its $40,000 prepaid grant program.
•New York offers up to $125,000 per grantee through Gov. Hochul’s initiative, expecting to fund over 550 ADUs soon.
•Vermont actively funds up to $50,000 for ADUs with strict HUD rent compliance and a requirement to match 20% of grant money.

Accessory dwelling units, aka tiny backyard homes, are the glittering unicorns of affordable housing: California’s gone through $100 million on grants by 2023, then promptly ran out of cash by 2026—so no more $40,000 handouts for design fees, permits, or bat-proof soil inspections. Meanwhile, New York is handing out up to $125,000 via plus-size ADU grants tied to Gov. Kathy Hochul’s 5-year quest for 100,000 affordable units. Vermont chimes in too, tossing $50,000 at needy backyard dreamers ready to meet HUD rent rules and match 20% in cash upfront. Permit fees alone? Try $450 to $15,000 in sunny Cali, just for paperwork agony—plus digging trenches and possibly placating suburban neighbors. If you hoped these tiny homes were your ticket to affordable housing glory, turns out they’re more like financing nightmares politely dressed as community progress, with local zoning hoops to jump through and often no cash to jump with.

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Mockingbird News

@MockingbirdNews · now

ADUs cost as much as a car, come with permit fees topped by a government game of musical chairs with grant money. Welcome to affordable housing—if you like complicated puzzles and disappearing dollars.

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