Homeowners offered $20,000 free money to build a tiny home in their backyard…and there are no strings after three years

HOMEOWNERS can apply for a grant worth up to $20,000 that can help them build a tiny home in their backyard.

Officials in Claremont, California have said anyone can apply for a grant, and property owners do not have to rent out their granny flat after doing so for three years.

Property owners in Claremont, California, can apply for a grant that goes toward building ADUs in their backyard (stock pic)

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Property owners in Claremont, California, can apply for a grant that goes toward building ADUs in their backyard (stock pic)Credit: Google Maps

The program comes as officials have spent billions scrambling to combat homelessness in the state.

Rents have increased because of soaring demand post-pandemic.

A loan is being given to homeowners who build a so-called granny flat, known as an accessory dwelling unit, on their land, per the Claremont-Courier.

The program was approved by local lawmakers earlier this year.

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Homeowners must build the granny flat before their permit lapses or one year after receiving the $20,000 sum – whichever falls later.

Officials have warned that they might ask for the money to be handed back if the homeowner doesn’t stick to the deal.

As part of the conditions, the homeowner has to rent the ADU to a person or family on a low income.

It remains how much the $20,000 sum will help homeowners who are building the ADU, as a studio can cost $100,000 on average.

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But the homeowner only has to rent their ADU out for three years – and once that period has expired, they can use the property as they wish.

Officials have warned that the size of the ADU must be between 150 square feet and 1,000 square feet, and they must have a maximum height of 16 feet.

There are strict conditions on what the property must contain if it is larger than 500 square feet.

If the ADU exceeds that size, it must include a four-element stove, 15 square feet of counter space, and a 22-inch sink.

The features of the ADU, such as its windows, material, and roof, must match that of the homeowner’s main property.

Residents must also apply before they start constructing their ADU.

Encouraging incentives to build ADUs is one strategy that city and state officials are resorting to as they try to tackle homelessness.

California has spent more than $17billion over four years and last November, Governor Gavin Newsom urged for more aggressive action as part of efforts to tackle homelessness.

He told Fox NewsSean Hannity in June that the state had not made progress in trying to deal with the issue.

Landlords in California cannot increase rents by more than 10 percent within one year, according to state law.

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Stats, compiled by Zillow, revealed that rent in Los Angeles had increased by more than 20 percent since March 2020, as reported by the NBC affiliate KNBC.

Homeowners across California can apply for the ADU Grant Program, which provides a sum of up to $40,000 that’s designed to help with planning costs.

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