November 2025

Neighborhood Change Map

HCD developed the Neighborhood Change Map to support affordable housing funding policies aimed at reducing displacement in gentrifying areas. The 2025 Neighborhood Change Map identifies census tracts (excluding rural areas) that have experienced both substantial racial/ethnic change and economic changes; while exhibiting markers of disproportionate housing need. This map advances the AFFH objective of addressing disproportionate housing need, including displacement.

Funding for ADUs

Funding for Homeowners

CalHFA’s ADU Grant Program — The CalHFA ADU Grant Program provides up to $40,000 in assistance to reimburse homeowners for predevelopment costs necessary to build and occupy an ADU.

Potential State Grants and Financial Incentives

The California Health and Safety Code (HSC), Section 65583(c)(7), requires that cities and counties develop a plan that incentivizes and promotes the creation of ADUs that can be offered at affordable rent for very-low to moderate-income households.

Benefits of ADUs

  • ADUs are an affordable type of home to construct in California because they do not require paying for land, major new infrastructure, structured parking, or elevators.
  • ADUs can provide a source of income for homeowners.
  • ADUs are built with cost-effective wood frame construction, which is significantly less costly than homes in new multifamily infill buildings.
  • ADUs allow extended families to be near one another while maintaining privacy.
  • ADUs can provide as much

Accessory Dwelling Units

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Image of accessory dwelling unit in a back yard.

Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) are an innovative and effective option for adding much needed housing in California.

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