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She currently lives in a 1 bedroom "non-elderly friendly" apartment that modifications cannot be made to. She pays almost $600 mo. not including utilities. she is on a fixed income and receives no assistance whatsoever.

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I DOUBT THAT STATE FUNDING would pay for anytlhing, this would open a whole can of worms.....
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I am not familiar with any State or Federal funding that will pay you to remodel your home. Maybe others on this forum might know of something.

It might be better to see what would be the cost of an "elder friendly" senior apartment complex where your Mom could be around people of her own age group. I see from your profile her health issue is arthritis. Are there any other issues that would make it difficult for her to live in her own apartment elsewhere?

One draw back of converting a garage into an apartment is that the concrete floors in the former garage can be very cold in winter even with thick rugs/padding. Any chance of your Mom using a bedroom inside your home?
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Did I mention she is 87?
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