Glazer announces $2.5 million incentive program for construction of 350 ADUs in Contra Costa, Alameda counties
Antioch among 15 cities eligible to participate in ADU Accelerator Program
By Steven Harmon, Policy Analyst/Communications, Office of State Senator Steve Glazer
SACRAMENTO – Senator Steve Glazer, D-Contra Costa, announced a newly created program to encourage the construction of hundreds of Accessory Dwelling Units in Contra Costa and Alameda Counties.
The ADU Accelerator Program, secured in the budget through Senator Glazer’s efforts, offers rebates of up to $15,000 for qualifying ADU plans and projects. This $2.5 million state-funded initiative is intended to facilitate the construction of 350 ADUs among the 15 cities and towns in the East Bay.
“It is no secret the State of California is facing a shortage of available and affordable housing, and no one knows this better than our local cities and towns,” Glazer said. “From my first days in the State Senate, I have been a staunch supporter of cities seeking new and unique ways to spur the production of housing while blending new developments within the fabric of their communities.”
“I’m hoping that cities in my district can show what can be achieved when cities work together with the state on an incentivized program aimed at producing more affordable housing,” Senator Glazer said.
The program, approved in the 2023 budget, will be administered by the California Department of Housing and Community Development.
The 15 cities are: Antioch, Brentwood, Clayton, Concord, Danville, Dublin, Lafayette, Moraga, Oakley, Orinda, Pittsburg, San Ramon, Walnut Creek in Contra Costa County and Livermore and Pleasanton in Alameda County.
Qualifying cities must have a Certified Housing Element that meets the substantial compliance requirements of Housing and Community Development.
Below is an overview of the new program along with guidelines to apply and receive funds.
Senate District 7 – ADU Accelerator Program | GUIDELINES
Program Overview
Some cities are taking steps to encourage and facilitate the construction of ADUs through the development of permit-ready plans, including architectural design work. Other cities are waiving processing fees to bring down the cost of housing.
This new program will be piloted by Senator Glazer’s District 7, composed of 15 cities in the East Bay of the San Francisco Bay Area. The program will be administered by the California Department of Housing and Community Development for the purpose of advancing or “accelerating” the production of 350 ADUs through a series of programs.
Program Funding
Section 19.564 of the Budget Act of 2023 provides $2,500,000 to be allocated by the California Department of Housing and Community Development for implementation of the ADU Accelerator Program (“Program”) to grant funds to cities for the creation of pre-approved permit-ready accessory dwelling unit plans and an incentive program.
Program Eligibility
- Fifteen (15) cities located in Senate District 7, including: Antioch, Brentwood, Clayton, Concord, Danville, Dublin, Lafayette, Livermore, Moraga, Oakley, Orinda, Pittsburg, Pleasanton, San Ramon, and Walnut Creek.
- Qualifying cities must have a Certified Housing Element that meets the substantial compliance requirements of Housing and Community Development.
Program Details
1. Incentive Program. Available Funding: $1,725,000
A. Low-Income Restricted ADUs
Provide individual rebates of up to $15,000 to property owners who obtain building permits to construct an ADU and receive a certificate of occupancy within 18 months of issuance. Rebates will be provided for units that are deed restricted to low-income households for a minimum of 20 years; based upon the following sliding scale:
- $15,000 for units < 50 square feet
- $10,000 for units between 501-750 square feet
- $5,000 for units between 751-1,000 square feet
- No rebates for units over 1,000 square feet.
B. Non-restricted ADUs
Provide individual rebates of up to $7,500 to property owners who obtain building permits to construct an ADU and receive a certificate of occupancy within 18 months of issuance. Rebates will be provided for units that are deed restricted to low-income households for a minimum of 20 years. Funds are awarded based upon the following sliding scale:
- $7,500 for units < 50 square feet
- $5,000 for units between 501-750 square feet
- $2,500 for units between 751-1,000 square feet
- No rebates for units over 1,000 square feet.
Example:
- City of Dublin has a population of 72,917 (as of January 1, 2024)
- Per Capita: $1.87
- Eligible for Award of $136,352 ($1.87 per capita x 72,917 population)
- Divided by average of $5,000 per unit (unrestricted)
Potential ADUs Added: 27 ADUs
2. Permit Ready Prototype ADU Plans. Available Funding: $750,000
Qualified cities receive funding toward preparing prototypical permit-ready ADU plans (“ADU Plans”), including design elevations and construction drawings. Permit-ready plans are intended to streamline the ADU development process and facilitate additional ADU development in the community. Cities may partner with other cities on applications in this category to leverage investment. The maximum grant per city will be $50,000.
Cities may not be reimbursed for permit-ready ADU plans that were prepared prior to the launch of this program. Program funds may be used to modify or update existing permit-ready ADU plans or to create additional permit-ready ADU plans. Cities may also seek compensation from other eligible cities they share plans with.
Application Process
To receive funds, qualified cities must complete and submit an electronic application to the Town of Danville, Fiscal Agent. All funds must be expended as prescribed below and no later than September 30, 2026, after which these funds would be considered unexpended “Excess Funds” subject to re-allocation.
Incentive Program
An application must include (a) the anticipated number of units proposed to be produced through the program; and (b) amount requested based on the per capita amount identified in the Funding Eligibility section.
Funding will be distributed to cities upon receipt of the application. Any unused funding must be returned to the Town of Danville, Fiscal Agent, at the end of the 18-month period and may be reallocated to cities that meet their targets and have additional need.
Permit-Ready Prototype ADU Plans
An application must include (a) brief description of the plans to be developed including the number of floor plans and ADU sizes; and (b) requested funding amount. The maximum funding is $50,000 per agency. Cities may partner with other eligible cities on applications in this category to leverage funding investment.
Funding will be distributed to cities upon receipt of the application. Permit-ready plans must be completed and available to prospective permittees within 12 months of grant award and include a city resolution adopting the ADU Plans.
Excess Funds
Any funding that has not been expended pursuant to these program guidelines by September 30, 2026, must be returned to the Fiscal Agent, the Town of Danville. These Excess Funds will be reallocated to other eligible agencies pursuant to the Incentive Program Guidelines. Funds will be re-allocated on a first come, first served basis. In the event of multiple requests, consideration will be given to which city or cities will generate the largest number of affordable units.
Application Deadlines
Applications are accepted via electronic submittal only
Incentive Program: September 1, 2024 – March 31, 2025 (may be extended if additional funds are available to be rolled over from the Permit-Ready program).
Permit-Ready Prototype ADU Plans: September 1, 2024 – March 31, 2025.
Program Administration
As authorized through the California Budget Act of 2023 and the California Department of Housing and Community Development, the Town of Danville will act as the fiscal agent (“Fiscal Agent”) to receive funding applications and distribute Program funds. The Town of Danville will receive a 1% fee ($25,000) for administering the program.
General program questions can be directed to Planning Division c/o Jessica Lam, Town of Danville at jlam@danville.ca.gov or (925) 314-3337.
Applications and application-related correspondence can be directed to SD7.ADUProgram@danville.ca.gov.
Biannual Reporting
Eligible recipients will be required to submit Biannual Progress Reports which summarize the number of ADUs that have been permitted and finaled for the reporting period as well as cumulatively for the life of the program through September 30, 2027.
Biannual Progress Reports will be filed with the Fiscal Agent at SD7.ADUProgram@danville.ca.gov.
*Applications are accepted via electronic submittal only
the attachments to this post:
ADU & Senator Glazer
