New Program Provides Rebates for ADU Construction
WHAT IS THE ADU ACCELERATOR PROGRAM?
Senator Steve Glazer, representing Senate District 7, has launched a newly created Accessory Dwelling Unit (ADU) Accelerator Program that offers rebates of up to $15,000 for new ADU’s that are deed restricted to low-income households (minimum of 20 years), and up to $7,500 for non-restricted ADU’s. This $2.5 million state-funded initiative is intended to encourage and facilitate the construction of 350 ADUs in qualifying cities and towns in Contra Costa and Alameda Counties.
The City of Oakley will receive a total of $85,525.10, in the form of a one-time payment for the implementation of the ADU Accelerator Program.
INCENTIVE PROGRAM GUIDELINES
Cities across California are ramping up efforts to encourage the production of accessory dwelling units (ADUs) to help address the housing crisis. This new program, piloted by Senator Glazer, will be 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.
This program provides individual rebates of up to $7,500 to property owners for new ADU units and up to $15,000 for new ADU units that are deed restricted to low-income households (minimum of 20 years.) As the purpose of the program is to encourage the construction of smaller ADU units, there will be no rebates for units over 1,000 square feet.
PROGRAM FUNDING
Section 19.564 of the Budget Act of 2023 provides $2,500,000 to be allocated to select cities in Contra Costa and Alameda Counties to encourage the production of accessory dwelling units (ADUs) to help address California’s housing crisis. The City of Oakley is identified as one of the eligible cities.
Among the 15 cities in the East Bay, funding eligibility for the Incentive Programs is based on a per capita amount of $1.87 per resident. Population will be based on the January 1, 2024, Department of Finance Population Estimates.
PROGRAM DETAILS
Available Funding for the City of Oakley: The City of Oakley will receive a total of $85,525.10, in the form of a one-time payment for the implementation of the ADU Accelerator Program.
Program Period: October 1, 2024 through September 30, 2026.
Rebate Amounts:
- 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 (see Sample Regulatory Agreement); based on the following sliding scale:
- $15,000 for units < 500 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.
- 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. Funds are awarded based upon the following sliding scale:
- $7,500 for units < 500 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.
APPLICATION PROCESS
- Ready to build? Applicants will need to fill out the ADU Building Permit Application, pay applicable fees, and submit all required materials (See Submittal Requirements attached to the ADU Building Permit Application).
- Applications are accepted online at using the buttons below. Amount of the rebate will be determined based on the size of the ADU and intent of the ADU (low-income restricted or non-restricted), see “Rebate Amounts” section above.
- Check your email for a reply from the City of Oakley, which will either provide you with an assigned application number or notify you if any information is missing. This email should arrive within 5 business days. If your application is approved and an application number is assigned, your rebate amount will be reserved and issued to you once you receive final occupancy of the ADU.
- In order to maintain the rebate reserved, within 6 months from the date of your original application for rebate the applicant must submit a copy of the Permit Documentation indicating the issuance of your ADU building permit. Submit electronically using the buttons below.
- To receive your rebate, please notify staff after final inspection using the buttons below for staff to begin processing the rebate. This must be submitted within 18 months from the issuance of the Building Permit, extensions may be granted by the Planning Division, subject to duration of available funds, and number of applications in the queue.
- You will receive your rebate if you meet all requirements and submit the correct supporting documents online within the given time frame. Rebates will be issued via a check payable to the property owner.
ADDITIONAL INFORMATION
Please note:
- Only one rebate will be awarded per parcel.
- Rebates are only available to owners of property on which the ADU will be constructed. Owners of property may only be eligible for one rebate on one parcel within the City of Oakley.