Glazer Announces $2.5 Million Incentive Program for Construction of 350 ADUs in Contra Costa and Alameda Counties

Antioch Among 15 Cities Eligible to Participate in ADU Accelerator Program

By Steven Harmon, Policy and Communications Analyst, Office of State Senator Steve Glazer

SACRAMENTO – Sen. Steve Glazer, a Democrat from 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, included in the budget through the efforts of Senator Glazer, provides rebates of up to $15,000 for eligible ADU plans and projects. This $2.5 million state-funded initiative aims to facilitate the construction of 350 ADUs in the 15 cities and towns of the East Bay.

“It’s no secret that 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. “Since my first days in the State Senate, I have been a strong supporter of cities looking for new and unique ways to boost housing production while integrating new developments into the fabric of their communities.”

“I hope the cities in my district can show what can be accomplished when cities work with the state on an incentive program to produce more affordable housing,” said Senator Glazer.

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.

Eligible cities must have a certified housing component that meets substantial housing and community development compliance requirements.

Below is an overview of the new program as well as guidelines for applying and receiving funds.

Senatorial District 7 – ADU Accelerator Program | GUIDELINES

Program Overview

Some cities are taking steps to encourage and facilitate the construction of ADUs by developing ready-made plans, including architectural design work. Other cities are waiving application fees to reduce the cost of housing.

The new program will be led by Senator Glazer’s District 7, which is comprised of 15 cities in the East Bay area of ​​the San Francisco Bay Area. The program will be administered by the California Department of Housing and Community Development with the goal 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 that $2,500,000 will be appropriated by the California Department of Housing and Community Development for the implementation of the ADU Accelerator Program (“Program”) to provide 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 Senatorial District 7, including: Antioch, Brentwood, Clayton, Concord, Danville, Dublin, Lafayette, Livermore, Moraga, Oakley, Orinda, Pittsburg, Pleasanton, San Ramon and Walnut Creek.
• Eligible cities must have a certified housing component that meets substantial housing and community development compliance requirements.

Program details

1. Incentive programFunding available: $1,725,000

A. Residential units for restricted residential use for low-income persons

Provide individual rebates of up to $15,000 to homeowners who obtain a building permit to build an ADU and receive a certificate of occupancy within 18 months of its issuance. Rebates will be provided for units that are restricted to low-income households for at least 20 years, based on the following sliding scale:

• $15,000 for units
• $10,000 for units between 501 and 750 square feet
• $5,000 for units between 751 and 1,000 square feet
• No discount for units over 1,000 square feet.

B. Without restriction ADU

Provide individual rebates of up to $7,500 to homeowners who obtain a building permit to build an ADU and receive a certificate of occupancy within 18 months of its issuance. Rebates will be provided for units that are restricted to low-income households for at least 20 years. Funding is provided on the following sliding scale:

• $7,500 for units
• $5,000 for units between 501 and 750 square feet
• $2,500 for units between 751 and 1,000 square feet
• No discount for units over 1,000 square feet.

Example:

• Dublin city has 72,917 inhabitants (as of 1 January 2024)
• Per capita: $1.87
• Eligible for a reward of $136,352 ($1.87 per capita x 72,917 residents)
• Divided by the average of $5,000 per unit (unrestricted)

Potential ADUs added: 27 ADUs

2. ADU Prototype Plans Ready for PermitFunding available: $750,000

Qualified cities receive funding to prepare permit-ready ADU prototype plans (“ADU Plans”), including design elevations and construction drawings. Permit-ready plans are intended to streamline the ADU development process and facilitate the development of additional ADUs 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 are not eligible for reimbursement 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 with which they share plans.

Application process

To receive funds, qualified cities must complete and submit a electronic request to the City of Danville, Financial Agent. All funds must be expended as prescribed below and no later than September 30, 2026after which these funds would be considered unspent “surplus funds” subject to reallocation.

Incentive program

An application must include (a) the anticipated number of units expected to be produced under the program; and (b) the 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 City of Danville, fiscal agent, at the end of the 18-month period and may be reallocated to cities that meet their goals and have additional needs.

ADU Prototype Plans Ready for Permit

An application must include (a) a brief description of the plans to be developed, including the number of floor plans and the size of the ADUs; and (b) the amount of funding requested. The maximum funding is $50,000 per agency. Cities may partner with other eligible cities for applications in this category to leverage financial investments.

Funding will be distributed to cities upon receipt of the application. Permit-ready plans must be completed and made available to future permit holders within 12 months of grant award and include a municipal resolution adopting the ADU plans.

Surplus funds

Any funding that has not been spent in accordance with these Program Guidelines by September 30, 2026must be returned to the fiscal agent, the City of Danville. These excess funds will be reallocated to other eligible organizations in accordance with the incentive program guidelines. Funds will be reallocated on a first-come, first-served basis. In the event of multiple applications, consideration will be given to the city or cities that generate the greatest number of affordable housing units.

Application Deadlines

Applications are accepted electronically only.

Incentive program:September 1, 2024 to March 31, 2025 (may be extended if additional funds are available to be carried over from the Permit-Ready program).

ADU Prototype Plans Ready for Permit:September 1, 2024 – March 31, 2025.

Program Administration

As authorized by the California Budget Act of 2023 and the California Department of Housing and Community Development, the City of Danville will act as the fiscal agent (“Fiscal Agent”) to receive funding applications and distribute program funds. The City of Danville will receive a 1% fee ($25,000) for administering the program.

General questions about the program can be directed to the Planning Division c/o Jessica Lam, City of Danville at [email protected] or (925) 314-3337.

Applications and correspondence relating to the application can be addressed to [email protected].

Half-yearly reports

Eligible recipients will be required to submit semi-annual progress reports summarizing the number of ADUs that have been authorized and finalized for the reporting period as well as cumulatively for the duration of the program through September 30, 2027.

Semi-annual progress reports will be filed with the Financial Agent at [email protected].

*Applications are accepted electronically only.

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