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ADU Accelerator Program

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Unlock up to $15,000 in rebates for building a new ADU! 

Program Details

The City of Lafayette is participating in the Senate District 7 ADU Accelerator Program, a state-funded initiative aimed at encouraging the construction of Accessory Dwelling Units (ADUs) in 15 cities in the East Bay. Funding for the rebate program is based on a per capita amount of $1.87 per resident. Population is based on the January 1, 2024 Department of Finance Population Estimates.  

Funding Allocated to Lafayette: $46,390. Rebates will be provided on a first-come, first-served basis until all funds are expended.

Program Period: July 1, 2025, to September 30, 2026 (or sooner, if funds are expended).

 

Eligibility

Low-income restricted ADUs: Individual rebates of up to $15,000 to property owners who obtain building permits to construct an income-restricted ADU and complete the final inspection 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 (sample regulatory agreement coming soon); 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: Individual rebates of up to $7,500 to property owners who obtain building permits to construct a non-restricted ADU and complete the final inspection 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.

Please note:

  • Only one rebate will be awarded per single-family residential lot/APN. Multifamily or commercial properties are not eligible.
  • Rebates are limited to homeowners, with one rebate allowed per person, household, or entity, including trusts.
  • LLCs are eligible for low-income restricted ADU rebates only.
  • Rebates are limited to ADUs constructed on a permanent foundation with proper water and sewer connections.  Mobile homes including trailer homes, recreational vehicles (RVs), and other structures on wheels, do not qualify for this rebate program.
  • Rebate applicants are strongly encouraged to consult with a tax advisor before accepting a rebate to understand any potential tax implications.

How to Apply

  1.  Complete and sign the ADU Accelerator Rebate Application.
  2. Applications are accepted electronically via planner@lovelafayette.org. The rebate amount will be determined based on the size of the ADU and intent of the ADU (low-income restricted or non-restricted) - see eligibility section above.    
  3. Check your email for a reply from the City of Lafayette, which will either provide you with an assigned application number or notify you if any information is missing. If your application is approved and an application number is assigned, your rebate amount will be reserved for you. Rebates will not be issued to you until you provide proof of final building inspection for the ADU.
  4. Within 6 months from the date of your rebate application, submit a copy of the Permit Documentation indicating the issuance of your ADU building permit. Submit electronically to planner@lovelafayette.org, referencing your application number.
  5. To receive your rebate, submit a copy of the proof of final inspection of your ADU electronically to planner@lovelafayette.org. This must be submitted within 18 months from the issuance of the Building Permit, extensions may be granted for good cause by the Lafayette Planning Department.  For income-restricted ADUs, the property owner must record a 20-year deed restriction prior to receiving any rebate.
  6. 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.

For more information:

Not sure whether building an ADU is right for you? Read all about the different types of ADUs in our ADU Handout.

Connect with a planner:

  1. Call the Planning Department at (925) 284-1976 for assistance over the phone Monday-Friday.
  2. Email a planner at planner@lovelafayette.org.
  3. Click this link to connect with a planner at the Virtual Planning Counter via Zoom Monday and Wednesday, 9:00-11:00 AM and 1:00-3:00 PM (No appointment needed): https://bit.ly/2WkgHcv.
  4. Book an appointment via the online booking system for a 20 minute in-person appointment Tuesdays and Thursdays, 9:00-11:00 AM and 1:00-3:00 PM

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. Of this amount, $1,725,000 has been allocated for jurisdictions to provide rebates directly to homeowners who obtain building permits and achieve final occupancy within the program period. The remaining $750,000 is split equally between the 15 East Bay cities to facilitate development of permit-ready ADU plans. Permit-ready plans are expected to be available late summer 2025.