New Program Provides Rebates for ADU Construction

Cities across California are ramping up efforts to encourage the production of accessory dwelling units (ADUs) to help address the housing crisis. The Senate District 7 ADU Accelerator Program, piloted by Senator Steve Glazer, will be composed of 15 cities in the East Bay of the San Francisco Bay Area, including Livermore.

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.

ADU Accelerator Program Guidelines 

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.

Cities across California are facilitating the production of accessory dwelling units (ADUs) to help address the housing crisis. The new program, piloted by State Senator Steve Glazer, will be composed of 15 cities in the East Bay of the San Francisco Bay Area. 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 Period: October 1, 2024, to September 30, 2026 (or sooner, if funds are expended). 

Rebates will be provided on a first-come, first-served basis until all the funds are expended. 

The Amount of Rebate is based on the following scale:   

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. Rebates 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/Assessor’s Parcel Number (APN). 
• Rebates are limited to individual homeowners, with one rebate allowed per individual or entity.
• 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.
• We recommend rebate recipients to consult with a tax professional, ideally before accepting the rebate, to determine how it will impact your financial situation.
• Please contact the Planning Division if you received your certificate of occupancy after October 1, 2024, and have questions on program eligibility. 

Application Process 

1. Applications are accepted via online application only. Please submit to the Planning Division at Planning@livermoreca.gov. View more information on the program and access the application. 
2. 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 “Amount of Rebate” section above.  
3. Check your email for a reply from the city of Livermore, Community Development Department, Planning Division, which will either provide you with an assigned application number or notify you if any information is missing.  This email should arrive within 5 calendar days.    
4. Submit a copy of the Permit Documentation indicating the issuance of your ADU building permit within 6 months of application
5. To receive your rebate, submit a copy of the certificate of occupancy of your ADU. This must be submitted within 18 months from the issuance of the Building Permit. 
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.