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.  

Program Details 

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.  

Available Funding for Danville: $79,599.  Rebates will be provided on a first-come, first-served basis until all the funds are expended. 

Program Period: October 1, 2024, to September 30, 2026 (or sooner, if funds are expended).  

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/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.

Application Process 

  1. Applications are accepted via online application only. 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.    
  2. Check your email for a reply from the Town of Danville, 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.  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.  
  3. Within 6 months from the date of your original application for rebate, submit a copy of the Permit Documentation indicating the issuance of your ADU building permit.  Submit electronically at www.danville.ca.gov/ADU.
  4. To receive your rebate, submit a copy of the certificate of occupancy of your ADU electronically at www.danville.ca.gov/ADU.  This must be submitted within 18 months from the issuance of the Building Permit, extensions may be granted for good cause by the Planning Division, Town of Danville.  
  5. 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.