HomeMy WebLinkAbout101524-06.6 ADMINISTRATIVE STAFF REPORT 6.6
TO: Mayor and Town Council October 15, 2024
SUBJECT: Resolution No. 72-2024, authorizing the Town Manager to receive,
distribute, and administer Senate District 7 Accessory Dwelling Unit
Accelerator grant funds to eligible cities in Contra Costa and Alameda
counties
BACKGROUND
California State Senator Steve Glazer (Senate District 7) has introduced a new pilot program
aimed at accelerating the development of accessory dwelling units (ADUs) to help address
the state’s ongoing housing crisis. Funded by Section 19.564 of the 2023 Budget Act, the SD7
ADU Accelerator Program provides $2.5 million in grants to support eligible cities within
Contra Costa and Alameda Counties in promoting ADU construction.
DISCUSSION
A comprehensive description and program guidelines are available on the Town’s website
at www.danville.ca.gov/SD7Accelerator and included as Attachment B. In summary, the
SD7 ADU Accelerator Program features two components:
1.ADU Construction Rebates: Property owners who build qualifying ADUs are
eligible for rebates up to $15,000. Funds are awarded on a sliding scale based on the
size and affordability of the unit. Smaller and deed-restricted ADUs are eligible for
larger rebates.
Each participating city is responsible for awarding rebates to its property owners.
Funding available for each community is based on a per capita calculation as outlined
in Attachment C. The Town’s allocation is $129,599.16 for the ADU rebate portion of
the SD7 ADU Accelerator Program.
2.Permit-Ready ADU Plans: This component of the program provides up to $50,000
for qualifying cities to create or update permit-ready ADU plans, with the goal of
expediting the permitting process and encouraging faster ADU production.
Each participating city is responsible for developing or updating permit-ready ADU
plans for their community.
SD7 ADU Accelerator Program 2 October 15, 2024
Fiscal Agent
While funding for the SD7 ADU Accelerator Program is administered by the California
Department of Housing and Community Development (State HCD), the Town of Danville
has agreed to serve as the fiscal agent for the receipt and distribution of these funds at the
local level. Additionally, the Town will collect and maintain biannual reports from
participating cities until the program's funds are fully utilized. The Town of Danville will
receive a 1% administration fee for managing the distribution of funds to eligible cities
within Senate District 7.
PUBLIC CONTACT
Posting of the meeting agenda serves as notice to the general public.
FISCAL IMPACT
None. The Town of Danville will receive a 1% administration fee for serving as the fiscal
agent for the SD7 ADU Accelerator Program.
RECOMMENDATION
Adopt Resolution No. 72-2024, authorizing the Town Manager to receive, distribute, and
administer Senate District 7 Accessory Dwelling Unit Accelerator grant funds to eligible
cities in Contra Costa and Alameda counties.
Prepared and Reviewed by:
Tai J. Williams
Assistant Town Manager
Attachments: A - Resolution No. 72-2024
B - Senate District 7 - ADU Accelerator Program Guidelines
C - Senate District 7 - ADU Accelerator Program Per Capita Allocation
RESOLUTION NO. 72-2024
AUTHORIZING THE TOWN MANAGER TO
RECEIVE, DISTRIBUTE, AND ADMINISTER SENATE DISTRICT 7 ACCESSORY
DWELLING UNIT ACCELERATOR GRANT FUNDS TO ELIGIBLE CITIES IN
CONTRA COSTA AND ALAMEDA COUNTIES
WHEREAS, California State Senator Steve Glazer (Senate District 7) has introduced a
new pilot program aimed at accelerating the development of accessory dwelling units
(ADUs) to help address the state’s ongoing housing crisis; and
WHEREAS, the pilot program, now known as “Senate District 7 (SD7) ADU Accelerator
Program,” is funded by Section 19.564 of the 2023 Budget Act; and
WHEREAS, the SD7 ADU Accelerator Program provides grant funds to eligible cities to
award ADU construction rebates of up to $15,000 based on a sliding scale tied to the unit
size and affordability; and
WHEREAS, the SD7 ADU Accelerator Program also provides up to $50,000 in grant
funds to eligible cities to develop or update permit-ready ADU plans; and
WHEREAS, a comprehensive description and program guidelines are available on the
Town’s website at www.danville.ca.gov/SD7Accelerator; and
WHEREAS, the Town of Danville has agreed to serve as the fiscal agent for the receipt
and distribution of these funds from the California Department of Housing and
Community Development (State HCD) to eligible cities in Senate District 7; and
WHEREAS, the Town of Danville will receive a 1% administration fee for managing the
distribution of funds to eligible cities within Senate District 7; now, therefore, be it
RESOLVED, that the Danville Town Council hereby authorizes the Town to serve as the
fiscal agent for the local administration of the SD7 ADU Accelerator Program; and, be it
further
RESOLVED, that the Town Council hereby further authorizes the Town Manager to
receive, distribute, and administer Senate District 7 Accessory Dwelling Unit Accelerator
grant funds to eligible cities in Contra Costa and Alameda counties.
Docusign Envelope ID: 52F6EEC7-843E-4115-8A89-913F24BAFC96
ATTACHMENT A
PAGE 2 OF RESOLUTION NO. 72-2024
APPROVED by the Danville Town Council at a regular meeting on October 15, 2024 by
the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
______________________________
MAYOR
APPROVED AS TO FORM: ATTEST:
_______________________________ ______________________________
CITY ATTORNEY CITY CLERK
Docusign Envelope ID: 52F6EEC7-843E-4115-8A89-913F24BAFC96
Senate District 7 - ADU Accelerator Program | GUIDELINES
Program Overview
Cities across California are ramping up efforts to encourage the production of accessory
dwelling units (ADUs) to help address the housing crisis. Some cities are taking steps to
encourage and facilitate the construction of ADUs through the development of permit -
ready plans, including architectural design work. Other cities are waiving processing fees
to bring down the cost of housing.
This new program will be piloted by Senator Glazer’s District 7, 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.
Program Funding
Section 19.564 of the Budget Act of 2023 provides $2,500,000 to be allocated by the
California Department of Housing and Community Development for implementation of
the ADU Accelerator Program (“Program”) to grant 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 Senate District 7, including: Antioch, Brentwood, Clayton,
Concord, Danville, Dublin, Lafayette, Livermore, Moraga, Oakley, Orinda, Pittsburg,
Pleasanton, San Ramon, and Walnut Creek.
•Qualifying cities must have a Certified Housing Element that meets the substantial
compliance requirements of Housing and Community Development.
ATTACHMENT B
SD7 ADU Accelerator Program | Guidelines Page 2 of 4
Program Details
1.Incentive Program. Available Funding: $1,725,000
A. 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; based upon the following
sliding scale:
•$15,000 for units < 50 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.
B. 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 will be provided for units that are deed restricted to
low-income households for a minimum of 20 years. Funds are awarded based
upon the following sliding scale:
•$7,500 for units < 50 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.
Example:
•City of Dublin has a population of 72,917 (as of January 1, 2024)
•Per Capita: $1.87
•Eligible for Award of $136,352 ($1.87 per capita x 72,917 population)
•Divided by average of $5,000 per unit (unrestricted)
Potential ADUs Added: 27 ADUs
SD7 ADU Accelerator Program | Guidelines Page 3 of 4
2.Permit Ready Prototype ADU Plans. Available Funding: $750,000
Qualified cities receive funding toward preparing prototypical permit-ready ADU
plans (“ADU Plans”), including design elevations and construction drawings. Permit-
ready plans are intended to streamline the ADU development process and facilitate
additional ADU development 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 may not be reimbursed 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 they share plans with.
Application Process
To receive funds, qualified cities must complete and submit an electronic application to
the Town of Danville, Fiscal Agent. All funds must be expended as prescribed below and
no later than September 30, 2026, after which these funds would be considered
unexpended “Excess Funds” subject to re-allocation.
Incentive Program
An application must include (a) the anticipated number of units proposed to be
produced through the program; and (b) 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 Town of Danville, Fiscal Agent, at the end of the 18-
month period and may be reallocated to cities that meet their targets and have
additional need.
Permit-Ready Prototype ADU Plans
An application must include (a) brief description of the plans to be developed
including the number of floor plans and ADU sizes; and (b) requested funding
amount. The maximum funding is $50,000 per agency. Cities may partner with other
eligible cities on applications in this category to leverage funding investment.
Funding will be distributed to cities upon receipt of the application. Permit-ready
plans must be completed and available to prospective permittees within 12 months of
grant award and include a city resolution adopting the ADU Plans.
SD7 ADU Accelerator Program | Guidelines Page 4 of 4
Excess Funds
Any funding that has not been expended pursuant to these program guidelines by
September 30, 2026, must be returned to the Fiscal Agent, the Town of Danville. These
Excess Funds will be reallocated to other eligible agencies pursuant to the Incentive
Program Guidelines. Funds will be re-allocated on a first come, first served basis. In the
event of multiple requests, consideration will be given to which city or cities will generate
the largest number of affordable units.
Application Deadlines
Applications are accepted via electronic submittal only
Incentive Program: September 1, 2024 – March 31, 2025 (may be extended if additional
funds are available to be rolled over from the Permit-Ready program).
Permit-Ready Prototype ADU Plans: September 1, 2024 – March 31, 2025.
Program Administration
As authorized through the California Budget Act of 2023 and the California Department
of Housing and Community Development, the Town of Danville will act as the fiscal
agent (“Fiscal Agent”) to receive funding applications and distribute Program funds. The
Town of Danville will receive a 1% fee ($25,000) for administering the program.
General program questions can be directed to Planning Division c/o Jessica Lam,
Town of Danville at jlam@danville.ca.gov or (925) 314-3337.
Applications and application-related correspondence can be directed to
SD7.ADUProgram@danville.ca.gov.
Biannual Reporting
Eligible recipients will be required to submit Biannual Progress Reports which
summarize the number of ADUs that have been permitted and finaled for the reporting
period as well as cumulatively for the life of the program through September 30, 2027.
Biannual Progress Reports will be filed with the Fiscal Agent at
SD7.ADUProgram@danville.ca.gov.
*Applications are accepted via electronic submittal only
Senate District 7 - ADU Accelerator Program
1.Rebate (Incentive) Program – Available Funding: $1,725,000
2.Permit-Ready Prototype ADU Plans – Available Funding: $750,000
Category 1 Category 2
HCD1 DOF2 Rebate (Incentive)PR Prototype Total
City/Town Certified Population Program3 ADU Plans Allocation
Antioch yes 115,632 216,228.77$ 50,000.00$ 266,228.77$
Brentwood yes 64,811 121,194.85$ 50,000.00$ 171,194.85$
Clayton no 10,683 19,976.93$ 50,000.00$ 69,976.93$
Concord yes 121,513 227,226.08$ 50,000.00$ 277,226.08$
Danville yes 42,567 79,599.16$ 50,000.00$ 129,599.16$
Dublin yes 72,917 136,352.85$ 50,000.00$ 186,352.85$
Lafayette no 24,808 46,390.30$ 50,000.00$ 96,390.30$
Livermore yes 84,828 158,626.11$ 50,000.00$ 208,626.11$
Moraga yes 16,784 31,385.63$ 50,000.00$ 81,385.63$
Oakley yes 45,736 85,525.10$ 50,000.00$ 135,525.10$
Orinda yes 19,191 35,886.66$ 50,000.00$ 85,886.66$
Pittsburg no 75,085 140,406.96$ 50,000.00$ 190,406.96$
Pleasanton yes 75,960 142,043.18$ 50,000.00$ 192,043.18$
San Ramon yes 82,525 154,319.56$ 50,000.00$ 204,319.56$
Walnut Creek yes 69,433 129,837.87$ 50,000.00$ 179,837.87$
922,473 1,725,000.00$ 750,000.00$ 2,475,000.00$
1% Administrative Fee3 25,000.00$
Total SD7 ADU Accelerator Program Funding 2,500,000.00$
Notes
1 - HCD Certified Housing Element Status through September 1, 2024
2 - State Departmetn of Finance Population as of 1/1/2024
3 - Per capita allocation of $1.87
4 - Total allocation net of 1% administrative fee to the Town of Danville serving as Fiscal Agent
ATTACHMENT C