City of Walnut Creek
Home MenuAccessory Dwelling Unit (ADU) Rebate Program
New Program Provides Rebates for ADU Construction
Cities across California are encouraging the building of accessory dwelling units (ADUs) to help address the housing crisis. The Senate District 7 ADU Accelerator Program, piloted by Senator Steve Glazer, provides rebates for homeowners building ADUs.
Program Qualifications
- The program period runs from October 1, 2024 - August 31, 2026
- Rebates are limited to individual homeowners
- Only one rebate is allowed per individual or entity within the City of Walnut Creek
- Only one rebate will be awarded per single-family residential lot or assessor parcel number (APN)
- ADU units must be 1,000 square feet or smaller
Rebate amounts
Non-restricted ADUs
Homeowners can get rebates of up to $7,500 if they get a building permit to build an ADU and receive a certificate of occupancy within 18 months or by 9/30/2026, whichever comes first. The rebate amount depends on the size of the ADU:
- $7,500 for units smaller than 500 square feet
- $5,000 for units between 501-750 square feet
- $2,500 for units between 751-1,000 square feet
Low-Income Restricted ADUs
Homeowners can get rebates of up to $15,000 if they get a building permit to build an ADU and receive a certificate of occupancy within 18 months or by 8/31/2026, whichever comes first.
Rebates will be given for units that are deed restricted to low-income households for at least 20 years. See our Sample Regulatory Agreement for more details. The rebate amount depends on the size of the ADU:
- $15,000 for units smaller than 500 square feet
- $10,000 for units between 501-750 square feet
- $5,000 for units between 751-1,000 square feet
Before you start
- Review ADU construction application process
- Review our Pre-reviewed ADU plans for additional cost and time savings
ADU Rebate Process
Apply for an ADU Rebate
Applications can only be submitted online.
1. Submit an application
Fill out the form and submit it online to apply for the rebate. The amount of your rebate will depend on the size of the ADU and whether it’s intended for low-income use.
2. Wait for a response
You will receive an email from the City of Walnut Creek within 10 business days. If your application is approved, you will receive an application number. A rebate amount will be reserved for you and given once your ADU is ready for occupancy.
3. Obtain Building Permit for ADU construction
Within 6 months of submitting your rebate application, you must obtain an approved Building Permit for your ADU unit. You will receive an email confirmation once City staff has approved your building permit.
4. Obtain a Certificate of Occupancy
To receive your rebate, you must obtain a Certificate of Occupancy for your ADU within 18 months of the Building Permit issuance date or by September 30, 2026, whichever is sooner. If more time is needed, you may request an extension from the Community Development Department with a valid reason. You will receive an email confirmation once your Certificate of Occupancy is issued.
5. Receive your rebate
As long as you meet all the requirements, you will receive your rebate. You will receive an email confirmation when the rebate is issued. The rebate will be sent as a check made out to the property owner.
Program funding
Section 19.564 of the 2023 Budget Act sets aside $2,500,000 for certain cities in Contra Costa and Alameda Counties. This money is to encourage the building of accessory dwelling units (ADUs) to address California's housing shortage.
Among the 15 cities in the East Bay, eligibility for funding in the Incentive Programs is based on $1.87 for each resident. Population is based on the Department of Finance's population estimates as of January 1, 2024.
The available Funding for Walnut Creek is $129,837. Rebates are given on a first-come, first-served basis until all the funds are expended.
Contact
For additional information about this program, please email: ADUprogram@walnut-creek.org