Home | City of MilpitasThe City of Milpitas is scheduled to launch the Accessory Dwelling Unit (ADU) Incentive Program in conjunction with the Safe ADU Legalization Program on March 24, 2022. The Programs are designed to encourage residents to obtain ADU permits to ensure that new ADUs and existing but unpermitted ADUs are compliant with building codes and meet health and safety standards. The federal government has allocated American Rescue Plan Act (ARPA) funding to the City of Milpitas for communities and organizations that have been adversely impacted by the COVID-19 pandemic.

The City Council has allocated $1,290,000 of (ARPA) funding to be utilized under these two ADU programs. 

The ADU Incentive Program, by use of ARPA funds to cover permit costs, which average $5,000 per ADU, will provide more housing, foster economic growth through increased construction activity, and enhance property values. In response to COVID-19 impacts, it is important to encourage and assist residents to obtain permits so the health and safety of occupants can be addressed through the application of codes and standards.

The Safe ADU Legalization Program will also provide payment of ADU fees by ARPA funds to assist and encourage residents to legalize and improve the safety of ADUs that were constructed or converted without permits. This reduces possible unknown risks to occupants by providing a level of assurance for life safety through code compliance. For the property owner, it can provide ease of mind for concern of sanctions due to the discovery of illegal construction, while enhancing property values and reducing liability in the event of a property loss caused by non-permitted conversions or construction of an ADU.