ADU Incentive Program

  1. 1
  2. 2
  3. 3

The City of Milpitas Building Safety and Housing Department launched the ADU Initiative and Safe ADU Legalization Programs on March 24, 2022. Under these programs all of the permit fees for an ADU or JADU are subsidized using ARPA (American Rescue Plan Act) funds. The programs have proved to be enormously successful. So much so, that the initial funding provided has been expended! The City is diligently working to find additional funding to allow the subsidies to continue until the end of 2024, however, there will be a pause in providing the subsidies starting on Friday February 9, 2024. 

The City is hopeful that funding for the subsidies can recommence by mid-March 2024, if not sooner. In the meantime, applications for ADUs can be submitted as usual, but the fee subsidies will not be available at this time.

Milpitas & ADUs

The City of Milpitas is launching the Accessory Dwelling Unit (ADU) Incentive Program 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 and the City Council has also allocated (ARPA) funding to be utilized under this ADU program.

The Accessory Dwelling Unit (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 Building Safety and Housing Department launched this program March 24, 2022. Prior to that, there was an outreach period when the city had initiated efforts including a workshop on March 23 from 4 to 5 pm, announcements on social media platforms, and posts of informational flyers on the city website and Permit Center counter.

Additional ADU Information

Thinking of doing an Accessory Dwelling Unit (ADU)? For more information, view the new ADU Incentive Program Flyer (PDF) and learn more about the ADU Incentive Program, where the ADU Permit is free to you.

An ADU Workshop was held on March 23, 2022 at 4 pm. Get more information with the ADU Workshop (PDF) or the ADU Workshop PowerPoint.

For questions regarding the legalization of existing ADUs, please visit the Safe ADU Legalization Program page, send an email to Safe ADU, or call 408-586-3220.