ADU Incentive Program

  1. 1 Wood Accessory Dwelling Unit (ADU) with front porch.
  2. 2 Gray Accessory Dwelling Unit (ADU).
  3. 3 White Accessory Dwelling Unit (ADU) with bicycle in front.

The City of Milpitas Office of Building Safety launched the ADU (Accessory Dwelling Unit) Initiative and Safe ADU Legalization Programs on March 24, 2022. Through these programs, permit fees for ADUs or JADUs (Junior Accessory Dwelling Units) were fully subsidized using ARPA (American Rescue Plan Act) funds. Due to the programs’ overwhelming success, the initial ARPA funding was fully expended, and the programs concluded in February 2024.  Given the continued interest in ADU development and the City’s ongoing housing objectives, the City is pleased to announce that the ADU incentive program is now reinstated with new funding through the Community Investment Fund.  This funding will support eligible ADU and JADU projects through permit fee assistance.  Please contact the Office of Building Safety at buildingpermitcenter@milpitas.gov (408) 586-3240 with any questions you may have regarding this notice.

Milpitas & ADUs

The City of Milpitas is reactivating the Accessory Dwelling Unit 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 City of Milpitas has allocated resources from the Community Investment Fund to support this ADU program. This program is only applicable to ADUs proposed on lots with single family residence or duplex and is not applicable to new development projects. The program will cease when the available funds are expended. Based on the projected number of ADUs anticipated to enter the program, it is projected that the entire program funding will be disbursed by the end of 2026. 

By covering permit costs, which average $5,000 per unit, the ADU Incentive Program aims to increase housing availability, foster economic growth through increased construction activity, and enhance local property values. 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.

Additional ADU Information

Thinking of doing an Accessory Dwelling Unit? 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.

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.