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If you own property inside the St. Petersburg Community Redevelopment Area (CRA), you are sitting on the city’s most lucrative zone for building an Accessory Dwelling Unit (ADU).
While citywide funding pools fluctuate, the St. Pete CRA maintains dedicated housing-based grants. Eligible homeowners can secure a 40% rebate on pre-approved construction costs (up to a $40,000 maximum rebate per residential unit) to build an affordable rental or workforce ADU.
Rebate amounts, funding availability, and eligibility are subject to City approval and confirmation.
The St. Pete Advantage
- Targeted Funding: CRA funds are specifically earmarked to incentivize development right in your neighborhood.
- Surprisingly High Income Limits: The program’s affordable housing requirements use income limits of up to 120% of Area Median Income (AMI) for qualifying households. The FY 2026 limit for a 2-person household is $110,040, and for a 4-person household, it is $137,640. These limits relate to affordable housing eligibility and should not be assumed to be the homeowner’s personal income qualification.
- Affordable Housing Match: The program requires the newly built ADU to be rented at affordable workforce rates, turning your backyard into an immediate income generator while serving the community.\
The following income limits apply to qualifying households under the 120% AMI threshold, not automatically to the property owner applying for funding.
| Household Size | Maximum Household Income Limit (120% AMI) |
| 1 Person | $96,360 |
| 2 People | $110,040 |
| 3 People | $123,840 |
| 4 People | $137,640 |
See the full income bracket table at the official City of St. Petersburg Income Limits Directory.
Important: Important: CRA-funded affordable housing may come with long-term rental affordability requirements. The City’s published guidelines describe a 20-year affordability period for new rental housing. Homeowners should confirm the applicable requirements and current eligibility rules with the City before committing to construction.
The Catch: You Must Use a Licensed Contractor
You cannot hire an unlicensed handyman or build the ADU yourself. The city strictly mandates that all rebated work must be performed by a state-licensed contractor registered with the Pinellas County Construction Licensing Board. Furthermore, if you pour concrete before getting written city pre-approval, you lose the rebate entirely.
Information based on publicly available program guidance as of October 2026. Rebate amounts and eligibility are subject to confirmation by the City of St. Petersburg.
