Adams announces more funding to help NYC homeowners build accessory dwelling units

August 6, 2024

New York City will expand a pilot program that helps homeowners build accessory dwelling units (ADUs) on their properties. Mayor Eric Adams this week announced an additional $4 million in state funding for the pilot program “Plus One ADU,” launched last November. With the additional funds, the program will provide $395,000 to up to 35 homeowners to build or convert an ADU on their property.

Image courtesy of the NYC Department of City Planning

Adams’ ADU push is part of his “City of Yes for Housing Opportunity” zoning text amendment, which aims to create over 100,000 new homes in NYC over 15 years by updating restrictive zoning rules to allow for a “little more housing in every neighborhood.” This includes permitting one- or two-family homes to add an ADU of up to 800 square feet.

ADUs can provide housing for loved ones or caretakers, bring in extra income, or provide more space for families to grow.

Currently under public review, the City of Yes text amendment has faced backlash from local community boards and some elected officials. According to City Limits, almost half of the city’s community boards found the amendment to be “unfavorable.” Staten Island Borough President Vito Fossella came out against the proposal and Queens Borough President Donovan Richards hinted he might not support the ADU proposal as is, according to Crain’s.

First launched in November 2023, the “Plus One ADU” offered 15 owners of single-family homes up to $395,000 to build ADUs on their properties. The additional $4 million allows Housing Preservation and Development to help 20 more homeowners.

“From seniors struggling to age in place, to young families stretching to pay the mortgage, adding a small backyard cottage or basement apartment can be life changing,”  Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer said. 

Torres-Springer continued: “Through ‘City of Yes for Housing Opportunity,’ we’re making it easier for homeowners to earn extra income or provide space for multi-generational families. And by giving homeowners who add a new unit the full support of government, we are going to give New York families even more opportunity for homeownership and to build intergenerational wealth.”

The pilot program will provide homeowners with financial and technical support, from predevelopment to construction. Adams also announced plans for a “one-stop shop” to provide resources for New Yorkers looking to add or convert an ADU, including step-by-step guides, and a library of pre-approved designs that will accelerate permit approval times and lower costs for homeowners. The pre-approved models follow proven designs in cities like Los Angeles and Eugene, Oregon.

The types of homes eligible for ADUs are:

  • One-unit, single-family detached residential homes.
  • Homes that allow for two-family construction under the existing building and zoning codes.
  • Homes that can pass a housing quality inspection and need no major repairs other than repairs essential to the ADU construction scope.
  • Homes that are free of housing or building code violations before receiving program financing, unless the violations are directly related to ADU, or the owner must agree to address all existing violations before ADU construction completion.
  • For basement apartment conversions, the ADU space must meet ceiling height requirements before conversion and be located outside of the 2050 Stormwater Flood area as well as the 2100’s 100-year coastal flood zone.

“For our seniors fighting to stay in the neighborhoods they call home or young people struggling to find a living space, accessory dwelling units can be a lifeline to stable, affordable housing,” Adams said.

“For too long, our policies have lived in the past and ignored the present: We are facing a generational housing crisis. The only solution is to build more and make it easier, not harder, for homeowners to join government in addressing this crisis head on.”

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