A tiny house in a backyard. An apartment over a garage. A home in an attic.
These are just some types of ancillary dwelling units, or ADUs, New York City is making a concerted push to help legally build across the boroughs.
The Department of Housing Preservation and Development on Wednesday launched new resources to help homeowners add ADUs to their properties — and began once again accepting applications for a program to finance the projects. The program had previously been paused for two years.
Now, homeowners can search their address to find out which styles of ADUs — sometimes called granny flats or mother-in-law units — are allowed on their properties, estimate a budget for the project and walk through the process of constructing an ADU. Homeowners can also select from pre-approved ADU designs.
Homeowners interested in outfitting their properties with an ADU may apply to the Plus One ADU program, which provides up to $395,000 in loans as well as technical support in order to build an ADU. It’s the first time the city has accepted applications to the program in two years, having paused the program in order to sort through thousands of previously submitted applications.
As his administration announced the change, Mayor Zohran Mamdani framed ADUs as one of the solutions to the city’s housing crisis, echoing the argument city officials made during the administration of Mayor Eric Adams.
“By making it easier for New Yorkers to turn their homes into an extra place for a loved one or a little more income, we’re allowing our city to grow while keeping the character of the neighborhoods we love,” Mamdani said in a statement.
The first call for applications for the Plus One ADU program drew about 2,800 homeowners — mostly in Queens, Staten Island and The Bronx — with about 25% of those found eligible to apply for financing. Last year, HPD officials estimated they’d be able to offer financing to about 35 homeowners.
The city hasn’t yet closed on any loans, but a City Hall spokesperson indicated the city hopes to close on a first batch of loans this year. Applicants can now apply to the Plus One program through June 12.
Lots of Interest, Lots of Red Tape
Under the citywide rezoning scheme known as City of Yes for Housing Opportunity, passed under Adams, owners of one- and two-family homes in certain neighborhoods could add an apartment in a basement, garage, attic or a free-standing cottage on their properties.
City of Yes has the potential to spur the creation of about 25,000 new ADUs in the next 15 years, which amounts to over 30% of the total new housing that could come from the rezoning scheme.
Homeowners can earn extra income from renting out the ADU, or can house family members in their own space on the property. But moving forward with a new ADU can be difficult, with red tape to navigate and confusion about where to begin.
“Creating an ADU can feel out of reach for too many New Yorkers,” Leila Bozorg, Deputy Mayor for Housing and Planning said in a statement. “These new tools will help ensure that any New Yorker who wants to add an ADU is able to do so.”
As THE CITY previously reported, there is wide interest in building ADUs across the boroughs.
In Staten Island, multiple developers last year gained approval to build homes with basement apartments — before rules governing ADUs and basement units actually went into effect. And city agencies are still finalizing rules to legalize illicit basement apartments, after safe housing advocates criticized the proposed regulations floated last year.
The first call for applications for the Plus One ADU program drew about 2,800 homeowners — mostly in Queens, Staten Island and The Bronx — with about 25% of those found eligible to apply for financing. Last year, HPD officials estimated they’d be able to offer financing to about 35 homeowners.
The city hasn’t yet closed on any loans, but a City Hall spokesperson indicated the city hopes to close on a first batch of loans this year. Applicants can now apply to the Plus One program through June 12.