A new set of tools designed to make it easier for homeowners to stay in their communities and bring in extra income by adding an ancillary dwelling unit (ADU) to their property, have been announced by New York City Mayor Zohran Mamdani.
“One of the solutions to the housing crisis can be found in our backyards, our attics, or our basements – in an Ancillary Dwelling Unit. That’s why our administration is making it easier and more affordable to build an ADU through a library of pre-approved plans and new financing options,” Mamdani said in his announcement. “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.”
The city said its “ADU for You” website features an ADU Guidebook, a Pre-Approved Plan Library, site feasibility analysis, and cost estimating tools to help homeowners navigate bureaucratic and financing details when adding an ADU such as a backyard cottage or “in-law unit.”
Also, the city said it will reopen applications for the Plus One ADU program that offers financial and technical assistance to qualified homeowners to add an ADU.
Financial Support, Technical Assistance
The Plus One ADU program was established with city funding and grants provided by the New York State Homes and Community Renewal, and operated in partnership Restored Homes HDFC. It provides homeowners with up to $395,000 in financial support and technical assistance to add an ADU.
The program received great interest from New Yorkers when it first launched, receiving over 1,300 submissions within two weeks, but has been closed to new applicants since February 2024.
“In the midst of a dire housing crisis, ADUs are an important tool for homeowners to add space, bring in extra income, and stay in their communities – but creating an ADU can feel out of reach for too many New Yorkers. These new tools will help ensure that any New Yorker who wants to add an ADU is able to do,” said Leila Bozorg, Deputy Mayor for Housing and Planning. “Whether you are interested in adding a new backyard cottage or converting an underused garage or attic into housing, we have resources to help guide you through the process.”
Buildings Commissioner Ahmed Tigani said there is great potential for the program.
“Ancillary dwelling units have the potential of unlock thousands of safe, quality homes for New Yorkers in low density neighborhoods across the city,” Tigani said. “However, these homes will not get built if the permitting process places too many barriers in the way. Today’s announcement includes multiple tools that will help remove these barriers, including the new Pre-Approved Plan Library which gives New Yorkers a menu of potential design options that have already undergone an initial review by DOB for code-compliance leading to faster approvals.”
Sideya Sherman, Director of the Department of City Planning, said the program could unlock potential housing.
“By making it easier to navigate rules and offering pre-approved designs, this new homeowner toolkit will help New Yorkers turn the idea of an accessory dwelling unit into a reality,” said Sideya Sherman, Director of the Department of City Planning. “Building on City of Yes for Housing Opportunity, this is another smart step to unlock housing, allow working families to earn additional income, and help seniors afford to age in place.”
Clear Path Forward
“New York City needs more housing. Some of it is going to come from backyards and basements — and that is not a small thing. ADU for You makes it possible for homeowners who want to be part of the solution to actually do it, giving New Yorkers the plans, the financing, and a clear path forward,” said Dina Levy, Housing Preservation and Development (HPD) Commissioner.
In addition to helping homeowners understand the regulations and access financing to build an ADU, the city also is launching a simplified permitting process for pre-approved ADU plans.
The city said the pre-approved plan library is launching with 11 ADU designs that already have been reviewed and approved by the Department of Buildings.
The city will connect homeowners who choose an ADU option from the library with the registered design professional who created the design in order to obtain site-specific approval. The Department of Buildings will then review and add additional pre-approved plans as they are submitted by design professionals.
“Governor Hochul’s Plus One ADU Program is increasing housing supply and providing an extra source of income for homeowners in New York City and across the state. The $85 million program was launched in 2023 with the city of New York and six other partners – the program has since grown and we currently have 14 partners working to create more than 550 ADUs throughout the state. HCR is looking forward to seeing all 37 projects in New York City completed, and we are confident these projects will have a transformative effect on the City’s housing landscape,” said RuthAnne Visnauskas, Commissioner, New York State Homes and Community Renewal.
