New York City Offers ADU Assistance, Funding Programs
NEW YORK—New York City Mayor Zohran Kwame Mamdani unveiled a new set of tools to make it easier for homeowners to add an ancillary dwelling unit (ADU) to their property.
The city’s new ADU for You website ( https://housing.hpd.nyc.gov/adu ) features an ADU Guidebook, a growing Pre-Approved Plan Library, and 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.”
The city will also newly reopen applications for the Plus One ADU program, which offers financial and technical assistance to qualified homeowners to add an ADU. The Plus One ADU program, established with city funding and grants provided by the New York State Homes and Community Renewal, and operated in partnership Restored Homes HDFC, provides homeowners with up to $395,000 in financial support and technical assistance to add an ADU.
City officials noted that the Plus One ADU program saw overwhelming interest from New Yorkers when it first launched, receiving more than 1,300 submissions within two weeks, but has been closed to new applicants since February 2024.
“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,” said Mayor Mamdani. “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.”
Thanks to City of Yes for Housing Opportunity and subsequent regulatory changes, one- and two-family homeowners in much of the city can add an ADU to their properties.
In addition to helping homeowners understand the regulations and access financing to build an ADU, the Mamdani administration is also launching a simplified permitting process for pre-approved ADU plans. This pre-approved plan library is launching with 11 ADU designs that have already been reviewed and approved by the Department of Buildings. The city will connect homeowners who select an ADU option from this library with the registered design professional who created the design in order to obtain site-specific approval. DOB will 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.
