New York City Mayor Mamdani announced on March 18 the launch of a new simplified process and financing program to assist homeowners in adding backyard cottages or other small accessory dwelling units (ADUs) to their properties. The city has also reopened the application process that was closed in February 2024.
The new city government program, “ADU for You,” includes an ADU guide, a pre-approved scheme library, as well as tools for site feasibility analysis and cost estimation. It aims to help property owners streamline the bureaucratic procedures and financing details when adding ADUs like backyard cottages or in-law units, making it easier for them to retain their community properties and generate additional income.
New York City is reopening the financing program “Plus One ADU” for eligible homeowners, providing funding and technical assistance for them to add accessory residential units. The program offers up to $395,000 in financial support and technical assistance for constructing ADUs.
The program has been warmly welcomed by New Yorkers, with over 1300 applications received within two weeks of its launch. It had stopped accepting new applications since February 2024, and this recent reopening is a major development.
“An answer to the housing crisis can be found in our backyard, attics, or basements – by constructing an accessory residential unit,” Mayor Mamdani stated in a release. “By simplifying the process for New Yorkers to convert their homes into additional living spaces for family members or income-generating units, we can foster urban growth while preserving the beloved characteristics of our communities.”
Thanks to the “City of Yes for Housing Opportunity” program and subsequent regulatory reforms, owners of one- and two-family homes in New York City can now add ADUs to their properties.
The program’s pre-approved scheme library initially includes 11 ADU designs approved by the New York City Department of Buildings (DOB). The city government will connect homeowners who select a design from the library with registered design professionals for site-specific approval. The housing department will continue to review and add more pre-approved designs.
Led by the state government with an $85 million investment, the initiative was launched by the New York City government and six partners in 2023, expanding over time with 14 partners now dedicated to constructing over 550 ADUs statewide.
This move is considered a wise step in expanding New York City’s housing supply while supporting the community.
Pre-approved ADU designs can be found at: https://housing.hpd.nyc.gov/adu/library or by scanning the QR code provided.