One Plus ADU Program in New York

The Accessory Dwelling Unit (ADU) Program is a governmental house funding program aiming at fighting the housing shortage and helping low-income homeowners exploit their properties. In New York, the Plus One ADU Program was launched as a pilot program in November 2023 and with it, eligible homeowners can receive up to $125,000 in funding to use in the design and construction of an ADU on their property.

So, if you own a single-family house in New York and you want to create:

- an extra rental unit to gain additional income
- a separate unit for a family member to use (e.g. it can be your aging parent or your graduate child who seeks more independence)
- more space to use as a home office, gym, or as a guest house[1] , then this article will give you all the information you need.

Here is a quick guide to find out how you can build your Accessory Dwelling Unit in New York with financial assistance from the State’s.

But first things first.

What Is An Accessory Dwelling Unit (ADU)?

An Accessory Dwelling Unit is a secondary living space with its own kitchen, bathroom, and entrance, located on the same property as your primary residence.

ADUs may come in various forms, depending on the property and local regulations. They can be attached (part of your primary house) or standalone (detached) units situated on single-family lots However, it is important to keep in mind that not all municipalities in New York allow ADUs. Your property needs to adhere to local requirements and jurisdiction to be eligible for the program and thus benefit from this grant.

What Are The Benefits Of New York’s ADU Program?

It creates from every aspect a beneficial scenario for the homeowners. The people who own the residence can:

1. Create extra living space, expand the useful spaces of their property, and make room for more room for family members, visiting friends and in-laws

2. Accommodate an aging parent who can live independently yet close to your family and enjoy their care and attendance.

3. Host their young offspring who seek their independence and privacy but are not ready to finance rental costs.

4. Ensure an additional and passive stream of income since the ADU can be rented either short-term or long-term. Landlords can use this additional cash flow to complement their basic income or pay for the ADU’s maintenance expenses.

5. Increase the value of their property substantially. Research shows that building an ADU in your house or yard can raise your property’s value to 34%.

Who Can Be Eligible For The Program?

Homeowners must own and occupy a residence in New York and earn a low or moderate income. More specifically they should also meet the following criteria:

• Earn up to 165% of the Area Median Income (AMI)[1] or $186,450 for a two-person household, although priority will be given to those who are close to or don’t even reach the 100% AMI for a single-person household or $113,000 for a two-person household. Learn more on Area Median Income here.

• Not be in an active payment plan or have any outstanding fees or fines related to their Municipality.[6]

• Be current on any existing mortgages.

What Does The Program Cover?

With the participation of the Housing Trust Fund Corporation and the Housing Action Council, the program grants up to $125.000 for up to 15 eligible homeowners to cover almost every cost needed to build and complete their “casita”. T[8] [9] he pre-development, construction oversight, and post-construction monitoring actions from designing the ADU and ensuring its permits, to budgeting the project and training the landowner to stick to the program’s rules can all be covered by the program.[10]

However, depending on the size and the location of the ADU the cost of its design and construction can easily exceed the amount of $125,000.

Which Areas Participate in the NY ADU Program?

The following municipalities have been awarded to launch the program in their areas and thus further promoting its expansion to other cities: If you live and own a single-family property in one of these municipalities, you may be eligible to benefit from the Plus One ADU program.

• Amherst

• Babylon

• Bedford

• Brookhaven

• Dobbs Ferry

• Hastings-on-Hudson

• Huntington

• Irvington

• Ithaca

• Kingston

• New York City

• Shelter Island

• Southampton

• Southold.

Want To Find Out If You Are Eligible? [11]

The pilot program was launched on November 21, 2023, and the interested landowners will have until February 13, 2024, to complete the relevant survey and be evaluated for their eligibility. So, if you want to apply for the pilot program you should take this survey first: Plus One ADU Participant Survey.

However, submission of the survey does not automatically determine your eligibility. Your responses will be reviewed, you will be contacted for a preliminary assessment by the Restored Homes HDFC which is the program’s administrator, and within 90 days you will be notified via email if you qualify to move forward with the application process.

What Happens If You Qualify For The Program?

Once you are selected to participate in New York’s Plus One ADU Program, you will have to:

- pass a housing quality inspection by the Restored Homes HDFC

- qualify for financing and loan terms based on your household income

- pay your application fee which will cost you $200 that is non-refundable.

Not Sure How To Make The Most Of Your Property?

If you want to find out how you can make the most of your living space with this program don’t hesitate to contact us for a free-of-charge consultation call and learn how you can benefit from New York’s ADU Program.

The application date for the pilot program expires on February 13th so hurry up! Schedule a consultation call now and make the most of the program!
[1] AMI: (AMI) is the midpoint of a region's income distribution – half of families in a region earn more than the median and half earn less than the median.