The Mamdani administration announced March 18 the launch of new tools to help homeowners construct an ancillary dwelling unit (ADU) on their property, including several pre-approved plans and a reopened financing program.
Under the major zoning reforms collectively called City of Yes for Housing Opportunity, adopted in Dec. 2024, the city cleared the way for owners of one- and two-family homes to add a small extra unit to their property, such as a detached “tiny home,” a unit built above a new or existing garage, a unit attached to the home, or an attic or basement apartment — all of which create an extra home while maintaining neighborhood character.
These kinds of options, which were previously illegal in New York City, could help families keep their elderly relatives or grown kids nearby or bring in rental income with new tenants.
“One of the solutions to the housing crisis can be found in our backyards, our attics, or our basements – in an Ancillary Dwelling Unit,” Mayor Zohran Mamdani said in a statement.
“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 Mamdani administration rolled out the ADU for You website, which includes 11 different designs that have already been reviewed by the Department of Buildings and are therefore more likely to easily make it through the permitting process. Each plan includes multiple renderings, a site feasibility analysis, floor plans and cost estimates at the high and low ends.
The administration also announced the reopening of applications for the Plus One ADU program, which connects owners with low- or no-interest loans for their project, along with technical support, totaling up to $395,000.
The program, made possible with city funding and state grants, saw 1,300 applications during its pilot phase in late 2023 but has been closed to new applicants since Feb. 2024, according to the administration.
In addition to helping owners plan and afford their project, these city tools are also meant to create ADUs that are inspected and deemed safe.
Over the years, some homeowners have allowed, for instance, illegal basement apartments, some of which flooded during severe storms and resulted in dozens of fatalities.
Legalizing ADUs — and subjecting them to safety and zoning approvals — is a key step to opening up more housing throughout the city. A bill sponsored by Bronx Council Member Pierina Sanchez, who chairs the Committee on Housing and Buildings, is currently making its way through the process to clear the final legalization hurdles.
Although ADUs will be relatively uncommon under the relaxed zoning laws, they can still help chip away at the city’s housing shortage. The Department of Housing Preservation and Development (HPD) estimates that 25,000 units could be added throughout the city in the next 15 years.
“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 so,” said Leila Bozorg, Deputy Mayor for Housing and Planning.
Reach Emily Swanson at eswanson@schnepsmedia.com or (646) 717-0015. For more coverage, subscribe to our newsletter and follow us on Twitter, Facebook and Instagram!
