New York City has resumed support for the construction of Ancillary Dwelling Units (ADUs), also known as “backyard detached houses,” to address the housing shortage.
On the 18th, New York City Mayor Zoran Mamdani announced, “One of the solutions to New York City’s severe housing crisis is to promote the creation of habitable ADUs in backyards, attics, and basements,” adding, “We have decided to restart the financial and technical support programs for ADU construction that had been suspended for the past two years.”
Named “Plus One ADU,” this program provides loans of up to $395,000 (at 0% or the lowest interest rates) and technical support for ADU construction. It also supports various types of ADU blueprints already approved by the New York City Department of Housing Preservation and Development. This program is designed to enable the fastest possible construction of ADUs by providing financial, technical, and blueprint support.
Eligibility requires applicants to be homeowners with an income at or below 165% of the local median income. The ADU area must not exceed 800 square feet, and in New York City, one unit may be built per home. The deadline for applications for the ‘Plus One Program’ is June 12.
According to the City Housing Preservation and Development Bureau, approximately 2,800 homeowners applied for this program, initiated by former Mayor Eric Adams, and about 25% were confirmed to be eligible. However, the program was suspended for two years due to reasons such as application review. The ‘City of Yes’ project, ambitiously launched by former Mayor Adams with the goal of expanding housing supply, centers on providing a total of 80,000 homes within the next 15 years, including the construction of 25,000 detached units.