Garage Studios, Basement Apartments, and Backyard Cottages: HPD Announces Pilot Program Helping Homeowners Add New Small Homes Across NYC

Grandparents and Young Families Stand to Benefit from A New Program Creating In-Law Suites and Other Small Homes Without Significantly Changing Existing Neighborhoods 

New Program Gauges Interest in Adding Small Homes in Line with Goals of the City of Yes for Housing Opportunity Proposal to Build a Little More Housing In Every Neighborhood

New York City Department of Housing Preservation and Development (HPD) Commissioner Adolfo Carrion Jr. announced the launch of a new pilot program to help homeowners add an additional small home to their properties as part of the Adams administration’s efforts to build a little more housing in every neighborhood. Now open to applicants, the “Plus One ADU” pilot program provides up to $395,000 in funding through HPD and $2.6 million in grant funding from New York State Homes and Community Renewal (HCR) to qualified homeowners to build “accessory dwelling units,” or ADUs, such as backyard cottages, garage studios, attached in-law suites, basement apartments, and attic space conversions. The pilot program aims to support working- and middle-class families, including seniors hoping to spend their retirement years in their chosen neighborhood, young parents in need of space for their in-laws, families with children returning from college, and homeowners looking for an extra source of income.    

“Every day, our administration finds new ways to make life a little easier for working-class New Yorkers and give them the tools they need to thrive in this city,” said Mayor Adams. “By paving the way for easier, more affordable accessory dwelling unit conversion, we are delivering a tangible win for families. Whether it’s for seniors who need space for a caregiver, a multigenerational household who want separate living spaces, or young parents with a little one on the way, an ADU can offer the flexibility families need to make New York City work for them. As a critical piece of our ‘City of Yes’ proposal to build a little more housing in every neighborhood, we are thrilled to welcome the launch of this pilot and see how ADUs can add the housing we need for families across the five boroughs.” 

Across the city, homeowners face challenges with rising costs and aging in place. City and state Regulations limit what New Yorkers can do with their own property, which can force families to move farther away from their loved ones or are forced into uncomfortably cramped houses. Meanwhile, spaces like garages, attics, basements, and backyards can go unused when small improvements could make them into comfortable homes. For seniors fighting to stay in their neighborhood on a fixed income, or young people stretching to afford a first home, adding an ADU to their property can be life changing. But under current rules, homeowners can’t always choose to alter their properties in this way.   

To combat New York City’s housing crisis, the Adams administration has proposed a set of citywide zoning changes as part of its historic City of Yes for Housing Opportunity plan led by the Department of City Planning (DCP). While the proposal advances through environmental review, HPD is continuing to find creative solutions within the city’s existing zoning and building codes, such as the Plus One ADU pilot program, to demonstrate the potential for ADUs to deliver cost-effective benefits to both homeowners and the city, and the ability to deliver these results without significantly changing the look and feel of a neighborhood.    

ADUs deliver enormous benefits to homeowners and renters across the country and is an exciting opportunity for creating more housing in New York City. Backyard cottages, garages and other existing spaces can add new homes and support homeowners without significantly changing a neighborhood’s character. ADUs can provide homeowners with a little extra income while creating new housing in the process – each unit representing a potential home for grandparents helping to raise their grandchildren, or for recent college graduates returning to start their careers in New York City.     

Through the initial pilot program, HPD aims to help up to 15 single-family homeowners build ADUs on their properties working in partnership with Restored Homes HDFC. Each new home must comply with existing zoning and building codes and other requirements, ensuring they are safe and fit within the existing neighborhood. Funding for the Plus One ADU pilot program includes $2.6 million in grant funding from the State of New York provided through HCR’s competitive request for proposal process. The City will match the State’s funding to provide financing of up to $395,000 for each homeowner.     

The Plus One ADU pilot program is now open for applications from qualified homeowners across the five boroughs. To find more information about the program and how to participate, visit the HPD website.    

  The New York City Department of Housing Preservation and Development (HPD) promotes quality and affordability in the city’s housing, and diversity and strength in the city’s neighborhoods – because every New Yorker deserves a safe, affordable place to live in a neighborhood they love. We maintain building and resident safety and health, create opportunities for New Yorkers through housing affordability, and engage New Yorkers to build and sustain neighborhood strength and diversity. HPD is entrusted with fulfilling these objectives through the goals and strategies of Housing Our Neighbors: A Blueprint for Housing and Homelessness, Mayor Adams’ comprehensive housing framework. To learn more about what we do, visit nyc.gov/hpd and connect with us on Facebook, Twitter, and Instagram @NYCHousing.