Mamdani Reopens Financing for ‘Granny Flats’ in NYC After Two-Year Pause

New York City has relaunched its Plus One ADU program after a two-year suspension, offering homeowners up to $395,000 in loans and technical support to build accessory dwelling units on their properties.

Mayor Zohran Mamdani announced the reopening Wednesday as part of the city's broader strategy to address housing shortages through increased density options for property owners.

The program's initial round attracted approximately 2,800 applications, primarily from Queens, Staten Island, and The Bronx, with about 25% of applicants qualifying for financing.

City officials estimate the current funding will support around 35 homeowners in adding ADUs such as backyard tiny houses, garage apartments, or attic conversions to their properties.

The two-year pause was implemented to process the substantial application backlog from the program's launch.

California property developers and homeowners may find parallels in New York's approach, as both states have embraced ADUs as housing solutions.

California's SB 9 and other recent legislation have streamlined ADU permitting processes, allowing homeowners to add secondary units to single-family properties with reduced regulatory barriers.

The New York program's focus on providing both financing and technical assistance could serve as a model for California communities seeking to boost ADU development beyond regulatory reform.

As housing costs continue rising in both states, ADU programs represent a growing trend toward utilizing existing residential properties more efficiently while generating additional income for homeowners.