Mayor Mamdani Unveils New Tools and Financing to Help Homeowners Add Ancillary Dwelling Units

New York City Mayor Mamdani has announced the reopening of the Plus One ADU program, which provides homeowners with up to $395,000 in financial support and technical assistance to build accessory dwelling units on their properties.

The program, funded through the City and New York State Homes and Community Renewal grants and operated with partner Restored Homes HDFC, received over 1,300 applications within two weeks of its initial launch before closing to new applicants in February 2024.

The initiative aims to address the city's housing crisis by helping homeowners add backyard cottages or convert existing spaces like garages and attics into rental units.

The program's relaunch follows regulatory changes enabled by the City of Yes for Housing Opportunity initiative, which allows one- and two-family homeowners in much of New York City to add ADUs to their properties.

Deputy Mayor for Housing and Planning Leila Bozorg emphasized that ADUs serve as an important tool for homeowners to create additional living space, generate rental income, and remain in their communities.

While this specific program operates in New York, the initiative reflects a broader national trend of cities and states implementing policies to encourage ADU development as a solution to housing shortages.

California homeowners and developers may find similar opportunities through state and local ADU programs that have emerged following California's own regulatory reforms to streamline accessory dwelling unit construction.