New York allocates $59M for ADU projects, boosting affordable housing efforts


New York Construction Report staff writer

Local governments and non-profit organizations will share $59 million for projects aimed at increasing housing supply by providing resources for low- and middle-income homeowners to build or improve an accessory dwelling unit on their property.

The goal is to create about 500 ADUs across the state. Property owners in Long Island, Westchester County, Ulster County, and the town of Amherst are set to begin construction on the first two dozen ADUs under Round One of the program.

“The lack of affordable housing opportunities impacts every community across the State,” Governor Kathy Hochul said at the funding announcement. “The ADU Plus One program creates more affordable housing options for New Yorkers while also helping property owners. By bringing together government, municipalities, nonprofits, and homeowners, we’re building a stronger and more affordable future for all New Yorkers.”

The ADU Plus One program, administered by New York State Homes and Community Renewal, provides up to $2 million in grants to municipalities and nonprofit organizations that are committed to building or improving safe, high-quality accessory dwelling units.

Municipalities and their non-profit partners work directly with homeowners to build out the ADUs, including by converting garages or other ancillary structures, constructing new detached units, and undertaking work related to legalization of basement apartments.

In the first funding round, HCR awarded $22 million to program administrators working in partnership with 17 municipalities to provide grants to individual homeowners for 200 ADUs. The $36.5 million second round of funding brings the number of municipalities participating in the program to 50 and will lead to the creation of more than 300 additional ADUs.

“This $85 million ADU Plus One program is a model for communities across New York State as they work to address the housing crisis and increase housing supply,” said HCR Commissioner RuthAnne Visnauskas. “With the nearly $60 million awarded thus far to create ADUs from Western New York to Long Island, Governor Hochul is providing opportunities for young people, seniors, and families to live in quality housing in the communities they call home, while at the same time empowering homeowners to gain a reliable source of rental income.

“We are thrilled that 50 municipalities are already seeing the value of this innovative program in their communities. ADU Plus One promises to be a win-win for all.”

HCR will release a third round of funding for the program later this year.


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