Home Repair and Preservation Financing

Plus One Ancillary Dwelling Unit (ADU) Program

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ADU Program

An Ancillary Dwelling Unit (ADU), also known as an Accessory Dwelling Unit, is a small, independent residential dwelling unit located on the same lot as your home. The unit could be located within the existing home or could be a fully independent and detached structure. ADUs come in a variety of types, including basement apartments, attic conversions or in-law suites.

ADUs can serve a number of different purposes providing housing to family members or serving as an added source of income for household expenses by renting an additional unit.

How Does the Program Work

ADU Program

The Plus One ADU Program will combine low or no-interest capital loans and construction financing grants provided by the New York State Homes and Community Renewal for up to 15 eligible homeowners to build or convert ADU’s on their property.

In partnership with Restored Homes HDFC, the program will provide homeowners with financial and technical support, including predevelopment and construction resources on a single-family property where the existing zoning allows for one additional unit. ADUs financed through the program will become safe, habitable, and potentially rent-restricted units that will help homeowners generate additional income and support long-term homeowner and neighborhood stability.

Partners 

Restored Homes Housing Development Fund Corporation (Restored Homes) serves as the program administrator and development partner for the Plus One ADU Program. Restored Homes was incorporated in 2005 to develop, on a not-for-profit basis, housing projects for individuals and families of low- and moderate- income. Through its established partnerships with government, lenders, and community partners, Restored Homes has remained at the forefront of affordable homeownership programs focused on one- to four- family homes. Restored Homes will work with participants of the Plus One ADU Program by providing application assistance and facilitation of program processes from pre-development through construction completion, including coordination with registered design professionals and general contractors. Restored Homes will also provide technical support, connecting homeowners to financial and landlord counseling resources, as required by the program. 

Eligible Homeowners

  • May earn up to 165% AMI or $213,840 for a two-person household. Preference will be given to homeowners who are at or below 100% AMI or $129,600  for a two-person household.
  • Must be owner-occupant
  • Must be current on any existing mortgages and not have outstanding municipal arrears or be in an active payment plan

Eligible Buildings

  • Detached or semi-detached homes with 1-2 existing units
  • Homes that allow for two-family construction under the existing building and zoning code
  • Homes must pass a housing quality inspection and not require any major repairs other than those that are essential to the ADU construction scope
  • Eligible homes must either be free of housing or building code violations prior to receiving program financing, unless the violations are directly related to ADU, or the owner must agree to address all existing violations prior to ADU construction completion.
  • Homes must be located outside of the Special Coastal Risk District according to FEMA’s Flood Zone Designation.
  • For basement conversions, the applicable ADU space must meet ceiling height requirements prior to conversion and must be located outside of the 2050 Stormwater Flood area as well as the 2100’s 100-year coastal flood zone.

The following ADU typologies may be eligible to participate in the program:

  • Attached ancillary structures (ex. Attached garages), detached existing structures or newly constructed structures
  • Basement or attic unit conversions

How To Apply

  • The program launched on November 21, 2023 and interested homeowners had until February 13, 2024 to complete the Plus One ADU participant survey to be considered for participation in the pilot program. While the current application period has closed, please sign up below to receive updates related to ADU initiatives throughout the City, including City of Yes for Housing Opportunity, NYC’s plan to modernize and update our city’s zoning regulations.

Resources

Contact

Homeownership Opportunities & Preservation
100 Gold Street, Room 9S-11
New York, NY, 10038
PlusOneADU@hpd.nyc.gov