Home Repair and Preservation Financing

Plus One Ancillary Dwelling Unit (ADU) Program

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ADU Program

What is an ADU?

An Ancillary Dwelling Unit (ADU), sometimes called an Accessory Dwelling Unit, is a small, independent residential unit located on the same lot as a primary home. ADUs can provide housing for family members or tenants. They can also serve as an added source of income for homeowners by renting the unit. ADUs can be created within an existing home or built as a separate structure on the property.

Common types of ADUs include:

  • Basement apartments
  • Attic conversions
  • An Attached addition
  • A converted garage
  • Detached backyard unit

How the Program Works

The Plus One ADU Program provides financial and technical support to eligible New York City homeowners interested in building or converting an ADU on their property through low or no-interest loans or construction financing grants. Funding will be provided by the New York State Homes and Community Renewal and the NYC Department of Housing Preservation & Development. The program will be administered in partnership with Restored Homes HDFC, which supports homeowners through the entire process—from pre-development through to construction completion and initial unit lease-up.

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 will:

  • Provide application support to homeowners
  • Coordinate with design professionals, engineers, and contractors
  • Provide technical guidance throughout pre-development and construction
  • Connect homeowners to financial and landlord counseling services, as needed

Eligible Homeowners

  • May earn up to 165% AMI. Preference will be given to homeowners earning 120% AMI or below
    See AMI chart: Area Median Income - HPD (nyc.gov) for additional details 

  • Must be owner-occupant
  • Must be current on any existing mortgages
  • Have no outstanding municipal arrears or be in an active payment plan

Eligible Properties

  • Detached or semi-detached or semi-attached homes with 1-2 existing units
  • Homes that allow for the addition of an existing dwelling under the existing building and zoning code
  • Homes must 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 the 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 2080 100-year coastal flood zone 

Eligible ADU Types

  • Attached structures (ex. attached garages)
  • Detached existing structures (ex. detached garages or sheds)
  • Newly constructed detached structures
  • Basement conversions
  • Attic conversions

 About The Program

On November 21, 2023, the Plus One ADU Program launched in its pilot phase, inviting homeowners to express interest through a survey. The survey closed on February 13, 2024, and eligible homeowners from that pool were invited to apply for the pilot program.

On December 5, 2024, the New York City Council adopted City of Yes for Housing Opportunity, a major amendment to the city’s zoning text regulations. This zoning reform expanded opportunities for housing development in New York City and formally defined ADUs in the zoning code for the first time.

As a result of these changes, the Plus One ADU Program conducted a secondary review of the properties from the initial intake pool, allowing some homeowners who were previously ineligible under zoning to be reconsidered and deemed eligible to apply for the program.

The program has also collaborated with other City agencies to launch ADU For You, a resource hub for New York City homeowners interested in building an ADU independently. The website includes an ADU guidebook which explains the development process in detail, a library of DOB pre-approved plans, a site feasibility and cost estimating tool.

How to Apply

The program intake is open NOW! Please access and submit the linked form below. This survey is to convey your interest in participating in the Plus One ADU Program.  Following the submission of your interest survey the Plus One ADU team will conduct an initial site feasibility review of your property. Eligible homeowners will then be contacted by the program and sent an official program application. Applications must include a $200 non-refundable fee. 
Submission of the intake survey does not guarantee acceptance into the program or funding.

Submit your intake survey HERE!
 

Resources

Contact

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