NYC Announces Grant To Fund Homeowners Building Accessory Dwelling Units

The lack of affordable housing in major cities across America has reached a crisis stage, and New York City is a prime example of how bad it is. 

The shortage is so severe and the rents so high that some people have even taken to YouTube to show how terrible their apartments are. This is despite rents starting in the $2,000 per month range.

Although the New York City government can't fix the problem on its own, it is aware of the issue and trying creative methods to help solve it. New York recently announced a program in which it will pay 15 property owners up to $395,000 to build accessory dwelling units on their properties and rent them out. The program, known as Plus One ADU, is just part of a city and state effort to alleviate New York's housing crisis.

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How the Plus One ADU Program Works

Interested homeowners who would like to participate in the Plus One ADU program can apply online. To be approved, their homes must meet certain eligibility requirements, including:

• Detached single-family residences
• Be in an area that allows two-unit construction 
• Must pass inspection and be free of building code or safety violations
• Must be current on mortgage and property taxes

The program also has some qualification requirements that property owners must meet. First, the property being proposed must be owner-occupied. Second, there is an income limit. The income limit for a two-person household is $186,450, and the program will extend preference to households earning less than $113,000.

Last, the rent for the new unit will be capped at $2,600 per month. The fact that $2,600 per month constitutes affordable rent in New York City speaks to the severity of the crisis. To afford that apartment, the renter would still need to make nearly $7,000 per month. The application fee is $200, and interested property owners must submit their applications by Feb. 13.

What Kind Of Units Can Be Built?

Property owners will have the discretion to build the type of unit that makes the most logistical sense. In some cases, that will mean finishing out a basement or detached garage. In other cases, that may mean having an ADU built on the property. Whatever form the final construction takes, it must comply with all applicable housing safety requirements.

A Drop In The Bucket And A Ray Of Light

Adding 15 ADUs to the housing stock will not go far toward solving New York City's affordability crisis. It's also important that the city leadership is beginning to take affirmative steps like this. The housing crisis didn't get here overnight and it won't be solved overnight. ADUs, which are becoming increasingly popular and cost-efficient to build, will could be a big part of the long-term solution.

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