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We’ve all witnessed the mad rush to secure an apartment in NYC. We’ve seen the lines around the block and heard the horror stories of desperate New Yorkers getting beat out by someone else’s hefty down payment. It’s a housing crisis—there aren’t a lot of apartments and prices are high.
A new plan rolling out from the Eric Adams Administration, though, aims to provide more housing by allowing homeowners of one- or two-family homes to build accessory dwelling units (ADUs) on their properties.
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These ADUs can be backyard cottages and basement apartments measuring up to 800 square feet with separate entrances—and would still fit within building and zoning codes.
City of Yes for Housing Opportunity would permit one- or two-family homes in New York City to add an accessory dwelling unit of up to 800 square feet, while adhering to building code and other city and state regulations.
According to the administration, ADUs have been helpful for families in need of a living space for loved ones or caretakers, have brought in extra income and provided space for families to grow without changing the neighborhood they’re in.
The pilot program, fueled by $4 million in grant funding, will provide up to $395,000 to qualified homeowners through the Housing Preservation & Development agency and it’ll provide funds from New York State Homes and Community Renewal to build or convert an ADU on their properties. Up to 35 homeowners will be able to create an ADU under current zoning and building codes.
When the pilot was first launched in 2023, nearly 80% of applicants said they were interested in improving their family’s finances or housing a family member with an ADU, officials say.
Those interested in creating an ADU on their properties will have tools at their disposal once NYC creates its “one-stop shop” portal that’ll include a library of pre-approved designs, much like what is done in Los Angeles and Eugene, Oregon.
Again, this new plan is part of the Adams Administration’s “City of Yes for Housing Opportunity,” which is currently under public review. According to officials, it’s the “most pro-housing zoning proposal in New York City’s history” because as many as 108,850 new homes could be built over the next 15 years.
“For our seniors fighting to stay in the neighborhoods they call home or young people struggling to find a living space, accessory dwelling units can be a lifeline to stable, affordable housing,” Mayor Adams said in a statement. “For too long, our policies have lived in the past and ignored the present: We are facing a generational housing crisis. The only solution is to build more and make it easier, not harder, for homeowners to join government in addressing this crisis head on. Together, we can build our way towards a better future, but that must include saying ‘yes’ to ‘City of Yes for Housing Opportunity’ and legalizing accessory dwelling units.”
In addition to the City of Yes plan, the city’s planning department is pushing plans that if approved could bring more than 50,000 units to NYC over the next 15 years in the Metro North station area in the Bronx, Central Brooklyn, Midtown South in Manhattan, Long Island City and Jamaica, Queens.
It may not happen overnight, but NYC’s future rental market is looking more promising.