Here’s how NYC homeowners can apply for $395K to add a living space to their property

STATEN ISLAND, N.Y. — Mayor Eric Adams administration wants to offer homeowners in the five boroughs up to almost $400,000 to build extra dwelling units on their property, his administration announced last week.

Now open to applicants, the pilot program provides up to $395,000 in loan funding through the city Department of Housing Preservation and Development (HPD) and $2.6 million in grant funding from New York State Homes and Community Renewal (HCR) to qualified homeowners to build accessory dwelling units (ADU) on their properties.

Homeowners interested in the “Plus One ADU” pilot program will have until February 13, 2024 to fill out an online survey that will help city officials determine if they’re eligible for the program. Only 15 single-family owners will be selected in the initial pilot program, according to the city.

Eligible homeowners may earn up to 165% of the city’s area median income or $186,450 for a two-person household with preference given to homeowners who are at or below 100% of the city’s area median income or $113,000.

People hoping to participate in the program need to use their home as a primary residence at least nine months out of the year while being current on any existing mortgages and not have outstanding municipal arrears or be in an active payment plan to pay those arrears.

Eligible properties will be one-unit, single-family detached residential homes free of housing or building code violations not related to an ADU. The properties must allow for two-family construction under the existing building and zoning code, pass a housing quality inspection and need no major repairs other than those that are essential to the ADU construction.

ADUs that can be supported using funds from the program are attached or detached existing or new structures and basement or attic unit conversions.

For basement conversions, the applicable ADU space must meet ceiling height requirements prior to conversion and must be located outside of the 2050…

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