Governor Hochul on May 2nd, announced that $59 million has been awarded to local governments and non-profit organizations in the first two rounds of the State’s $85 million ADU Plus One program, which increases housing supply by providing resources for low- and middle-income homeowners to build or improve an accessory dwelling unit on their property. Funding awarded to date will ultimately lead to the creation of roughly 500 ADUs across the State, and homeowners in Long Island, Westchester County, Ulster County, and the town of Amherst are set to begin construction on the first two dozen ADUs under Round One of the program.

“The lack of affordable housing opportunities impacts every community across the State,” Governor Hochul said. “The ADU Plus One program creates more affordable housing options for New Yorkers while also helping property owners. By bringing together government, municipalities, nonprofits, and homeowners, we're building a stronger and more affordable future for all New Yorkers."

The ADU Plus One program, administered by New York State Homes and Community Renewal, provides up to $2 million in grants to municipalities and nonprofit organizations that are committed to building or improving safe, high-quality accessory dwelling units. Funds are disbursed to single-family homeowners who currently live in the primary unit and who earn no more than 100 percent of the Area Median Income. Homeowners outside of New York City may receive up to $125,000 per unit in the form of a grant, while homeowners in New York City may receive up to $175,000. Municipalities and their non-profit partners work directly with homeowners to build out the ADUs, including by converting garages or other ancillary structures, constructing new detached units, and undertaking work related to legalization of basement apartments.

In the first funding round, HCR awarded $22 million to program administrators working in partnership with 17 municipalities to provide grants to individual homeowners for 200 ADUs. The $36.5 million second round of funding brings the number of municipalities participating in the program to 50 and will lead to the creation of more than 300 additional ADUs.

Ten municipalities receiving funds in the first round were also granted awards in the second round of funding due to significant interest from homeowners in these communities. A complete list of participating localities for both rounds can be found on the HCR website.

The ADU Plus One program compliments the FY 2025 Enacted Budget, which includes a transformative housing package secured by Governor Hochul to increase the state’s housing supply. The package includes: a new 485-x tax incentive to create new housing in New York City, including affordable rental housing and homeownership opportunities; an extension of the completion deadline for projects in the now-expired 421-a incentive program through 2031; authority to allow localities to adopt incentives for both mixed-income and 100 percent affordable housing outside New York City, and to support development of accessory dwelling units statewide; a new incentive to encourage affordability in commercial to residential conversions in New York City; authority to lift outdated restrictions on residential density in New York City to deliver more housing; a pilot program to enable the City to legalize existing basement and cellar apartments in certain areas of New York City; and the creation of a $500 million capital fund to build up to 15,000 units of housing on state land. In addition, the program complements Governor Hochul's five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes across New York, including 10,000 with support services for vulnerable populations.

HCR Commissioner RuthAnne Visnauskas said, “This $85 million ADU Plus One program is a model for communities across New York State as they work to address the housing crisis and increase housing supply. With the nearly $60 million awarded thus far to create ADUs from Western New York to Long Island, Governor Hochul is providing opportunities for young people, seniors, and families to live in quality housing in the communities they call home, while at the same time empowering homeowners to gain a reliable source of rental income. We are thrilled that 50 municipalities are already seeing the value of this innovative program in their communities. ADU Plus One promises to be a win-win for all.”

Ulster County Senior Planner Kai Lord-Farmer said, “We are thrilled to support ADUs as a bottom-up solution to the housing crisis here in Ulster County. With the County’s Housing Smart Communities Initiative, the City of Kingston’s new form-based code, and other ADU-friendly housing policies in the County underway, the Plus One ADU Program provides an enormous boost and proof-of-concept for ADUs as a local housing solution. We appreciate the Governor for moving this initiative forward and are excited to be a champion for ADUs at the local level. ADUs are a great win-win housing solution, expanding our supply of affordable and workforce housing while providing moderate-income households an additional source of income or opportunity to house a family member.”

Town of Amherst Supervisor Brian Kulpa said, “Governor Kathy Hochul should be commended for recognizing the need for creative programming to foster innovative housing options for communities like Amherst. The Plus One Accessory Dwelling Unit Grant has been tremendously beneficial to the Town. Not only does it provide essential resources and support for rehabilitating or establishing new ADUs, but it also reopened local discussions about housing styles. These conversations are crucial for addressing the housing crisis effectively and ensuring that Amherst expands housing options and becomes more inclusive and accessible for disabled residents and those aging-in-place.”

Community Development Long Island President & CEO Gwen O’Shea said, “Accessory dwelling units provide multiple benefits to regions like Long Island with high costs and a shortage of rental housing: they provide financial stability and flexibility for homeowners while creating affordable rental units, a win-win in every project. We applaud Governor Hochul for investing resources to create more compliant, safe and affordable ADUs. As demonstrated by the hundreds of applications we have already received, homeowners want to see more ADU’s built in their communities, and we appreciate our municipal partnerships in creating these housing opportunities.”

HCR will release a third round of funding for the program later this year.