Mamdani Launches Program for Homeowners to Plan and Finance ADUs

The Mamdani administration is making it easier for property owners to boost their income by creating ancillary dwelling units (ADUs) in their homes and backyards.

Mayor Zohran Mamdani announced Wednesday morning that his administration would create a suite of tools designed to fast-track city approval of rental spaces in yards, attics and basements. The new tools include an ADU guidebook, an online portal for applications and a library of pre-approved plans for living quarters that can be rented to paying tenants.

Coined the Plus One ADU program, it will be managed by the New York City Department of Housing Preservation and Development and the New York City Department of Buildings, funded through New York State Homes and Community Renewal.

“One of the solutions to the housing crisis can be found in our backyards, our attics, or our basements — in an ancillary dwelling unit,” Mamdani said in a statement. “By making it easier for New Yorkers to turn their homes into an extra place for a loved one or a little more income, we’re allowing our city to grow while keeping the character of the neighborhoods we love.” 

Homeowners can also apply for $395,000 in financial and technical assistance, according to the administration.

“In the midst of a dire housing crisis, ADUs are an important tool for homeowners to add space, bring in extra income, and stay in their communities — but creating an ADU can feel out of reach for too many New Yorkers,” Leila Bozorg, deputy mayor for housing and planning, said in a statement. “These new tools will help ensure that any New Yorker who wants to add an ADU is able to.”

ADUs, made officially legal by the sweeping reforms of former Mayor Eric Adams’ City of Yes initiative, can be made from converted attics, basements or even garages, as long as they comply with zoning occupancy requirements. 

The city has long been dabbling with ADUs — which are considered dangerous in certain conditions, such as when basements are subject to flooding — with a pilot program launched in 2023. that closely resembles the one announced Wednesday. 

Former Mayor Bill de Blasio launched a similar pilot in 2019. That ADU program focused on financing basement conversions in East New York, Brooklyn, because of the difficulty and expense of making those spaces suitable for living.

Homeowners could also only get about $120,000 to finance basement conversions.

Mark Hallum can be reached at mhallum@commercialobserver.com.