ADU Financing in New York City — Grants, Loans, and Construction Support

SLK Buildings offers one-stop support for ADU financing—from early design through HPD pre-approval and lender coordination. We help you identify funding sources, prepare lender-ready plans, and connect you with architects and contractors who meet NYC compliance standards.

Funding Options Available for NYC Homeowners

Depending on your property type and ownership status, there are multiple paths to finance your ADU or garage conversion. We summarize the main categories below:

1. HPD & NYS ADU Grant Programs

The NYC Department of Housing Preservation and Development (HPD) and NYS Homes and Community Renewal (HCR) offer limited-time funding to help homeowners add ADUs legally and safely. Eligible applicants may receive up to $395,000 in combined support through the Plus One ADU Program and HPD’s low-interest loan options.

• Funds can cover design, permits, and construction.
• Grants may be forgivable if rent limits or occupancy terms are met.
• Applications are accepted in cycles—SLK Buildings helps track open rounds and prepare documentation.

2. Home Equity Line of Credit (HELOC)

For homeowners with built-up equity, a HELOC provides flexible funding that functions like a revolving credit line. It can cover partial or full ADU construction costs. Typical lenders include Citizens Bank, TD Bank, and M&T Bank, which serve NYC homeowners with equity of 20% or more.

3. Construction-to-Permanent Loans

This financing type allows you to fund your ADU build through a short-term construction phase that converts to a permanent mortgage after completion. It’s a common choice for two-story garage ADUs or full backyard additions. We work with local credit unions and private lenders to prepare compliant plans and cost estimates that satisfy underwriting requirements.

4. Cash-Out Refinance

Homeowners who already have equity may opt to refinance an existing mortgage for a higher amount, using the difference to fund ADU construction. Interest rates may be competitive, especially if the new ADU will generate rental income.

5. Private Construction Loans

For homeowners who don’t qualify for city grants or prefer flexible terms, private lenders can bridge the gap. SLK Buildings maintains relationships with regional lenders that provide short-term ADU construction loans based on post-construction value—not just current home equity.

SLK’s One-Stop ADU Process

• Design & Pre-Approval: Select from SLK’s ADU design options—garage conversions, detached studios, or two-story additions—then coordinate HPD submission with our licensed architect partner.
• Financing Coordination: We guide you through lender document preparation, appraisals, and equity calculations.
• Permitting & Filing: DOB filing plans, expediting, and construction permit management handled by SLK Buildings.
• Construction & Completion: Our team or your chosen contractor completes the build under code-compliant supervision.

Financing Assistance Form

To learn what programs you may qualify for, use our intake form below. We’ll review your eligibility and contact you with potential financing options.

Check My ADU Financing Options

Disclaimer

Disclaimer: SLK Buildings is not a bank, lender, or financial institution.
We do not originate loans or guarantee funding. The information on this page is based on publicly available resources from HPD, HCR, and private lenders as of the current date. Program terms may change or close without notice.
SLK’s role is to help homeowners prepare applications, coordinate with licensed lenders or agencies,
and integrate financing into the ADU design and permitting process.

Frequently Asked Questions