PLUS ONE ADU
ACCESSORY DWELLING UNIT
ABOUT PLUS ONE ADU
The “Plus One” ADU program typically refers to an initiative aimed at encouraging the construction or conversion of Accessory Dwelling Units (ADUs). ADUs are secondary housing units located on residential properties. They can be either attached to the main house, such as a converted garage or basement, or detached, like a standalone cottage.
The “Plus One” aspect of the program often signifies the goal of adding one additional housing unit to a property, hence the name. These programs are often implemented by local governments or housing authorities as part of broader efforts to address housing shortages, promote affordable housing options, and utilize existing residential space more efficiently. They can involve incentives, regulatory changes, or financial assistance to encourage homeowners to create ADUs on their properties.
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PLUS ONE ADU
Disclosure: SLK Buildings is a private consulting and construction-management firm and is not affiliated with NYC DOB, HPD, HCR, or any government agency.
We provide zoning analysis, code compliance analysis (code interpretation), violation resolution, design with our partner Registered Architect, DOB filings, permit expediting, and construction coordination.
Why Choose SLK Buildings?
- Proven Track Record
- Diverse Clientele
- Integrated Services
- Client-Centric Approach
- Registered Representative
Proven Track Record: Over two decades of successful dealing with NYC Department of Buildings Rules and Regulations.
Diverse Clientele: Trusted by a broad spectrum of clients, from individual property owners, architects, engineers, attorneys, hospitality business owners, project management firms to large scale developers.
Integrated Services: A one-stop solution encompassing consultation, representation, documentation and compliance support. We manages the entire process, from determining applicability to Accessory Dwelling Unit qualification, filing your ADU application, coordinating with our Registered Architect or Professional Engineer partner, to the completion.
Client-Centric Approach: Tailored strategies that prioritized our clients’ unique needs and objectives.
Registered Representative: We are registered Filing Representative with Department of Buildings and Registered Representative with OATH (Office of Administrative Trials and Hearings) and familiar with the Rules of Practice for the OATH Hearings Divisions.
NYS ADU BUDGET
The 2022-2023 NYS Capital Budget has allocated $85,000,000 for the creation and enhancement of accessory dwelling units (ADUs) throughout New York State as part of a five-year Housing Plan. The Plus One ADU Program represents an initiative aimed at fostering the development and enhancement of ADUs across the state. Through this program, grants are provided to local government entities and nonprofit organizations committed to developing tailored programs for the creation of safe and high-quality ADUs. By collaborating with local government units and community development partners, Plus One ADU offers a comprehensive program designed to assist low- and middle-income single-family homeowners who seek to construct new ADUs on their properties or upgrade existing units to meet local and state building codes.
ADUs, depending on property specifications and local regulations, may include small detached units, basement apartments, garage conversions, or other permitted configurations.
NYC AMI
The Area Median Income (AMI) serves as a crucial metric in determining housing affordability in New York City (NYC). Calculated annually by the U.S. Department of Housing and Urban Development (HUD), the AMI represents the midpoint of all incomes in a particular area, accounting for household sizes and geographic location.
In NYC, the AMI is a fundamental component in various housing programs, policies, and initiatives aimed at addressing affordability challenges in one of the most expensive cities in the United States. Understanding the AMI allows policymakers, housing advocates, and stakeholders to gauge the income levels of residents and design targeted strategies to provide housing options that are accessible to different income brackets.
The NYC AMI varies depending on the household size and composition, with adjustments made for families of different sizes. For example, the AMI for a family of four will be higher than that for a single individual or a couple. This flexibility reflects the diverse demographics and living arrangements within the city.
Moreover, the NYC AMI is used as a basis for determining eligibility criteria for affordable housing programs and initiatives. For instance, affordable housing units may be designated for individuals or families earning up to a certain percentage of the AMI. Common thresholds include 50%, 60%, 80%, and 100% of the AMI, with some programs targeting even higher income levels.
The NYC Department of Housing Preservation and Development (HPD) plays a central role in administering affordable housing programs and ensuring compliance with AMI guidelines. HPD regularly updates and publishes the AMI figures to inform stakeholders and ensure transparency in housing affordability efforts.
Overall, the NYC AMI serves as a critical tool in the ongoing efforts to address housing affordability challenges and promote equitable access to housing for all residents of the city. By understanding and utilizing the AMI, policymakers and advocates can develop targeted strategies to create a more inclusive and sustainable housing landscape in NYC.
Each year, the U.S. Department of Housing and Urban Development (HUD) determines the Area Median Income (AMI) for cities nationwide. In 2024, the AMI for the New York City region stands at $139,800 for a three-person family, representing 100% of the AMI.
2024 New York City Area AMI
Income Bands and Percent of AMI
NEW YORK STATE HOMES AND COMMUNITY RENEWAL PLUS-ONE ADU PROGRAM GUIDELINES
Program Allocation
$85,000,000 (5-year term).
Program Goal
To empower homeowners with low to moderate incomes to construct accessory dwelling units (ADUs) or enhance existing ones to adhere to local and state building code standards.
Program Administrator
Non-profit housing developers collaborate with municipalities. Either the non-profit organization or the municipality can take the lead role in managing the program. Awardees are chosen through a competitive Request for Proposals process.
Allocation Per Municipality
$2,000,000 per funding round.
Per Unit Allocation
Homeowners may receive a grant up to $125,000 outside of NYC; Homeowners in NYC may receive up to $175,000.
Maximum Program Administration Costs
10 % of total grant award.
ELIGIBILITY REQUIREMENTS
Eligible Homeowners
Low- and moderate-income homeowners (“Participants”) who must be at or below 100% of the Area Median Income (AMI).
Primary Residence Requirement
The main home must be the Participant’s primary residence. Second homes are ineligible for assistance. Second homes are defined by the IRS publication 936.
Property Type
- Single-family homes (1–4-unit homes).
- Attached or detached garages or basement apartments permitted for conversions, or other types of permitted units allowable by the municipality.
- New construction, either attached or detached from the main house is permitted, if allowable by the municipality.
Property Ownership Requirements
Ownership is defined as holding a fee simple title as evidenced by a warranty deed, bargain for sale deed, a quit claim deed to the Property or having an approved lease hold interest and improvement.
- Homes owned by a Trust: allowed if the participant is one of the listed beneficiaries and an occupant.
- Homes owned by an LLC: allowed if the participant is one of the shareholders and an occupant; permission from other shareholders
required. - Homeowners with Living Trusts/Irrevocable Trusts: allowed if the participant is the occupant of the home; if not an occupant and the program is to benefit another beneficiary, that beneficiary’s name must be on the deed and the beneficiary/occupant must meet all eligibility criteria for the program.
ADU Definition
In general, an ADU, an accessory dwelling unit, or “accessory use or accessory structure” is defined as a secondary residence on the same lot as a primary dwelling with features that allow a complete habitable space that includes provisions for sleeping, cooking, and sanitation. Local codes define in which zones these units can be built or improved on. The definition may vary according to local codes. Grant funds may be used for:
- Small, stand-alone (detached) units on single-family lots, basement apartments, garage conversions, or other permitted units.
- Secondary units that are considered illegal or unsafe that are within the primary home, but undefined as an ADU in local codes.
- To build a new unit, whether it is attached or detached to a single family home, irrespective of how it is defined as an ADU, if it is permissible by local code.
Use of ADU
To house a family member or rent to a community member long-term. There are no mandatory income requirements for the rental unit although the local program administrator may choose to implement such requirements. The ADU may not be used as a short-term rental.
GRANT MANAGEMENT
Award Disbursement Structure
Non-payable loan with a declining balance lien that is fully forgiven if the participant remains on the property and does not refinance their mortgage for a period of 10 years.
Grant Securitization
Grant Agreement between local program administrator and homeowner, in addition to a Recorded Property Restrictive Covenant in the name of NYS HTFC.
Construction and Management
- Participants may select their preferred building contractor. However, all professional service contractors must be licensed with New York State.
- Sweat equity is eligible, for which payment will be made for materials and not labor.
- Sub-Recipient may recommend professional service providers at the request of participants.
- Minority/Women Owned Business Utilization and Service-Disabled Veteran Owned Business utilization goals must be met. Targets are based on county.
Environmental Requirements
Prior to the formal commitment or expenditure funds, the environmental effects of each program activity must be assessed in accordance with the State Environmental Quality Review Act (“SEQRA”) at 6 NYCRR Part 617.
Each home renovation project must comply with the following laws and regulations: The State Environmental Quality Review Act (SEQR) at 6 NYCRR 617; Section 14.09 of the Parks, Recreation, and Historic Preservation Law (Historic & Cultural Resources); Floodplain Management Criteria for State Projects at 6 NYCRR 502; NYS Agricultural and Markets Law Section 305(4) (Agricultural Districts); Coastal Zones at 19 NYCRR Part 600; Local Zoning Code/Special Use Permits; Lead Based Paint – EPA Renovation, Repair and Paint Rule; Asbestos Containing Materials at 12 NYCRR Part 56.
Eligible Use of Awarded Funds
- Pre-development costs associated with establishing an ADU, such as permitting fees, architectural services, environmental studies, legal fees etc.
- Construction Costs, such as materials to make converted units legal and safe; or to build new units.
- Purchases of modular units or tiny homes independently sited on the primary residence owner’s land.
Ineligible Costs
- Demolition and removal of a home. Reimbursement of costs for construction work previously incurred or costs incurred prior to receiving environmental clearance from HCR and execution of a grant agreement with program administrator.
Disbursement of Funds
Cost-incurred and/or reimbursement basis to the program administrator. Disbursement schedules are based on achieving program milestones:
- Up to fifty percent (50%) of the Project Delivery costs can be drawn down in the first year of the Agreement.
- Pre-development costs can be drawn down after the issuance of HCR Programmatic Environmental Clearance.
- Construction costs can be drawn down after obtaining a duly issued building permit and once the program administrator has completed a site-specific Environmental Site Certification
- The last ten percent (10%) of construction costs per unit will be withheld until a Certificate of Occupancy or Certificate of Completion (COO/COC) is provided.
Pairing of Funds
Development budgets may include other government grant or loan sources, or other sources of funding.
Regulatory Period
10 years.
Regulatory Requirements
- Annual compliance certifications including confirmation that the ADU is being used as permanent housing rather than as a short-term rental, and site visits every two years to ensure appropriate property maintenance and quality housing standards, among other standards.
- If the municipality has its own compliance monitoring system, the program administrator may opt to use that certification as proof of compliance during the regulatory period.
Property Occupancy Requirement
The main home or newly created ADU must be owned and occupied by the by the eligible program participant. The ADU must be occupied by a long term renter or a related party such as a family member.
Proof of Income
- In determining income, the Program uses federal income tax returns (e.g., IRS Forms, 1040, 1040A or 1040EZ). Where tax returns are not available other forms of income documentation such as paystubs, social security statements, etc. may be evaluated.
- Proxy documents may be accepted, which include letters of proof from membership in any public assistance program such as SNAP, WIC, Medicaid, HEAP, RPTL 467 Tax Exemptions for Persons aged 65+; or RPTL 459 – Property Tax exemptions for persons with limited incomes and disabilities etc.
Hardships
Homeowners who do not meet any of the above terms may request a hardship waiver based on demonstrated need. Applications will be evaluated on a case-by-case basis and subject to approval by HCR staff.
FOR HOMEOWNERS
The Plus One ADU Program aims to enhance and establish Accessory Dwelling Units (ADUs) throughout the state. It seeks to assist low- and middle-income single-family homeowners in constructing new ADUs on their properties or upgrading existing ones to meet local and state regulations. Certain municipalities have received awards to initiate this program, with more expected to join in the coming years, as anticipated by HCR.
To determine eligibility, homeowners are required to apply with the local program administrators (LPAs) overseeing the initiative. Below is a list of organizations and municipalities involved in this project.