The City of New York is now offering to pay homeowners up to $395,000 to build a tiny home with the aim of easing the housing shortage.
In a press release published this week, the city's Housing Preservation and Development Commissioner Adolfo Carrion Jr. announced the launch of a new pilot program to encourage homeowners to construct accessory dwelling units or "granny flats" to help solve New York's housing shortage.
The new project, named "Plus One ADU," will provide up to $395,000 people to 15 lucky homeowners to build a tiny home in their backyard. Homeowners could also build an extra unit in their garage, basement, or attic.
"By paving the way for easier, more affordable accessory dwelling unit conversion, we are delivering a tangible win for families. Whether it's for seniors who need space for a caregiver, a multigenerational household who want separate living spaces, or young parents with a little one on the way, an ADU can offer the flexibility families need to make New York City work for them," New York Mayor Eric Adams said.
"As a critical piece of our 'City of Yes' proposal to build a little more housing in every neighborhood, we are thrilled to welcome the launch of this pilot and see how ADUs can add the housing we need for families across the five boroughs," he added.
Who Is Eligible for the Funding?
To be eligible, New York homeowners must be occupants of the property, must be current on their mortgage, and must not have outstanding municipal arrears. If they have municipal arrears, they should be in an active payment plan.
The program also has an income threshold. The income limit for a two-person household is a maximum of $186,450 annually, while a family of four can earn up to $232,980. Priority is given to homeowners with lower incomes. Rents for the new apartments will be capped at around $2,600, per the New York Times.
The new apartment will need to meet certain requirements. The homes must pass a housing quality inspection and require no major repairs. Eligible homes must also be free of housing or building code violations even before receiving financing from the program.
Homeowners can apply through the HPD's website. Applications will be accepted until Feb. 13, 2024.
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