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New York State Program Incentivizes Building of Additional Units

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Dyan Gershman leads Gershman Law, PLLC, in New York City and provides knowledgeable services in areas such as technology and intellectual property licensing. Active with a number of community organizations, Dyan Gershman has volunteered extensively with Habitat for Humanity, an organization committed to helping build “a world where everyone has a safe and decent place to live.”

New York State is experiencing a housing crisis. One innovative state program, the Plus ONE ADU Program, seeks to address the crisis by providing grants of as much as $125,000 to homeowners statewide who build an accessory dwelling unit (ADU) on their property. With housing becoming increasingly unaffordable and competition for available units intensifying, this program can help ease the demand pressure, while using a property infill approach that does not emphasize new developments.

The first funding round involved the allocation of nine grants of amounts as high as $2.6 million distributed to local governments such as the Town of Amherst and Ulster County, and nonprofits like Habitat for Humanity of NYC and Westchester. Homeowners who receive funds have several options, from constructing a tiny home in their backyard to re-envisioning a garage as an apartment. Applicants are required to meet a certain threshold of need relative to their area’s median income. By 2028, it is anticipated that around $85 million will have been disbursed through this program.

The program capitalizes on an emerging trend, as cities in New York and beyond have already revised zoning ordinances so that homeowners can build additional units on their property.