Real Estate

NYC homeowners can now apply to build basement, backyard apartments

Image courtesy of NYC HPD

New York City homeowners can now apply to add basement, attic, and backyard cottage apartments to their existing properties. On Tuesday, the city launched an applications portal for ancillary dwelling units (ADUs) at one- and two-family homes across the five boroughs, a key part of Mayor Eric Adams’ City of Yes housing plan that passed last year. Adams also announced the “ADU For You” program to provide guidance and resources, including design help, to homeowners building ADUs.

“Too many New Yorkers are forced to choose between having a roof over their heads in an Ancillary Dwelling Unit or living in safe, regulated housing. New Yorkers no longer have to choose,” Adolfo Carrion, Jr., Deputy Mayor of Housing, Economic Development, and Workforce, said.

“Now, ADUs and the ADU for You homeowner assistance program will create more housing opportunities, keep New Yorkers safe, and make it more affordable than ever to build ADUs.”

Zoning changes approved under the City of Yes initiative make it easier for certain homeowners to create legal ADUs, which include basement apartments, attic apartments in one-family homes, and backyard cottages on the same lot as one- and two-family homes.

The city published rules for constructing the units in July, which define an ADU as a secondary dwelling unit with a kitchen and bathroom on the same lot as a single- or two-family home. Regulations state that the ADU cannot exceed 800 square feet, must be within 100 feet of the curb, cannot be located in historic districts or low-density residential areas, and the property owner must live in either the primary dwelling or the ADU.

As 6sqft previously reported, other rules require property owners to post a sign marking ADU entrances if not visible from the street, with red letters at least five inches tall on a white background reading “ADU in rear” and an arrow pointing to the entrance.

Rules regarding legalizing pre-existing basement and cellar apartments that are occupied unlawfully, a law that took effect in June, will be announced soon, according to the mayor’s office.

The ADU For You program will offer homeowners the opportunity to pick a pre-approved design created by design professionals and hire them directly. A team led by WXY, Habitat for Humanity of New York City and Westchester, and KM Associates is helping the city with these resources.

It’s unclear how much ADUs will actually make a dent in the city’s current housing crisis. According to the city, over 2,800 building owners expressed interest in constructing an ADU in a 2024 survey.

According to a report by the Regional Plan Association, a large portion of the city’s single- and two-family homes won’t qualify for building or legalizing ADUs due to current restrictions. Of the 565,400 total single- and two-family lots in the city, an estimated 460,000 will remain barred from adding an ADU, leaving only about 68,000 lots, or 12 percent of properties, where this housing type could be allowed.

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