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Nearly $60 million awarded to create new housing in 500 accessory dwelling units


Thu, May 2nd 2024 03:25 pm

Initial funding awards will assist homeowners on Long Island, in Westchester County, Ulster County, Town of Amherst 

Gov. Kathy Hochul announced $59 million has been awarded to local governments and nonprofit organizations in the first two rounds of the state’s $85 million ADU Plus One program, which increases housing supply by providing resources for low- and middle-income homeowners to build or improve an accessory dwelling unit on their property. 

Her team said funding awarded to date will ultimately lead to the creation of roughly 500 ADUs across the state, and homeowners in Long Island, Westchester County, Ulster County, and the Town of Amherst are set to begin construction on the first two-dozen ADUs under round one of the program.

“The lack of affordable housing opportunities impacts every community across the state,” Hochul said. “The ADU Plus One program creates more affordable housing options for New Yorkers while also helping property owners. By bringing together government, municipalities, nonprofits and homeowners, we're building a stronger and more affordable future for all New Yorkers."

The ADU Plus One program, administered by New York State Homes and Community Renewal (HCR), provides up to $2 million in grants to municipalities and nonprofit organizations that are committed to building or improving safe, high-quality accessory dwelling units. Funds are disbursed to single-family homeowners who currently live in the primary unit and who earn no more than 100% of the area median income. Homeowners outside of New York City may receive up to $125,000 per unit in the form of a grant, while homeowners in New York City may receive up to $175,000. Municipalities and their nonprofit partners work directly with homeowners to build out the ADUs, including by converting garages or other ancillary structures, constructing new detached units, and undertaking work related to legalization of basement apartments.

Hochul’s team said, “In the first funding round, HCR awarded $22 million to program administrators working in partnership with 17 municipalities to provide grants to individual homeowners for 200 ADUs. The $36.5 million second round of funding brings the number of municipalities participating in the program to 50 and will lead to the creation of more than 300 additional ADUs.

“Ten municipalities receiving funds in the first round were also granted awards in the second round of funding due to significant interest from homeowners in these communities.”

A complete list of participating localities for both rounds can be found on the HCR website.

HCR Commissioner RuthAnne Visnauskas said, “This $85 million ADU Plus One program is a model for communities across New York state as they work to address the housing crisis and increase housing supply. With the nearly $60 million awarded thus far to create ADUs from Western New York to Long Island, Gov. Hochul is providing opportunities for young people, seniors, and families to live in quality housing in the communities they call home, while at the same time empowering homeowners to gain a reliable source of rental income. We are thrilled that 50 municipalities are already seeing the value of this innovative program in their communities. ADU Plus One promises to be a win-win for all.”

Town of Amherst Supervisor Brian Kulpa said, “Gov. Kathy Hochul should be commended for recognizing the need for creative programming to foster innovative housing options for communities like Amherst. The Plus One accessory dwelling unit grant has been tremendously beneficial to the town. Not only does it provide essential resources and support for rehabilitating or establishing new ADUs, but it also reopened local discussions about housing styles. These conversations are crucial for addressing the housing crisis effectively and ensuring that Amherst expands housing options and becomes more inclusive and accessible for disabled residents and those aging-in-place.”

HCR will release a third round of funding for the program later this year.

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