Grant Programs for ADU’s
New York City
Plus One Accessory Dwelling Unit (ADU) Program
Applications closed February 2024- Submit interest for next round
Eligibility
May earn up to 165% AMI or $186,450 for a two-person household. Preference will be given to homeowners who are at or below 100% AMI or $113,000 for a two-person household.
Must be owner-occupant
Must be current on any existing mortgages and not have outstanding municipal arrears or be in an active payment plan.
Amount
Maximum HPD loan amount of $220,000 per borrower.
Maximum Grant amount of $175,000 per homeowner.
Terms
Interest Rate: 5%. Rate may be reduced.
Payment terms: Amortizing or deferred/forgivable
Loan Term: 180 months (15 years.) Term may be extended to a term not more than 360 months. Loans are due upon sale or cash out refinancing of the home prior to maturity.
Cash flow: Monthly loan payments will be set so that the household has at least $200 monthly cash flow available after household debt obligations are subtracted from household income. Homeowners should work with program administrator to assess household finances and their ability to repay debt incurred through the Plus One ADU.
HPD calculates monthly gross income by adding all sources of income (including rental income).
If the initial loan terms, as provided above, are not affordable, HPD may adjust the loan terms in the following sequential order to achieve affordability: 3 Plus One ADU Program, Term Sheet
The initial interest rate set may be lowered at sequential quarter basis points to as low as 0%
The initial loan term may be extended up to 360 months.
Borrowers have the option of receiving either:
Repayable loans (interest rate and repayment terms based on underwriting) with no regulatory agreement, or
Deferred-forgivable loans, with the requirement of rent restriction on the new ADU unit at 100% AMI with annual increases capped at 2%
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