Plus One ADU Program: How to Get Up to $395,000 for Your ADU

building an ADU in New York City is not cheap. depending on the type, you could be looking at anywhere from $85,000 to $650,000. for most homeowners, that is not the kind of money sitting in a savings account.

enter the Plus One ADU program -- a joint initiative from NYC's Department of Housing Preservation and Development (HPD), New York State Homes and Community Renewal (HCR), and Restored Homes HDFC that offers up to $395,000 in combined grants and low-interest loans to help you build an ADU on your property.

this is real money, for real homeowners, right now. but the deadline is coming up fast and spots are limited. here is everything you need to know.

How the Money Breaks Down

the Plus One program combines two funding sources into one package:

Funding Source	Type	Maximum Amount
NYS Homes and Community Renewal (HCR)	Construction Grant	$175,000
City of New York (HPD)	Low-Interest Loan	$220,000
Total	Combined	$395,000

that is not a typo. up to $175,000 as a grant -- money you do not pay back -- plus up to $220,000 as a low-interest loan. for many ADU projects, this covers the entire cost of construction.

Loan Structure Options

the loan portion has two possible structures depending on your situation:

• Amortizing loan: standard repayment with interest rate based on underwriting. no regulatory agreement required.
• Deferred-forgivable loan: the loan is forgiven over time, but you must rent the ADU at an affordable rate (100% AMI) with annual rent increases capped at 2%.

which option makes sense depends on your financial situation and your plans for the ADU. if you want maximum flexibility on rent, the amortizing loan is the way to go. if you want a loan that eventually disappears, the deferred-forgivable option is compelling.

Who Qualifies

the Plus One program is targeted at low- and middle-income homeowners. here are the key requirements:

Income Limits

• household income must be at or below 165% of Area Median Income (AMI)
• preference is given to applicants at 120% AMI or below
• for a family of four in NYC, 165% AMI is roughly $222,000 per year (check the current AMI chart for exact figures based on household size)

Property Requirements

• you must be the owner-occupant of the property
• property must be detached or semi-detached, or contain 1-2 existing units
• your property must allow ADU construction under current zoning
• no outstanding municipal arrears (or you must have an active payment plan)
• must be current on existing mortgage payments
• property must be free of code violations (unless they are ADU-related violations you are fixing)
• cannot be in a Special Coastal Risk District or applicable flood zone

The 10-Year Rental Commitment

this is the part people miss in the headlines. if you accept Plus One funding, you are entering a regulatory agreement for a minimum of 10 years. during that period:

• the ADU must serve as permanent housing -- no Airbnb, no short-term rentals
• you must submit annual certifications verifying compliance
• HPD conducts site visits every two years
• if you took the deferred-forgivable loan option, rent must stay at or below 100% AMI with increases capped at 2% per year

for most homeowners, this is a fair trade. you are getting nearly $400K in funding -- keeping a tenant in the unit for 10 years at a reasonable rent is not exactly a hardship, especially in NYC's rental market.

The Deadline: June 12, 2026

the current application window is open now through June 12, 2026. this is the first time the city has accepted new applications in two years -- the program was paused to work through the previous backlog.

how big is the demand? the last time applications opened, over 1,300 applications flooded in within the first two weeks. this program will not last forever, and it will not be available to everyone who applies.

do not wait until June to start. get your eligibility confirmed, gather your documents, and submit as early as possible.

How to Apply: Step by Step

1. check your ADU eligibility. before anything else, confirm your property qualifies for an ADU. use our free eligibility checker here.
2. submit the intake survey. go to the Plus One ADU program page on HPD's website and fill out the intake survey to express interest. this is not the full application -- it is a screening step.
3. site feasibility review. Restored Homes HDFC, the program administrator, will review your property for feasibility. they will coordinate with design professionals and provide technical guidance.
4. receive and complete the official application. if your property passes the feasibility review, you will receive an official application. the application fee is $200 (non-refundable).
5. design and permitting. once approved, you will work with architects and engineers to design your ADU and submit for DOB permits.
6. construction. with permits in hand and funding secured, construction begins.

Who Administers the Program

Restored Homes Housing Development Fund Corporation (HDFC) is the program administrator. they handle application support, coordinate with design professionals, and provide technical guidance throughout the development and construction process.

What the Funding Covers

Plus One funding can be applied to:

• architectural and engineering fees
• permit and filing costs
• construction costs (foundation, framing, plumbing, electrical, HVAC)
• utility connections
• required safety systems (sprinklers, fire separation, egress)
• site work (excavation, grading, landscaping restoration)

basically, it covers the full cost of getting your ADU built and code-compliant.

Tips to Strengthen Your Application

• apply early. this is a competitive program with limited funding. the earlier you apply, the better your chances.
• get your finances in order. make sure you are current on your mortgage, have no municipal arrears, and can document your income clearly.
• resolve any code violations. outstanding violations on your property can disqualify you.
• consider pre-approved plans. using an HPD pre-approved ADU design shows you are serious and can speed up the process.
• have a clear plan for the unit. know whether you want to rent to family, a long-term tenant, or use it for aging-in-place.

Contact Information

for questions about the Plus One ADU program:

• email: PlusOneADU@hpd.nyc.gov
• office: Homeownership Opportunities and Preservation, 100 Gold Street, Room 9S-11, New York, NY 10038

Do Not Leave $395,000 on the Table

the Plus One program is the single best financial resource available to NYC homeowners who want to build an ADU. but it requires planning, documentation, and -- most importantly -- acting before the deadline.

step one: check if your property is eligible for an ADU. if it is, you are already ahead of most people. step two: get your Plus One application in before June 12, 2026.

the city is literally offering to help you build wealth on your own property. take them up on it.