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Housing in New York City is always at a premium, but data released earlier this year showed that the situation is at critical levels. The New York City Housing and Vacancy Survey put vacancy rates at 1.4%, a historic low. "The data is clear: the demand to live in our city is far outpacing our ability to build housing. New Yorkers need our help, and they need it now," said New York City Mayor Eric Adams about the survey.
New York is a renter-driven city. 69% of households rent their homes, and approximately half those homes have some sort of rent stabilization. But Adams sees the city’s homeowners as part of the solution to the problem. The city has announced a new initiative to benefit homeowners and add to the housing pool.
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Mayor Adams has decided that accessory dwelling units (ADUs) are one potential solution to the dearth of spaces. The Adams Administration has created a $4 million grant funding to support an ADU pilot program. ADUs include not only separate independent cottages on properties but also basement apartments with separate entrances. Adams said that adopting ADUs will not change the character of neighborhoods and that “you won’t see a 14-story building in someone’s backyard.”
In addition to the grant, the city is also making it easier for homeowners to build ADUs by hosting an online portal to help them find out how to put an ADU on their property or create one within an existing building. The portal includes zoning information, homeowners’ support, and preapproved plans. Through its ‘City of Yes for Housing Opportunity’ initiative, the city aims to create 108,850 new homes over 15 years through various avenues, including legalizing ADUs.
Adams stressed that adding ADUs will benefit families and potentially provide an income stream. "For our seniors fighting to stay in the neighborhoods they call home or young people struggling to find a living space, accessory dwelling units can be a lifeline to stable, affordable housing," said Mayor Adams. “Together, we can build our way toward a better future, but that must include saying ‘yes’ to ‘City of Yes for Housing Opportunity’ and legalizing accessory dwelling units."
One income that Adams doesn’t want for these ADUs is short-term housing. He answered questions about putting ADUs on Airbnb (NASDAQ:ABNB) and was clear that the city’s restrictive rules around short-term rentals remain in place. "We have very clear rules on Airbnbs and how they should be used, and we are going to continue to be vigilant and make sure that no one takes this important initiative and abuses it," said Adams.
Part of Adams’ proposal for more housing also includes zoning reform. He wants to lift the floor-to-area ratio (FAR) cap on new construction, increasing the density of residential buildings and adding to the housing supply. Some of his zoning initiatives, including plans to add more commercial businesses to residents, have struck a nerve with some New Yorkers.
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If You Permit Them, Will They Build Them?
New York City’s approval of ADUs is part of a growing trend on the East Coast. The West Coast has been the leader in building ADUs. As of 2022, nearly one in five new homes in California was an ADU. In New York State, the 2022-2023 state budget made $85 million available to upgrade and build ADUs across the state as part of a five-year plan. The Plus One ADU Program grants community-specific programs to support homeowners wanting to add an ADU.
Homeowners in Rhode Island received permission to put ADUs on their properties courtesy of a new law that permits them but bans their use as short-term rentals. Earlier this week, Massachusetts Gov. Maura Healy signed a bill to make ADUs legal in all single-family zoning districts. The new law authorizes a $60 million program to build housing, and some of that funding could be directed to ADUs.
With these programs in place, the next step is to see if homeowners demonstrate interest in building ADUs. California’s statewide legislation for ADUs started in 2016, and widespread adoption took time. It may take several years for homeowners to learn about the programs, apply for grants, and decide if it is suitable for them. Still, the growing approval of ADUs shows that many governments believe this is part of the solution to the nationwide housing crisis.
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This article Will New York City Join The ADU Craze? Mayor Adams Says Now Is The Time originally appeared on Benzinga.com
