New York

New York State enacted sweeping ADU legislation in 2024, requiring most municipalities to allow accessory dwelling units on residential lots. The law is part of a broader housing package aimed at addressing the state's severe supply shortage. ADU Pass helps New York homeowners navigate the new permitting landscape across the state's diverse local jurisdictions.

2,317 ZIP codes
63 Counties
1,503 Cities

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State ADU details

State financing programs

New York operates the Plus One ADU Program, a state-funded grant initiative administered by NYS Homes and Community Renewal (HCR) that finances new ADU construction and the legalization of existing unpermitted units for low- and moderate-income homeowners. The program was capitalized at $85 million over five years by the FY2022-2023 NYS Capital Budget; approximately $59 million had been awarded to local government and non-profit subrecipients across the first two rounds. A separate NYC-administered Plus One ADU pilot (run by HPD) layers additional grant + loan dollars on top within the five boroughs.

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State insurance regimes

New York's residual property-insurance market is the New York Property Insurance Underwriting Association (NYPIUA), the state's FAIR Plan equivalent, established 1968 under Insurance Law §§5401-5413. NYPIUA writes basic fire-and-extended-coverage policies for properties that cannot obtain coverage in the voluntary market. The NYS Department of Financial Services (DFS) regulates homeowners and dwelling-fire forms and rates. New York does not operate a wind pool; coastal Long Island and NYC properties are served by the admitted market plus surplus lines, with NYPIUA available as the residual market for coastal exposures the admitted market declines.

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State housing programs

Beyond the Plus One ADU funding stream, New York's statewide ADU policy footprint is concentrated in HCR's Plus One technical-assistance and pre-development resources for subrecipient localities. The state does not currently operate a statewide pre-approved ADU plan catalog, statewide impact-fee waiver, or statewide streamlined-review timeline floor — those tools sit at the municipal level (notably the City of Yes for Housing Opportunity package adopted by NYC in late 2024). New York's 'City of Yes' is a NYC zoning text amendment, not a state program, and is therefore not state-primary.

  • Plus One ADU technical assistance — Bundled with the Plus One grant award — HCR-funded TA for subrecipients on ADU project scoping, contractor selection, design review, and homeowner outreach. Layered with local code-compliance support.
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Known state issues (2)

  • legislative-session (since 2021-02) — If enacted, would establish New York's first statewide ADU preemption framework, overriding restrictive municipal zoning across the state. Has not advanced past committee in five consecutive sessions; the political alignment in the state legislature on suburban housing preemption remains unsettled. (source)
  • policy-review (since 2024-12) — NYC's basement and cellar legalization pilot program (authorized by LL 126) accepts applications through April 20, 2029 for pre-existing unpermitted basement apartments in designated community districts. Not state-primary, but the state's largest population center is mid-rollout, which dominates statewide ADU production until and unless the Accessory Homes Act passes. (source)
Federal (United States) — ADU-relevant rules and programs

Federal ADU law

The United States has no federal statute that directly regulates accessory dwelling unit entitlement or design. Land-use authority over ADUs resides with states and local governments under the traditional police power. Federal engagement is limited to financing (Fannie/Freddie/FHA/VA/USDA), flood insurance (FEMA/NFIP), and discretionary housing programs (HUD), which are recorded in sibling sections of this file.

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Federal financing programs

Federal housing-finance agencies and GSEs set nationwide underwriting rules that govern whether an ADU can be financed, appraised, and counted toward mortgage qualifying income. The relevant actors are Fannie Mae, Freddie Mac, FHA (HUD), VA, and USDA Rural Development.

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Federal tax credits

There is no ADU-specific federal tax credit. ADUs may incidentally qualify for existing federal energy-efficiency and clean-energy tax credits when the ADU construction includes qualifying measures.

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Federal housing programs

HUD administers several discretionary programs that can fund ADU-related activity at the grantee's election, but none is an ADU-specific program.

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