Bill > A06778

This bill establishes the Accessory Dwelling Unit (ADU) Incentive Act, which creates a forgivable loan program to encourage homeowners to add affordable rental units to their properties. The program, administered by the New York State Division of Homes and Community Renewal, offers loans up to $75,000 or 50% of project costs (whichever is less) to help property owners construct accessory dwelling units, which are independent living spaces located on the same lot as an existing primary residence. To qualify, homeowners must occupy the property, rent the unit to tenants meeting specific income guidelines (at or below 100% of area median income), and charge rent at 70% of area median income. The loan will be forgiven if the unit remains rented to qualifying tenants for the full 20-year loan term. The bill also provides additional incentives, including a tax credit for property owners who participate (up to $10,000) and potential property tax exemptions for the added value of the ADU. The goal is to increase affordable housing options across New York State by reducing the financial barriers to creating these additional living spaces, particularly in response to housing affordability challenges exacerbated by the COVID-19 pandemic.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A6778