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NYC's legalization of tiny homes and ADUs restricted by regulations

Feb 01, 2025 - businessinsider.com
New York City has legalized the addition of accessory dwelling units (ADUs) to certain one- and two-family homes as a measure to address its housing shortage. However, both city and state regulations impose significant restrictions on ADU construction. The city's zoning reforms allow homeowners to add ADUs for rental income or personal use, but they face limitations such as bans on ADUs in attached rowhomes, townhouses, and areas prone to flooding. Additionally, New York State's Multiple Dwelling Law (MDL) imposes costly requirements, like sprinklers and specific ceiling heights, on buildings with three or more units, complicating ADU additions in existing structures.

Despite these challenges, the city is working on new rules and resources, including a "one-stop shop" website and pre-approved designs, to facilitate ADU construction. The state legislature could amend the MDL to ease these barriers, but there is little indication of legislative interest. The city's "Plus One ADU" pilot grant program has been expanded, offering financial support to eligible homeowners. While ADUs are seen as a potential solution for affordable housing, their impact in New York City is expected to be limited due to the regulatory hurdles and owner-occupancy requirements.

Key takeaways:

  • New York City has legalized the addition of accessory dwelling units (ADUs) to certain one- and two-family homes, but both city and state regulations significantly limit their construction.
  • The city's zoning reforms allow ADUs but impose restrictions, such as prohibiting them on lots with attached rowhomes, in historic districts, and in areas prone to flooding.
  • New York State's Multiple Dwelling Law (MDL) further complicates ADU construction by imposing costly requirements on buildings with three or more units, although there are some exceptions.
  • The city is developing new rules and resources to support ADU construction, but progress is slow, and the impact on housing stock is expected to be limited.
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