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Basement bachelor pad? Backyard bungalow? If you've ever dreamed of squeezing a little extra living space onto your New York City property (legally), the city just dropped a major update you’ll want to bookmark.
Last week, the Department of Buildings released long-awaited proposed rules for accessory dwelling units (ADUs), a central pillar of Mayor Eric Adams’ “City of Yes” housing plan. The draft guidelines pave the way for homeowners to build small secondary homes in basements, backyards, garages and more, provided they meet a host of safety and zoning criteria.
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The fine print gets specific: For cellar and basement units (which have historically existed in legal limbo), the city would now require two exits, water sensors in every habitable room and automatic sprinklers. Properties in high-risk flood zones are off-limits. And if the ADU entrance isn’t visible from the street, expect to hang a sign with five-inch red letters screaming “ADU in rear” with an arrow—subtle!
The proposal also caps ADUs to one per lot for single- and two-family homes and owners must live in the primary residence. That means no absentee landlords packing in renters for profit; the law is more intended for “granny flats” than Airbnb goldmines.
Mayor Adams called the move “an important step toward unlocking thousands of safe, legal homes for New Yorkers.” It’s part of a larger effort to address the city’s severe housing shortage by diversifying the types of homes that can be built—and where. In theory, the new rules could help create over 80,000 new homes over the next 15 years, offering homeowners more flexibility and renters more options.
This is all on the heels of the city’s “Plus One ADU” pilot program, launched in 2023, which offers eligible homeowners up to $395,000 in funding to build their own backyard or basement units.
If you want to weigh in yourself, the Department of Buildings is hosting a virtual public hearing on the proposed rules on August 18 at 11 am and public comments will be considered before final rules are adopted later this year.
Bottom line: New York’s smallest legal apartments could soon be in your own backyard, literally. Just don’t forget the flood alarm.