A new chapter in New York City housing just opened and Staten Island is at the forefront.

This week, the Adams administration released proposed rules that will make it possible for homeowners to build or convert Accessory Dwelling Units (ADUs) sometimes called tiny homes, backyard cottages, or in-law suites on their properties. It's the first real move toward implementing the City of Yes for Housing Opportunity plan, which aims to ease NYC’s housing crisis by unlocking 80,000 new homes across the five boroughs.

What’s an ADU?

An Accessory Dwelling Unit (ADU) is a smaller, independent residential unit on the same lot as a stand-alone house. In NYC, this includes:

• Backyard cottages
• Basement apartments
• Cellar or attic apartments

They can be used to house extended family, offer rental opportunities, or provide more flexibility for property owners if approved under city standards.

What's in the Proposed Rules?

The newly released rules include:

• Technical Requirements: ADUs must meet standards for flood mitigation, water sensors, entry identification, and occupancy restrictions.
• Basement/Cellar Units: Must follow guidelines for egress (emergency exits), sprinklers, and window placement.
• Certificates of Occupancy: Mandatory for identifying and legalizing ADU units.
• Zoning Limitations: Applies only to existing one- and two-family homes, and in areas where zoning allows it.
  

These rules aim to amend city codes under Local Law 127 of 2024 and will apply citywide though Staten Island is seeing early implementation.

Financial Help for Homeowners: The Plus One ADU Program

The city is launching a support initiative called the Plus One ADU Program, which will:

• Provide low or no-interest loans from the city’s Department of Housing Preservation & Development (HPD)
• Offer grant funding from New York State Homes and Community Renewal
• Be operated in partnership with Restored Homes HDFC, helping homeowners with technical, predevelopment, and construction support
  

This program is specifically for homeowners who want to build or convert ADUs on single-family properties.

Public Hearing: August 18, 2025

An online public hearing will be held by the Department of Buildings to gather community feedback.

💬 Public comments can be submitted in writing or spoken during the virtual session.

The city will review all comments before finalizing the rule changes later this year.

Staten Island Opposition Still Strong

Despite the citywide scope, Staten Island officials and residents remain largely opposed. A lawsuit is ongoing, with plaintiffs arguing that the City of Yes failed to meet state-mandated environmental reviews.

Borough President Vito Fossella and all three Staten Island council members voted against the plan when it passed by a narrow 31–20 margin in late 2024.

Fossella stated:

“We feel stronger than ever that this was a mistake... Staten Island and other parts of the city will suffer, and the city didn’t do enough.”

What's Next?

In addition to ADU rules, other city departments have also released proposed rules:

• DEP (Department of Environmental Protection): New interim flood risk maps to prohibit ADUs in high-risk flood zones.
  
  
• DOH (Department of Health): New certification requirements for radon and chemical vapor safety in basement/cellar areas.
  
  

The city says the plan is part of a broader effort to address a housing shortage, improve local economic opportunity, and move toward carbon neutrality by 2050.

—

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Associate Broker · Matias Real Estate | Founder · Bridge & Boro Team  

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