State funding still available for Lewisboro homeowner ADUs

By MARTIN WILBUR

Lewisboro homeowners who want to create an accessory dwelling unit on their property are running out of time to apply for state financing to defray a large portion of the expense.

Potential applicants for the Plus One ADU Program have until this Sunday, March 1, to submit their document on the Tarrytown-based Housing Action Council website to be considered for the funding, said Savannah Hoffman, the organization’s program manager. Hoffman said that the cutoff date was established by the state, but she encouraged interested homeowners to submit their applications because that date can be extended if enough aren’t received.

Under a grant from the New York State Division of Housing and Community Renewal, the council received $2 million last year to make 16 awards of up to $125,000 to each approved homeowner who is looking to build an accessory unit in three participating communities — Lewisboro, Pleasantville and Tarrytown. After a 10% administration fee, $112,500 is available to create the accessory residence. The money is part of $85 million that was distributed to participating communities statewide last year.

As of Feb. 25, seven applications have been received from the three communities, including three from Lewisboro, and one application has already been awarded, according to Hoffman.

Hoffman said applicants must fall within the maximum income thresholds of no more than 120% of Area Median Income and adhere to their town’s zoning requirements to be accepted. For a homeowner living alone, the maximum annual gross income must not exceed $142,800 while a household of four can have a maximum income of $204,000 to be eligible. There are no income restrictions on tenants, but it must be used as their primary residence.

Work that would be covered is converting an interior space, attic, basement or garage into a separate unit. That includes design, permitting, project budgeting, environmental site review, contractor selection and scoping, construction oversight, landlord training and post-construction monitoring. Also included are technical assistance fees, land surveys and payments to architects and other vendors. 

“It sounds like a lot of money, but ADUs are actually very expensive depending on what you’re doing,” Hoffman said. “So far, from what I’ve seen, everybody tends to go over budget, folks tend to go over it just because of costs that build up.”

Hoffman said that so far applicants have either wanted to build an accessory unit for aging parents or a grown child returning from college who is not yet prepared to live on their own, or retirees who are hoping to supplement their income by renting out the unit.

Lewisboro Supervisor Tony Gonçalves said that after being notified by the Housing Action Council about the pending grant money, the Town Board approved a resolution in December 2024 and a memorandum of understanding was signed the following month.

With a regional housing crunch and older residents looking for extra money, it made sense to be part of the program, Gonçalves said.

“We thought it was a good program for folks that wanted to be able to have an accessory dwelling unit and get help with things, focusing on the build-out of that accessory dwelling unit,” he said. “It gives folks the opportunity to gain some additional rental income. There’s a need for more housing in town, so the hope is that this would stimulate or contribute towards it.”

This is the third round of HRC funding for the Plus One ADU Program, Hoffman said. In Westchester, the first two appropriations were entirely administered through Habitat for Humanity. But as more communities sought to get involved, Habitat for Humanity needed assistance and the Housing Action Council stepped in, she said.

Hoffman is hopeful that the program will be renewed by the state but that depends on whether the legislature appropriates additional money.

“Hopefully, that will get funded again,” she said. “It kind of depends on the performance of this $85 million, what happened, how many of these ADUs get built.”

For more information on the Plus One ADU Program and an application that can be submitted online, visit housingactioncouncil.org and click on the “ADU” tab on the upper portion of the page.