New York City homeowners eyeing to expand their living quarters through backyard cottages or attic apartments now have the prospect of property tax breaks. As reported by Crain's New York, these tax breaks could reach up to $200,000 of the increased market value, a deal reached by the City Council and Mayor Eric Adams' administration.
As part of the City of Yes zoning overhaul, new tax incentives aim to encourage the creation of accessory dwelling units (ADUs), potentially adding tens of thousands of new apartments. Despite opposition, including from Staten Island, where concerns about neighborhood disruption and strained infrastructure persist, the push to simplify regulations is seen as key to addressing the city's housing shortage. The city has also introduced the Plus One ADU pilot program, offering nearly $400,000 in predevelopment and construction assistance to a select group of homeowners, as detailed by SI Live. The program is available across all five boroughs through the Department of Housing Preservation and Development (HPD).
"We are moving to set up a tax exemption for ADUs to defray any additional up-front cost that could otherwise be a barrier preventing New Yorkers from reaping the benefits of an ADU for their family," said Casey Berkovitz, a City Planning department spokesman, as mentioned in Crain's New York. This exemption aims to encourage homeowners to navigate through growing property tax valuation stemming from investments in their real estate.
Addressing the statewide housing crisis, Mayor Adams highlighted, "For our seniors fighting to stay in the neighborhoods they call home or young people struggling to find a living space, accessory dwelling units can be a lifeline to stable, affordable housing," in a statement reported by SI Live. Opposition to the plan is strong, with urban planners and architects urging a case-by-case evaluation. In Staten Island, many residents are concerned about losing parking spaces, as the plan proposes removing on-site parking requirements, which they consider essential.
The City of Yes zoning changes depend on a key council vote on Dec. 5. If passed, they could result in up to $400 million in tax breaks over ten years.
