Mamdani Turns Basements Into Bankable Granny Flats Across New York

Mayor Zohran Mamdani on Wednesday flipped the switch back on for city-backed financing for accessory dwelling units, the so-called “granny flats,” reviving a stalled pilot program and opening a new application window that runs through June 12, 2026. The move restores city loans and technical support for homeowners who want to convert basements, garages or backyard cottages into legal, income-producing apartments.

As reported by THE CITY, homeowners can apply through June 12, 2026, and City Hall said it hopes to close on a first batch of loans later this year. The announcement gives fresh momentum to the Plus One ADU pilot as officials work to turn recent zoning changes into actual homes without completely rewriting neighborhood character.

How the revived…

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