Amid an affordable housing shortage on Shelter Island, a new New York State-funded program aimed to increase the housing stock by helping build accessory dwelling units, or ADUs, is taking hold.
The state initiative, known as the Plus One ADU Program, which manages $85 million in funding, provides grants to homeowners to build ADUs (commonly known as “granny flats” or “backyard cottages”) on their property.
Shelter Island is among the East End municipalities participating in the program and has received a total of $3.5 million in state funding so far, which gives them the capacity to provide up to 16 grants — for up to $125,000 per household — for residents looking to create additional housing.
“It will be transformational for us,” said Liz Hanley, chair of Shelter Island’s Community Housing Board. While 16 new units may not sound like much, she said, it’s a meaningful expansion for the town of around 2,600 full-time residents, according to a 2022 government estimate.
ADUs have become an increasingly popular way to attempt to alleviate the housing crisis across the country. They’re often used to house extended family members or to generate supplemental income for the homeowner.
One of the first recipients of Shelter Island’s rollout of the state’s program is Jimbo and Mary Theinert, who applied for the grant in mid-2023, received approval a few months later, and quickly began construction next door to their home. Now, their two-bedroom, two-bathroom ADU is nearly complete.
To qualify for the funds, applicants must meet income requirements and be year-round residents, along with additional criteria related to zoning, lot size, and other property specifications. Additionally, homeowners must agree to provide full one-year leases to tenants for a compliance period of 10 years, a measure meant to curb short-term summer rentals that cater to tourists and drive out locals.
Hanley, the chair of the Housing Board, said they have approved about half of the 16 available grants at this time.
At an informational session on March 1, about 15 residents gathered at the Shelter Island firehouse to learn more about the program. Sitting upstairs across a spacious room, the residents — the majority of whom were older — asked a range of questions from what would happen if they sold their house before the compliance period ended (they would need to reimburse a portion of the grant) to whether they were required to charge rent to family members (an official lease is required, but the rent can be set at $0).
Jimbo attended and shared his experience with the process, saying everything has gone very smoothly except for one hurdle that has delayed the final steps: Homeowners adding an ADU are required to upgrade their septic systems. The Theinerts applied for Suffolk County’s Septic Improvement Grant to fund the new septic tank which costs between $20,000 to 30,000, but their application has been stalled for 18 months. Until they get a new tank, their ADU cannot receive the necessary certificate of occupancy to be rented out.
Despite their red-tape hurdle, interest in the program is growing as more residents explore how ADUs could provide housing for family members or generate extra income for themselves.
Hanley, who reviews each application, said many applicants hope to house family members — a crucial effort in a town where longtime residents have been priced out. “That, for me, is just really rewarding,” she said.
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