Shelter Island NY Homeowners Can Get Up to $125,000 to Build a Backyard Cottage

Get Up to $125,000 to Add a Cottage or Suite to Your Property

If you own a home on Shelter Island, New York, the state will pay you up to $125,000 to build a small secondary home on your property — called an Accessory Dwelling Unit (ADU).

ADUs go by many names: backyard cottage, granny flat, in-law suite, or basement apartment. They are small, separate homes built on the same property as your main house.

About the Program

This grant comes from New York State's Plus One ADU Program, which manages $85 million in state funding. Shelter Island received $3.5 million of that, enough to fund up to 16 grants on the island.

Families are already using it. One couple on Shelter Island — Jimbo and Mary Theinert — applied in mid-2023, got approved, and their two-bedroom, two-bathroom ADU is now nearly complete.

Why Build an ADU?

There are two big reasons homeowners build ADUs:

• Family housing: Give aging parents, adult children, or other relatives a private place to live on your property
• Rental income: Rent it out to generate steady extra income every month

Who Can Apply?

To qualify, you must:

• Own and live in your home on Shelter Island as a year-round resident
• Meet income requirements set by the program
• Meet zoning and lot size requirements for your property

How to Apply

Learn more and apply through the New York State Plus One ADU Program at hcr.ny.gov/adu. You can also contact Shelter Island's Community Housing Board for local guidance.

Bottom Line

This program turns your backyard into money — either for family living or rental income, paid for by the state. Only 16 grants are available for Shelter Island. If you are a year-round homeowner, check your eligibility now.