New state programs aim to create up to 50 long-term rentals by rehabbing old apartments and building new accessory dwelling units
As many as 50 new long-term rentals are in the works in the Eastern Adirondacks under two state programs that rehab old apartments that are no longer inhabitable, and pay property owners to fashion small living quarters on their land.
These spaces are viewed as critical by housing advocates, because many long-term rentals have been converted into more lucrative short-term rentals since the pandemic, leaving those who cannot afford to buy a home nowhere to go.
They are also important because, while a 50-apartment complex would be unfeasible in most Adirondack communities, a more scattered approach is workable and — in sparsely settled towns — can have a meaningful impact on housing availability.
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Rehabbing vacant apartments
The Vacant Rental Improvement Program (VRP) — administered by the state Housing Trust Fund Corporation’s Office of Community Renewal — pays property owners up to $75,000 to rehab substandard apartments that have fallen into disuse.
Most of these tend to be upstairs in commercial buildings located in hamlets, although it can also apply to old homes that have been carved into apartment space, said Nicole Justice Green, executive director at the North Country Rural Development Coalition, the local link between property owners and the state.
Green said the coalition has funding for 37 properties in Essex, Warren and Washington counties. To qualify, property owners must commit to renting to people whose incomes are up to 80% of the Area Median Income (AMI). Median household income in Essex County was $70,000, while in Warren and Washington counties it was $78,000 and $72,000 respectively.
“You can certainly put an apartment back online for $75,000,” Green said. “That might include new wiring, plumbing, flooring — those are major-systems repairs.”
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Some might require even more work, but property owners can use the funding to supplement their own financial contribution. Others might, for example, need only a new set of stairs to become code-compliant at far less of a cost.
The program can also help revitalize hamlets by making it more feasible to fix up deteriorating buildings. State incentives have existed for rehabbing ground-floor commercial space, but, until now, not upstairs apartments.
Creating Accessory Dwelling Units
The second program pays property owners up to $125,000 to create a small dwelling on their existing lot — spaces that go by the bureaucratic name of ADUs (Accessory/Auxiliary Dwelling Units), but are more commonly known as mother-in-law apartments or granny flats.
The New York Office of Community Renewal’s Plus One ADU program was funded in 2022 with $85 million, but for unknown reasons, the program never caught on in the North Country.
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Green said the Rural Development Coalition has plans to light a fire under the initiative, and has sufficient funding, $1.5 million, to build about 10 or more ADUs.
What are Accessory Dwelling Units?
Also called Auxiliary Dwelling Units, AUDs, sometimes known as “granny flats,” are annexes to existing homes, usually in the form of a small apartment fashioned out of a garage, basement, outbuilding or an addition to the main home.
Green said an ADU can be along the lines of an addition, an apartment above a garage or a tiny home on a lot next to an existing home. Not all conversions will hit the $125,000 limit, meaning the funding could stretch further.
“My hope is that with a garage conversion, we should come in less than that,” she said. “Same if it’s an in-law suite or a small addition. But placing a brand new tiny home, it could come close to that, depending on the infrastructure. If I’m having to expand a well and a septic system, then we’re going to hit $125,000.”
Green said calls of interest have been coming in since the project was announced, and that if the program is successful this year, more could be added going forward. “If we are successful, now that we are designated as the local-program administrator, we will continue to receive funding on a rolling basis for this program,” she said. Once established, the program could be eligible for $5 million a year in the North Country Coalition’s coverage area.
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A program poised for success
A common sticking point is zoning, which can prohibit ADUs, but a number of Essex County towns have not adopted zoning codes and have no such restrictions. Green said that North Elba has modified restrictive codes so as to be accommodating to ADUs.
The ADU also has to be rented long-term and affordably for 15 years, and the property must be on the applicant’s permanent residence. Eligible renters can earn up to 100% of AMI, under the state guidelines.
The program checks a lot of boxes for North Country needs, Green said, including long-term rental units, housing for the elderly which is in exceedingly short supply and providing an income stream for homeowners.
“We’re going to really work individually with each of the eligible applicants to determine what the possibilities are if they’re not sure which direction they want to go, or what’s going to be most feasible for their property,” Green said.
Those interested in applying can email [email protected] or call 518-585-6366.
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