New York will pay homeowners up to $125,000 to build an ADU in their backyard to help ease the nation's housing shortage

• New York allocated $85 million to pay homeowners for building ADUs in their backyards.
• Grants are given to local governments or nonprofits who distribute the funds.
• The state has given out $23.4 million to go to homeowners from the Buffalo area to New York City.

New York is doling out millions to help homeowners build tiny homes, called accessory dwelling units, or ADUs, in their backyards. 

As of August 15, the Empire State has spent $23.4 million doing so, according to New York State Homes and Community Renewal, which is in charge of the funds.