New York City will pay homeowners up to $395,000 to build an extra dwelling in their garage or basement to help ease the housing shortage

• New York City unveiled a pilot program to help homeowners build accessory dwelling units. 
• The city will give 15 lucky homeowners up to $395,000 each to construct the extra unit. 
• The New York State government has also handed out millions of dollars for ADU development.

As cities and towns across the country struggle with a housing shortage, policymakers are looking to legalize and even fund the construction of accessory dwelling units, or "granny flats," on existing residential property.