$215M launches state's new housing construction program

ALBANY | Gov. Kathy Hochul has announced the launch of the Housing Acceleration Fund, a $215 million first-of-its-kind program to speed up construction of shovel-ready mixed-income residential projects across New York State. One of the Governor's key housing proposals from her 2025 State of the State, the Housing Acceleration Fund is part of her all-of-the-above approach to increasing housing supply to address acute housing needs, and accommodate job growth statewide. Too often, communities do not have tools to create mixed income rental housing, leaving many developments permit-ready, but unable to secure financing. New York's Housing Acceleration Fund will help address this vital need and spur the development of new housing statewide. The fund is catalyzed by the Governor's $100 million investment secured in the FY26 Enacted Budget and matched with $115 million from awarded participating lenders. "To combat the housing crisis in New York, we're leaving no stone unturned," Gov. Hochul said. "This new, innovative loan program is a powerful new tool to help jumpstart the construction of mixed-income housing in communities across the state. These new resources are just one more way for us to help build more housing opportunities for our families, seniors and young adults." The Housing Acceleration Fund awards announced today are expected to result in approximately 1,800 new homes statewide. The awardees are: Community Preservation Corporation: $45.5 million Merchants Bank: $42 million Enterprise Community Partners: $7.5 million Local Initiatives Support Corporation: $5 million Half of the State's $100 million investment is appropriated for projects within New York City and half is allocated to projects throughout the rest of the state. Awardees will provide $115 million in additional capital, bringing the total amount of funding for projects within New York City to $100 million and the amount for projects throughout the rest of the state to $115 million. The Housing Acceleration Fund, administered by New York State Homes and Community Renewal (HCR), will provide low-cost, construction loans to fill financing gaps in the construction of mixed-income housing developments. The Fund is designed to utilize public capital to leverage private capital investment in mixed-income multifamily rental production. The Fund is estimated to generate upwards of $1 billion in new housing investment throughout New York State. The revolving loan fund model complements other HCR programs to enhance housing production and will speed up production of new rental housing beyond reliance upon limited resources dedicated to the creation of 100 percent affordable housing such as tax-exempt bonds and low-income housing tax credits. The program is designed to self-sustain over time through loan repayments once projects convert to permanent financing once the project is complete. To learn more about the New York State Housing Acceleration Fund program, visit the HCR website.

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$215M launches state's new housing construction program

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