New York State Launches $215 Million Housing Acceleration Fund to Speed Up Construction of Mixed-Income Housing

Strategic Insights -

The New York State Housing Acceleration Fund, a $215 million program, aims to accelerate the construction of mixed-income residential projects across the state. The fund, announced by Governor Kathy Hochul, is a key housing proposal from her 2025 State of the State address. The program is designed to provide low-cost construction loans to fill financing gaps in mixed-income housing developments.

Governor Hochul stated, "To combat the housing crisis in New York, we're leaving no stone unturned. This new, innovative loan program is a powerful new tool to help jumpstart the construction of mixed-income housing in communities across the state." The fund is estimated to generate upwards of $1 billion in new housing investment throughout New York State.

Key Takeaways:

  • The Housing Acceleration Fund is a $215 million program to speed up the construction of mixed-income housing projects across New York State.
  • The fund is designed to provide low-cost construction loans to fill financing gaps in mixed-income housing developments.
  • The program is expected to result in approximately 1,800 new homes statewide.
  • The fund is a key part of Governor Hochul's all-of-the-above approach to increasing housing supply to address acute housing needs and accommodate job growth statewide.
  • The program is a result of Governor Hochul's $100 million investment secured in the FY26 Enacted Budget and matched with $115 million from awarded participating lenders.
  • 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.
  • The fund awards announced today are expected to provide $45.5 million to Community Preservation Corporation, $42 million to Merchants Bank, $7.5 million to Enterprise Community Partners, and $5 million to Local Initiatives Support Corporation.
  • The achieved funding from HCR with the aid of the HOAF partners totals upward of $200 million, fostering the creation of 1,800 new apartments for residents across the state.

Statistics:

  • The New York State Housing Acceleration Fund has a total budget of $215 million.
  • The fund is expected to provide approximately $1 billion in new housing investment throughout New York State.
  • The program is anticipated to result in approximately 1,800 new homes statewide.
  • Half of the State's $100 million investment is allocated for projects within New York City, and half is allocated for projects throughout the rest of the state.
  • The fund is designed to utilize public capital to leverage private capital investment in mixed-income multifamily rental production.
  • The program is a result of Governor Hochul's $100 million investment secured in the FY26 Enacted Budget and matched with $115 million from awarded participating lenders.

Sources:

  • Governor Kathy Hochul, New York State Governor's Office
  • New York State Homes and Community Renewal (HCR)
  • Community Preservation Corporation
  • Merchants Bank
  • Enterprise Community Partners
  • Local Initiatives Support Corporation
  • State Senator Brian Kavanagh
  • State Senator Rachel May
  • Assemblymember Linda B. Rosenthal
  • Assemblymember Micah Lasher
  • MIL OSI USA News (http://milnz.co.nz/mil-osi-aggregation/)
  • Governor Hochul's Housing Agenda