Governor Hochul Announces $215 Million Housing Acceleration Fund to Move Shovel-Ready Projects

Governor Kathy Hochul today 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," Governor 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.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "By partnering with these four lending institutions, we are injecting more than $200 million towards the creation of 1,800 new apartments for residents across the state. Other states have shown this innovative, self-sustaining loan model can fill funding gaps that may be the difference between new housing being built or never getting off the ground, and we're thrilled to bring this important tool to New York. We once again applaud Governor Hochul for her efforts to boost the supply of housing across the state, and we thank our partners for sharing our commitment to creating affordable, modern housing in all our communities."

The Community Preservation Corporation CEO Rafael E. Cestero said, "I applaud Governor Hochul and Commissioner Visnauskas for continuing to advance an ambitious housing agenda that puts the needs of New York's communities at the forefront. At a time when cities large and small are facing challenges of housing affordability and supply, this Administration has given us a tool that drives critical investment in housing and will speed the development of new projects across the state. My thanks to the Governor and her team at HCR for their continued partnership. We stand ready to put this funding to work alongside our capital to get shovels in the ground and provide new housing opportunities to all New Yorkers."

Merchants Capital Vice Chairman of Agency Lending Mathew Wambua said, "Merchants Capital is honored to be selected to participate in the HCR Housing Acceleration Fund Program and thrilled to deepen our partnership with HCR and our clients in this important initiative. This program represents a powerful opportunity to accelerate the development of shovel-ready affordable housing projects across New York City and New York State. By leveraging these low-cost loans, we can help bring much-needed housing to communities throughout the region-ensuring more New Yorkers have access to safe, stable and affordable homes."

Enterprise's Capital Division President Lori Chatman said, "Enterprise Community Partners is honored to partner with New York State's Homes and Community Renewal through its Housing Acceleration Fund. This innovative program reflects our shared vision of making home and community places of pride, power, and belonging. By combining public resources with mission-driven capital, we can move shovel-ready, mixed-income housing projects forward faster - closing critical financing gaps and delivering the affordable homes New Yorkers urgently need."

LISC NY Senior Executive Director Valerie White said, "We thank Governor Kathy Hochul and New York State Homes and Community Renewal for their leadership and partnership in creating the Housing Acceleration Fund and moving swiftly to bring it to fruition. LISC NY is proud to work with the State to deliver critical resources that help communities develop mixed-income housing and move more projects from vision to reality. This $5 million investment from HCR, alongside LISC NY's own $25 million commitment, will empower affordable housing developers to overcome predevelopment barriers, strengthen housing pipelines, and deliver the quality, affordable homes New Yorkers urgently need."

State Senator Brian Kavanagh said, "Developing more affordable housing and preserving and upgrading existing homes are essential parts of our strategy - along with tenant and homeowner protections - to address the crises of inadequate housing supply, unaffordability, evictions, and homelessness. So I was very pleased to advocate for this funding - which we doubled to $100 million during the course of budget negotiations. The Housing Acceleration Fund will help secure and accelerate much housing construction that we urgently need. I thank Governor Kathy Hochul and Commissioner RuthAnne Visnauskas for their leadership in backing this program and promptly making these funds available. And I congratulate and thank the four well qualified administrators whom I'm confident will deliver on the promise of this program."

State Senator Rachel May said, "The Housing Acceleration Fund is a smart, targeted investment in New York's future. Communities across the state want to build more housing, but too often good projects are held back by gaps in financing. This program helps get good projects off the ground, including mixed-income housing that supports the workforce and strengthens neighborhoods. In Syracuse and across Central New York, the need for new, affordable, and energy-efficient housing is especially acute, and the State's investment will help meet that demand while creating more vibrant, inclusive communities."

Assemblymember Linda B. Rosenthal said, "The Housing Acceleration Fund is a welcome tool to help ease the housing crisis facing New York State. Communities around the state are grappling with rising construction costs and would welcome new rental housing, but lack the financing to get the job done. With Governor Hochul's welcome announcement of a $215 million investment from the state, we can jumpstart construction on these projects and continue our work toward ensuring that every New Yorker has a safe, affordable place to call home."

Assemblymember Micah Lasher said, "It is outstanding that Governor Hochul and HCR are announcing a major public revolving loan fund for affordable housing. I was proud to introduce legislation at the beginning of the year with Senator May to create this kind of fund, and Governor Hochul and her team have done it even bigger and better. By leveraging public dollars to unlock private investment, this fund will create thousands of new homes and generate over a billion dollars in housing development across the State. When we think creatively to solve our housing crisis, we can deliver real results for New Yorkers."

Governor Hochul's Housing Agenda
Governor Hochul is dedicated to addressing New York's housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York's housing supply through new tax incentives, capital funding, and new protections for renters and homeowners. Building on this commitment, the FY26 Enacted Budget includes more than $1.5 billion in new State funding for housing, a Housing Access Voucher pilot program, and new policies to improve affordability for tenants and homebuyers. These measures complement the Governor's five-year, $25 billion Housing Plan, included in the FY23 Enacted Budget, to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. More than 68,000 homes have been created or preserved to date.

The FY25 and FY26 Enacted Budgets also strengthened the Governor's Pro-Housing Community Program - which allows certified localities exclusive access to up to $750 million in discretionary State funding. Currently, more than 370 communities have received Pro-Housing certification.

Contact the Governor's Press Office