State Awards $67M to Seed Development Of 2,400 New Homes in Mid-Hudson Region

HYDE PARK, NY—State officials last month unveiled the first 13 awards totaling $67 million under the Mid-Hudson Momentum Fund, a $150-million initiative geared to increasing the housing supply in New York’s Mid-Hudson region.

The winning projects include mixed-use developments, transit-oriented developments along major commuting hubs, and critical infrastructure improvements that will allow for additional housing in the future. Together, these projects will receive approximately $67 million in state funding to unlock more than $576 million in private investment and more than 2,400 units of housing, including more than 1,300 affordable units, across the Mid-Hudson region.

“Communities all over the Mid-Hudson region are stepping up in extraordinary ways to address the housing crisis, and with these awards, New York is making good on our commitment to supporting them,” Gov. Hochul said for the announcement on May 29. “As the first state program to reward our Pro-Housing Communities, the Mid-Hudson Momentum Fund is not just helping them build more housing—it’s helping them chart a path toward a more affordable New York. My administration remains laser-focused on building the homes we need to bring down housing costs, and I am ready to work with any community that wants to join us.”

The City of Peekskill will be receiving $10 million for essential infrastructure improvements required to accommodate up to 1,080 new homes from the Mid-Hudson Momentum Fund.

The Mid-Hudson Momentum Fund is focused on mixed-use housing and essential infrastructure projects that directly support housing growth in the Mid-Hudson Region. Winning projects were selected based on alignment with the Mid-Hudson Regional Economic Development Council’s strategic plan, public support, the number of affordable housing units being created and, for infrastructure projects, their ability to either create or upgrade systems with a demonstrated connection to increasing housing density.

The projects that secured funding include:

  • City of Kingston: $10 million for the Golden Hill project to transform the former Ulster County jail into a new mixed-income and mixed-use community with 164 units of affordable housing.
  • City of Peekskill: $10 million for essential infrastructure improvements required to accommodate up to 1,080 new homes.
  • Village of Ossining: $10 million for the construction and operation of a new Indian Brook Water Treatment Plant to ensure high-quality drinking water for approximately 300 homes.
  • City of Mount Vernon: $8.7 million for the 115 South Macquesten transit-oriented development project to construct two residential towers on a shared mixed-use base with approximately 315 units of housing.
  • City of Poughkeepsie: $5 million for the 316 Main Street project to construct a six-story, mixed-income building with 80 units of housing and more than 21,000 square-feet of commercial space.
  • City of Kingston: $4.75 million for the Barrel Factory Apartments project to construct a 100-unit mixed-use, mixed-income development.
  • Village of Red Hook: $3.465 million for the Red Hook Gateway project to extend water, roads, utilities and public infrastructure for up to 40 potential new units of housing.
  • City of Newburgh: $3.05 million for the 104 Washington St. project to construct a 14-unit, mixed-use building with an ice cream manufacturing facility, street level suites for retail and food and beverage, and co-working office space.
  • City of Newburgh: $2.6 million for the 191 Washington St. project to repurpose a vacant building into 70 units of housing, commercial, retail, office, and light manufacturing space.
  • City of Beacon: $2.5 million for the Two Cross St. project to construct a fully affordable, 18-unit mixed-use building.
  • City of Newburgh: $2.5 million for The Green transit-oriented development project to construct an innovative, mixed-use affordable housing development with 118 apartments.
  • Village of Haverstraw: $2.5 million for the 63 Maple Ave. project to construct a five-story residential building with approximately 78 homes.
  • City of Poughkeepsie: $2 million for the Newberry project to construct a 28-unit, mixed-use development on the site of a long-vacant, blighted building.

The second funding round is now open through June 28 and private companies, not-for-profits, municipalities, and public benefit corporations including IDAs and LDCs are encouraged to apply through Empire State Development’s CFA portal. Funding will be broken up into mixed-use housing projects and essential infrastructure projects with awards ranging from $2 to $10 million. For more information, visit ESD’s website,

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