NY State Launches $215M Housing Fund
To Accelerate Building 1,800 New Homes
ALBANY—New York announced on Oct. 27 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.
State officials noted that too often communities do not have the 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. Governor Kathy 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 this week 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 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 upward of $1 billion in new housing investment throughout New York State.
Published: October 28, 2025.