Governor Kathy Hochul has announced the release of program guidelines for $200 million in new investments aimed at revitalizing downtown Albany. The funding is part of the broader Championing Albany’s Potential (CAP) Initiative and is detailed in the Downtown Albany Strategy, which was released last week. The funds will be used to support redevelopment projects, expand housing options, and strengthen community assets with the goal of transforming Albany’s city center.
Applications for these programs are expected to open in the coming weeks.
“New Yorkers deserve a world-class capital city, and my CAP Initiative is delivering the transformational change Albany needs,” Governor Hochul said. “These high-impact investments will drive growth, create housing, strengthen neighborhoods, and reimagine public spaces—making downtown a place where our families, visitors, and businesses will thrive.”
Empire State Development President, CEO & Commissioner Hope Knight commented on the approach: “Our strategy of targeting investments in these three areas are key to revitalizing downtown Albany and strengthening the Capital Region’s economy more broadly. By aligning public and private resources, we’re expanding housing, activating public spaces, and driving long-term growth that benefits residents, businesses, and visitors—advancing Governor Hochul’s vision for a stronger, more competitive capital city.”
The Empire State Development Board has approved funding for three main investment programs:
– The Transformative Projects Fund will provide up to $120 million for major projects intended to have lasting economic and community impact by enhancing public spaces and reshaping how downtown is experienced.
– The Housing Investment Fund allocates up to $40 million in grants for new housing projects. This fund aims to increase housing supply through new developments or conversions from commercial use while addressing underutilized sites.
– The Community Investment Fund dedicates up to $40 million toward placemaking efforts such as revitalizing commercial corridors and improving neighborhood amenities.
New York State Office of General Services Commissioner Jeanette Moy stated: “These intentional funding opportunities announced today are vital to building more affordable housing, welcoming public spaces, and strong community connection throughout our capital city. OGS is proud to be part of Governor Hochul’s CAP initiative and lead the Reconnect the Empire State Plaza project that will bridge this iconic government complex to surrounding neighborhoods. These targeted investments are key in strengthening Downtown Albany’s future as a vibrant hub for living, working, and visiting.”
Marie Therese Dominguez from the New York State Department of Transportation added: “The targeted investments outlined in Governor Hochul’s Championing Albany’s Potential Initiative will put the revitalization of our Capital City into high gear. Together with NYSDOT’s transformative projects like the new Livingston Avenue Bridge and the re-imagining of the Interstate 787 corridor, these investments championed by Governor Hochul represent a once-in-a-generation opportunity to craft a brighter future for downtown Albany and create an even more spectacular place for people to live and work.”
State Senator Patricia Fahy emphasized collaboration across government levels: “As I like to say, Albany isn’t just turning the page on a new chapter in its history — we’re writing an entirely new book as we look to the future. Revitalizing Downtown Albany…begins with three key tenets: building more housing units that are truly accessible…turning the lights back on for downtown’s small businesses…and investing in community improvements…Thanks to the transformative $400 million we secured last year…Albany’s future is bright…” She also encouraged continued engagement from residents.
Assemblymember John T. McDonald III described this phase as moving from planning into action: “The Championing Albany Potential (CAP) initiative is entering an exciting new phase as the community-driven Downtown Albany Strategy advances from ideas and concepts to implementation. This transformative program prioritizes tripling downtown residential opportunities…boosting tourism…and making critical streetscape improvements…I am confident it will drive meaningful investment in downtown Albany…”
Assemblymember Gabriella A. Romero highlighted local impacts: “Today’s approval of $200 million through the Championing Albany’s Potential Initiative represents a bold …commitment …By investing in transformative redevelopment projects …expanding much-needed housing …we are taking concrete steps …These targeted funds will help bring underutilized spaces back to life…”
Albany County Executive Daniel P. McCoy noted ongoing progress: “We’ve seen meaningful public and private investment take root downtown…this $200 million will help scale those efforts….By focusing on transformative projects…housing…and community-driven improvements…”
City of Albany Mayor Dr. Dorcey Applyrs explained how this stage brings clarity: “This next phase …moves us from strategy to action….With clear guidelines …we now have a structured path ….Each program is designed with accountability ….Through competitive processes ….the Governor is positioning downtown Albany for sustained growth…”
Projects funded through these programs will be selected competitively based on their potential economic impact, ability to expand housing options or enhance public spaces, as well as measurable benefits delivered locally.
For further details about CAP Initiative programs including application information when available visit esd.ny.gov.