Governor Kathy Hochul has announced the launch of the Housing Acceleration Fund, a $215 million program aimed at expediting construction of mixed-income residential projects across New York State. The initiative is part of the Governor’s broader strategy to address housing shortages and support job growth.
The fund is supported by a $100 million investment from the state’s FY26 Enacted Budget, with an additional $115 million contributed by participating lenders. According to Hochul, “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. These new resources are just one more way for us to help build more housing opportunities for our families, seniors and young adults.”
The first round of awards from the fund will support approximately 1,800 new homes statewide. Funding recipients include Community Preservation Corporation ($45.5 million), Merchants Bank ($42 million), Enterprise Community Partners ($7.5 million), and Local Initiatives Support Corporation ($5 million). Half of the state’s allocation will go toward projects in New York City; the other half will be distributed throughout the rest of New York.
Administered by New York State Homes and Community Renewal (HCR), the fund provides low-cost construction loans intended to fill financing gaps for mixed-income developments. The revolving loan model is designed to leverage private capital alongside public investment and aims to generate over $1 billion in new housing development statewide.
RuthAnne Visnauskas, Commissioner of HCR, 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.”
Rafael E. Cestero, CEO of Community Preservation Corporation stated: “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.”
Mathew Wambua, Vice Chairman of Agency Lending at Merchants Capital added: “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.”
Lori Chatman from Enterprise Community Partners commented: “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.”
Valerie White from LISC NY 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 noted: “Developing more affordable housing and preserving and upgrading existing homes are essential parts of our strategy – along with tenant and homeowner protections –to address crises… I was very pleased… The Housing Acceleration Fund will help secure… much needed… I thank Governor Kathy Hochul…”
State Senator Rachel May stated: “The Housing Acceleration Fund is a smart… targeted investment… Communities want… but too often good projects are held back by gaps in financing…”
Assemblymember Linda B. Rosenthal said: “The Housing Acceleration Fund is a welcome tool…”
Assemblymember Micah Lasher added: “It is outstanding that Governor Hochul … announcing a major public revolving loan fund … By leveraging public dollars … create thousands … generate over a billion dollars …”
Governor Hochul’s recent budgets have included several measures aimed at increasing affordable rental units through tax incentives as well as direct funding programs such as her five-year plan targeting 100,000 affordable homes statewide—including supportive services—and electrification upgrades on an additional 50,000 residences.
More than 68,000 homes have already been created or preserved under these initiatives so far.
Additionally,
the Pro-Housing Community Program has been expanded under recent budgets,
offering certified localities exclusive access
to up
to
$750
million
in discretionary state funding.
Currently,
over 370 communities hold Pro-Housing certification.
