Hochul Unveils $215M Fund to Fast-Track Mixed-Income Housing

ALBANY, N.Y. — Governor Kathy Hochul has launched the Housing Acceleration Fund, a new $215 million initiative designed to jumpstart the construction of mixed-income residential developments across New York State. The program aims to speed up shovel-ready housing projects, expand the state’s housing supply, and bolster job creation in the construction sector.

The initiative — one of the cornerstones of Hochul’s 2025 State of the State housing agenda — comes amid growing pressure to address New York’s severe housing shortage, which has contributed to record rent increases and construction slowdowns in multiple regions.

The fund is supported by a $100 million state investment from the FY26 Enacted Budget, combined with $115 million in capital from private lenders. This public-private partnership is projected to unlock up to 1,800 new housing units statewide and generate an estimated $1 billion in total housing investment, according to the governor’s office.

“To combat the housing crisis in New York, we’re leaving no stone unturned,” said Governor Hochul. “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 will provide low-cost construction loans aimed at closing critical financing gaps that often delay or derail development of affordable and mixed-income projects. By leveraging public capital to attract private investment, the program complements the ongoing efforts of New York State Homes and Community Renewal (HCR) to expand affordable housing production.

Designed to be self-sustaining, the fund will recycle capital through loan repayments once projects convert to permanent financing, ensuring continuous reinvestment in future developments.

Four leading lending and community development institutions — the Community Preservation Corporation, Merchants Bank, Enterprise Community Partners, and the Local Initiatives Support Corporation (LISC) — have been selected as awardees to manage and distribute the funds. Together, they will provide $100 million for projects in New York City and $115 million for developments in other regions of the state.

“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,” said RuthAnne Visnauskas, commissioner of New York State Homes and Community Renewal. “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 announcement follows several other housing policy initiatives spearheaded by Hochul this year, including permitting reforms, incentives for transit-oriented development, and infrastructure support for local governments. Together, these efforts are part of a broader plan to create 800,000 new homes statewide over the next decade.

Economic experts say the fund could have a dual benefit — stimulating construction sector employment while helping alleviate the housing affordability crisis. Construction industry leaders have emphasized that mixed-income housing models not only expand access to affordable homes but also support inclusive community growth and long-term neighborhood stability.

If implemented successfully, the Housing Acceleration Fund could become a blueprint for sustainable housing finance, blending state-backed capital, private investment, and community-driven development to close critical funding gaps across New York’s housing market.

As demand continues to outpace supply, Hochul’s latest move signals a renewed urgency to modernize the housing pipeline, ensuring that every community — from upstate cities to downstate suburbs — can participate in the state’s economic and social revitalization.

Originally reported by Felix Day in CBS 6 Albany.