New York Construction Report staff writer
Gov. Kathy Hochul on Thursday launched the Housing Central New York Fund, a $150 million public-private financing plan to accelerate housing development and keep costs down as the region prepares for historic growth driven by Micron’s $100 billion investment.
The fund, seeded with $30 million from Empire State Development (ESD) and $120 million from private partners, including Micron and local financial institutions, aims to support at least 2,500 new workforce housing units over its initial seven-year term. Eligible counties include Cayuga, Cortland, Madison, Oneida, Onondaga, and Oswego.
“The only way to solve the housing crisis is to build more housing,” Hochul said. “As Central New York prepares for unprecedented growth, the Housing Central New York Fund will help ensure families, workers, and communities can afford to live and grow where the opportunities are and build their future in New York State.”
The program is part of the state’s Community Investment Framework signed with Micron in 2022 and builds on Hochul’s strategy to pair major economic development projects with housing, infrastructure, and workforce initiatives. A 2023 housing study commissioned by ESD projected that Micron-driven growth will create demand for 30,000 additional housing units, requiring a tripling of current annual production.
High construction costs, rising interest rates, and financing gaps have threatened many planned projects, Hochul said, making coordinated public-private investment critical.
The new fund will provide subordinate financing at favorable rates to spur both rental and for-sale housing development, with the state’s involvement reducing risk for private lenders.
Empire State Development President and CEO Hope Knight said the fund shows how “smart public-private partnerships” can help workers and families afford to live near good-paying jobs while revitalizing the region.
Projects must meet affordability and land-use standards, including:
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Rental housing: at least 10% of units affordable to households at or below 80% of Area Median Income (AMI)
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For-sale housing: at least 10% of units affordable to households at or below 110% of AMI
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Smart-growth requirements: minimum density of 10 units per acre and minimum project size of 10 units
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Projects must be located in New York State Pro-Housing certified communities
The fund will be managed by the nonprofit Community Preservation Corporation, which will handle project sourcing, underwriting, loan deployment, and servicing. ESD will provide oversight, with quarterly reporting on fund performance. Proposals are now being accepted via HousingCNY.com, with funding determinations made on an ongoing basis.
