New York Construction Report staff writer
A Housing Acceleration Fund was launched this week, a $215 million first-of-its-kind program aimed at speeding up the construction of shovel-ready mixed-income housing projects across New York State. The initiative, a centerpiece of the Governor’s 2025 State of the State housing proposals, addresses a critical barrier for developers: projects that are permit-ready but unable to secure financing.
“To combat the housing crisis in New York, we’re leaving no stone unturned,” Governor Kathy Hochul said. “This innovative loan program is a powerful tool to jumpstart mixed-income housing construction across the state and create more opportunities for families, seniors, and young adults.”
The Fund is designed to provide low-cost construction loans to fill financing gaps, leveraging public capital to attract private investment in mixed-income multifamily developments. Catalyzed by the Governor’s $100 million investment from the FY26 Enacted Budget, the Fund is matched with $115 million from participating lenders, bringing the total program value to $215 million.
Awardees announced today include:
- Community Preservation Corporation: $45.5 million
- Merchants Bank: $42 million
- Enterprise Community Partners: $7.5 million
- Local Initiatives Support Corporation: $5 million
Half of the state’s $100 million investment is allocated for projects in New York City, with the remainder distributed across the rest of the state. Combined with participating lenders’ contributions, projects in NYC will access $100 million, while projects outside the city will receive $115 million.
The program is expected to generate approximately 1,800 new homes statewide and catalyze more than $1 billion in new housing investment. Designed as a revolving loan fund, the program will sustain itself over time through loan repayments once projects convert to permanent financing.
Administered by New York State Homes and Community Renewal (HCR), the Housing Acceleration Fund complements existing programs, including tax-exempt bonds and low-income housing tax credits, providing additional resources to accelerate rental housing production across New York.
To learn more about the New York State Housing Acceleration Fund program, visit the HCR website.
