Housing initiatives revealed in 2025 State of the State Address

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New York Construction Report staff writer

In her 2025 State of the State address, Gov. Kathy Hochul outlined a plan to invest $100 million into the Pro-Housing Community Program, creating the state’s first revolving loan fund for mixed-income rental development outside New York City, and passed legislation to curb rent-price-fixing practices by landlords.

“The affordability crisis in New York is driven by skyrocketing rent and mortgage costs. After last year’s landmark housing deal, we’re doubling down with targeted measures to ensure more New Yorkers can own or rent a home without breaking the bank,” Hochul said.

Highlighting “wins” for affordable housing in 2024 thanks for incentives for new construction, Hochul says her historic $25 billion, five-year plan to create or preserve 100,000 affordable homes statewide is already ahead of schedule.

A key initiative in the 2025 proposal is $1 billion in support for New York City’s “City of Yes for Housing Opportunity,” the largest pro-housing rezoning effort in the city’s history.

A new $100 million Pro-Housing Supply Fund will assist municipalities that have received the state’s “Pro-Housing Community” designation, supporting infrastructure projects like sewer and water upgrades to enable housing development. Hochul created the Pro-Housing Community Program in 2023 to encourage municipalities to adopt policies that unlock housing potential.

Communities lacking resources to implement pro-housing policies will be able to access grant funding to assist localities in developing zoning changes, streamlined permitting, and master plans designed to boost housing development.

In an effort to accelerate housing construction, Hochul proposed regulatory changes to simplify the environmental review process for smaller housing developments under 10,000 square feet.

To bridge the financing gap for mixed-income rental developments, particularly in upstate New York, the state will launch its first revolving loan fund to provide affordable and flexible financing for developments that are often permit-ready but struggle to secure financing.

As a result, municipalities will have more authority to acquire and redevelop vacant and abandoned properties, including tax exemptions to incentivize redevelopment into affordable housing units.

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