Governor Kathy Hochul has announced the launch of the Housing Acceleration Fund, a $215 million program aimed at speeding up the construction of mixed-income residential projects across New York State. The initiative, part of Hochul’s 2025 State of the State proposals, is designed to address the state’s housing shortage and support job growth by providing financing for permit-ready developments that lack funding.
“To combat the housing crisis in New York, we’re leaving no stone unturned,” Governor Hochul said. “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 fund consists of $100 million from the FY26 Enacted Budget and $115 million from participating lenders. Four organizations have been selected as awardees: Community Preservation Corporation ($45.5 million), Merchants Bank ($42 million), Enterprise Community Partners ($7.5 million), and Local Initiatives Support Corporation ($5 million). The awards are expected to result in about 1,800 new homes statewide.
Half of the state’s investment will go toward projects within New York City, with the other half allocated elsewhere in the state. Awardees will provide additional capital, bringing total funding for New York City projects to $100 million and for projects outside the city to $115 million.
Administered by New York State Homes and Community Renewal (HCR), the fund provides low-cost construction loans intended to fill financing gaps in mixed-income developments. It uses public funds to leverage private investment and is estimated to generate over $1 billion in new housing investment throughout New York State.
The revolving loan model complements existing HCR programs and aims to accelerate rental housing production beyond what is possible with traditional affordable housing resources such as tax-exempt bonds or low-income housing tax credits. The program is designed to be self-sustaining through loan repayments after project completion.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas stated, “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 said, “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, President of Enterprise’s Capital Division 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 stated: “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 remarked: “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 of inadequate supply… The Housing Acceleration Fund will help secure… much needed construction… I thank Governor Kathy Hochul…”
State Senator Rachel May said: “The Housing Acceleration Fund is a smart…investment…too often good projects are held back by gaps in financing….the need for new…housing is especially acute…the State’s investment will help meet that demand while creating more vibrant…communities.”
Assemblymember Linda B. Rosenthal noted: “The Housing Acceleration Fund is a welcome tool … With Governor Hochul’s welcome announcement … we can jumpstart construction on these projects … ensuring that every New Yorker has a safe … place …”
Assemblymember Micah Lasher added: “It is outstanding that Governor Hochul …are announcing a major public revolving loan fund … By leveraging public dollars …this fund will create thousands …and generate over a billion dollars … When we think creatively …we can deliver real results….”
Governor Hochul’s broader agenda includes increased tax incentives; over $1.5 billion in additional state funding; policies aimed at improving affordability; a five-year plan targeting 100,000 affordable homes (including support services); electrification goals; as well as expanded access through programs like Pro-Housing Community Program—currently benefiting over 370 certified localities.
