New York State Homes and Community Renewal has awarded $16.2 million to 11 non-profit organizations and local governments across several regions, including the Finger Lakes, Mid-Hudson, Mohawk Valley, North Country, and Western New York. The funding will be used to convert vacant and uninhabitable apartments into 230 affordable homes.
The funds are part of the Vacant Rental Program (VRP), which was introduced in the FY25 Enacted Budget by Governor Kathy Hochul. The program aims to support buildings with up to five vacant or distressed rental units outside of New York City, making them available as affordable housing for low- and moderate-income tenants. This announcement follows an earlier round in 2024 that allocated $40 million to create over 600 affordable homes.
Governor Hochul stated: “The Vacant Rental Program has invested more than $56 million to put distressed properties back into the affordable housing market while giving more individuals and families across the state a safe, modern place to call home. We need to attack the housing crisis from every angle and giving small property owners the extra help they need to make it happen has been an integral part of the puzzle.”
The VRP is administered by HCR, which selected awardees through a competitive process. Organizations receiving funding include Better Community Neighborhoods, Inc., Clayton Improvement Association, Franklin County Community Housing Council, Inc., M-ARK Project, Inc., Neighbors of Watertown, Inc., Otsego Rural Housing Assistance, Inc., Steuben Churchpeople Against Poverty DBA Arbor Housing and Development, Utica Neighborhood Housing Service Inc., as well as programs in Auburn city and Genesee and Livingston counties.
Under VRP guidelines, property owners can receive up to $50,000 per unit for households earning up to 80 percent of Area Median Income (AMI) or up to $75,000 for those earning up to 60 percent AMI. Apartments may be located in residential or mixed-use buildings. Eligible costs include health and safety improvements, code violation corrections, accessibility upgrades, environmental remediation efforts, and general repairs needed for habitability.
Local governments and non-profits are eligible for grants of up to $2.5 million each; these groups then distribute funds directly to property owners who apply through their programs.
RuthAnne Visnauskas, Commissioner of New York State Homes and Community Renewal said: “Thanks to Governor Hochul, we have developed creative ways to increase New York’s affordable housing supply while refurbishing distressed properties. The need for affordable housing exists across New York, and the Vacant Rental Program is helping create more than 830 new affordable homes for individuals and families that otherwise might not have happened. Thank you to participating non-profits and local governments, as well as small property owners who are essential partners in our mission to provide safe stable affordable housing right in residents’ own communities.”
A third application window for VRP closes on January 15 or when funds run out. More information about applying can be found at https://hcr.ny.gov/vrp.
Governor Hochul’s broader housing agenda includes recent budgets that have increased funding for new construction incentives as well as tenant protections statewide. Over $1.5 billion in new state funding was included in the FY26 budget along with initiatives like a pilot voucher program aimed at improving affordability for renters and buyers alike. These measures add onto a five-year plan—first outlined in the FY23 budget—to create or preserve 100,000 affordable homes throughout New York State; nearly 70,000 units have been created or preserved so far.
Additionally, reforms such as strengthening the Pro-Housing Community Program allow certified municipalities exclusive access to discretionary state funding—currently over 380 communities hold this certification.
