Addressing the Housing Crisis with $100M Fund

Governor Kathy Hochul today announced that applications are being accepted for the new $100 million Pro-housing Supply Fund, another tool in her focused efforts to support communities statewide in tackling the housing crisis. The fund will support certified Pro-Housing Communities with financing essential infrastructure projects, such as sewer, electrical and water system upgrades, that are needed to facilitate new housing developments. Investing in infrastructure is critical to expanding housing supply across New York State. Many communities face barriers to higher-density development due to outdated or insufficient infrastructure. By modernizing these essential services, Pro-Housing Communities can unlock new and more affordable housing opportunities, attract private investment, and create more vibrant and sustainable neighborhoods.

“New York has a housing affordability crisis — and the only way to solve it is to build more housing and offer support for our communities,” Governor Hochul said. “The Pro-Housing Supply Fund will aid communities by providing the funding needed to tackle this critical issue. By working with our local economic development partners at the local level, we will ensure that every region of the state is able to find real solutions to address the shortage, helping neighborhoods to thrive.”

Eligible Applicants

Pro-Housing certified cities, towns and villages can apply as well as county and municipally designated non-profit economic development organizations whose project is located within a Pro-Housing certified community. Eligible applicants can apply for grants between $2.5 million and $10 million for eligible projects. Applicants must complete and submit a Consolidated Funding Application for review by NYS and the Regional Economic Development Council for the region in which the proposed project is located. Applications must be submitted by Thursday, July 31 at 4 p.m.

Eligible Projects & Selection Criteria

Funding must be used for infrastructure projects that directly support the creation of new housing units. Eligible uses include the installation, extension or reconstruction of road, water, sewer, electrical or other utilities; design, permitting or engineering costs directly related to the infrastructure project (limited to 20 percent of total project cost); acquisition of machinery and equipment required for the ongoing operational use of the infrastructure project; site preparation or demolition directly related to the infrastructure project; and other eligible capital uses as determined by Empire State Development.

Projects will be evaluated based on the criteria outlined in the program guidelines which include, but are not limited to, a demonstrated commitment to directly support a housing project based on infrastructure improvements, number of housing units to be supported, the degree to which the project supports the creation of new housing in areas with a demonstrated workforce and/or affordable housing need, project readiness, the amount of leveraged funding, demonstrated local government support and alignment with regional priorities and Smart Growth principles.

Making Housing Affordable and Accessible

The $100 million Pro-Housing Supply Fund Initiative is among the more than $1.5 billion in new state funding for housing in the FY26 Enacted Budget and part of Governor Hochul's comprehensive strategy to tackle the housing crisis. Without resources, some communities may not have the ability to design and adopt pro-housing policies such as master plans, zoning text updates, and streamlined permitting procedures. To help ensure more localities that want to promote housing growth have the ability to do so, Governor Hochul also secured $5.25 million in new grant funding to provide technical assistance to communities seeking to foster housing growth and associated municipal development.

In July of 2023, Governor Hochul signed Executive Order 30 creating the Pro-Housing Communities Program, which recognizes, and rewards municipalities actively working to unlock their housing potential and encourages others to follow suit. In the FY25 Enacted Budget, Governor Hochul made the “Pro-Housing Community” designation a requirement for municipalities to access up to $650 million in State discretionary programs. To date, over 300 localities have been certified, with more than 470 submitting letters of intent from all corners of New York State.

Empire State Development President, CEO & Commissioner Hope Knight said, “The Pro-Housing Supply Fund will be instrumental in encouraging and supporting municipalities that are ready to actively address New York’s housing crisis and accelerate the construction of much-needed residential units. This fund is an example of the innovative opportunities and dynamic solutions that, under Governor Hochul’s leadership, will make a real difference in every region of the state.”

New York Secretary of State and REDC Chair Walter T. Mosley said, “Governor Hochul has made it abundantly clear that housing stands at the epicenter of successful and equitable economic development, community revitalization and affordability. With this $100 million commitment, communities will be equipped with the necessary infrastructure to meet her housing goals and facilitate the construction of much-needed homes for New Yorkers to live, raise families and create vibrant and diverse communities.”

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “This $100 million Pro-Housing Supply Fund is key to helping us reach our ambitious goals to provide more housing opportunity for all New Yorkers. Governor Hochul promised that the 2026 Budget would be a gamer-changer, and for housing policy, it certainly is another history-maker. We have more than 300 Pro-Housing Communities certified to date and it's clear that the program is shaping New York's future, town by town and city by city. Smart, purposeful housing growth aligned with local economic development goals will help us all flourish.”

About the Regional Economic Development Councils

The Regional Economic Development Council initiative is a key component of the State's approach to State investment and economic development. In 2011, 10 Regional Councils were established to develop long-term strategic plans for economic growth for their regions. The Councils are public-private partnerships made up of local experts and stakeholders from business, academia, local government, and non-governmental organizations. The Regional Councils have redefined the way New York invests in jobs and economic growth by putting in place a community-based, bottom-up approach and establishing a competitive process for State resources. Learn more at regionalcouncils.ny.gov.

About Empire State Development

Empire State Development is New York's chief economic development agency, and promotes business growth, job creation, and greater economic opportunity throughout the state. With offices in each of the state's 10 regions, ESD oversees the Regional Economic Development Councils, supports broadband equity through the ConnectALL office, and is growing the workforce of tomorrow through the Office of Strategic Workforce Development. The agency engages with emerging and next generation industries like clean energy and semiconductor manufacturing looking to grow in New York State, operates a network of assistance centers to help small businesses grow and succeed, and promotes the state’s world class tourism destinations through I LOVE NY. For more information, please visit esd.ny.gov, and connect with ESD on LinkedIn, Facebook and X.