Governor Hochul says the fund will help jumpstart the construction of mixed-income housing.

ALBANY, N.Y. — New York State has officially launched the Housing Acceleration Fund.

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Governor Kathy Hochul says the $215 million program is the first of its kind and is intended to speed up construction of a shovel-ready mixed-income residential projects. New York invested $100 million into the fund, which was matched with $115 million from awarded participating lenders. 

Governor Hochul says the fund will provide low-cost, construction loans to help fill financing gaps in constructing mixed-income housing developments.

Community Preservation Corporation: $45.5 millionMerchants Bank: $42 millionEnterprise Community Partners: $7.5 millionLocal Initiatives Support Corporation: $5 million

“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.”

Governor Hochul says the Housing Acceleration Fund awards are expected to create around 1,800 new homes and generate over $1 billion in new housing investment across the state.

Half of New York’s investment, or $50 million, will be allocated to projects in New York City while the other half will go to the rest of the state. The remaining $115 million will be split, bringing NYC’s total to $100 million and $150 million for the rest.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “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.”