Governor Kathy Hochul has announced the launch of the Housing Acceleration Fund, a $215 million program aimed at speeding up construction of mixed-income residential projects across New York State. The initiative, introduced as part of Hochul’s 2025 State of the State agenda, seeks to address housing shortages and support job growth by providing financial tools for communities that lack resources to move permit-ready developments forward.
The fund is supported by a $100 million investment from the state’s FY26 Enacted Budget and an additional $115 million from participating lenders. According to the Governor’s office, this funding will help bring approximately 1,800 new homes statewide.
“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.”
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). Half of the state’s investment is earmarked for projects within New York City, with the remainder allocated throughout other regions.
The Housing Acceleration Fund will be administered by New York State Homes and Community Renewal (HCR) and will provide low-cost construction loans designed to fill financing gaps in mixed-income housing developments. The revolving loan model aims to leverage public capital with private investment and is expected to generate over $1 billion in new housing investment statewide.
RuthAnne Visnauskas, Commissioner of HCR, 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, commented: “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 said: “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 added: “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 noted his support during budget negotiations which doubled funding for this initiative: “Developing more affordable housing and preserving and upgrading existing homes are essential parts of our strategy – along with tenant and homeowner protections – to address the crises of inadequate housing supply, unaffordability, evictions, and homelessness. So I was very pleased to advocate for this funding – which we doubled to $100 million during the course of budget negotiations. The Housing Acceleration Fund will help secure and accelerate much housing construction that we urgently need. I thank Governor Kathy Hochul and Commissioner RuthAnne Visnauskas for their leadership in backing this program and promptly making these funds available. And I congratulate and thank the four well qualified administrators whom I’m confident will deliver on the promise of this program.”
Senator Rachel May described it as a targeted investment addressing local needs: “The Housing Acceleration Fund is a smart, targeted investment in New York’s future. Communities across the state want to build more housing but too often good projects are held back by gaps in financing…the need for new affordable…housing is especially acute…and [this] investment will help meet that demand while creating more vibrant inclusive communities.”
Assemblymember Linda B. Rosenthal emphasized how rising construction costs have hampered progress on rental units: “The Housing Acceleration Fund is a welcome tool…With Governor Hochul’s welcome announcement…we can jumpstart construction on these projects…”
Assemblymember Micah Lasher highlighted legislative efforts behind such initiatives: “It is outstanding that Governor Hochul…are announcing a major public revolving loan fund…By leveraging public dollars…this fund will create thousands of new homes…”
Governor Hochul’s broader approach includes significant investments outlined in recent budgets—over $1.5 billion dedicated toward increasing affordability through tax incentives; voucher programs; renter protections; preservation goals; plus electrification efforts as part of a five-year plan aiming at 100k affordable units statewide.
Additionally,more than 370 localities have received Pro-Housing certification under strengthened provisions allowing exclusive access up to $750 million in discretionary state funding.
