A key element of New York’s five-year housing strategy, Governor Hochul’s $270 million investment aims to create 1,800 new homes and enhance sustainability for a better future

New York – In a major move to combat the housing affordability crisis, Governor Kathy Hochul and Representative Paul Tonko today unveiled a substantial funding initiative exceeding $270 million. This investment, derived from the federal Low-Income Housing Tax Credit and additional subsidies, is earmarked to forge or refurbish over 1,800 affordable homes across New York State.

Spanning 28 different developments, this funding initiative is a key component of Governor Hochul’s ambitious $25 billion, five-year Housing Plan. Aiming to create or preserve 100,000 homes statewide, this plan is designed to bolster local economies, enhance public housing, and incorporate sustainable features that align with New York’s climate objectives.

“Solving New York’s housing crisis comes down to one simple strategy: building more housing,” Governor Hochul said. “These critical federal resources make it possible for us to provide New Yorkers with new opportunities to access affordable, modern, sustainable homes that also provide access to childcare, supportive services, and the amenities that individuals and families need to thrive.”

The allocation for these projects will be managed by New York State Homes and Community Renewal (HCR). It includes $61 million in Federal and State Low Income Housing Tax Credits and more than $200 million in subsidies. These funds, combined with private capital, are expected to generate over $1 billion in total investments, reflecting a significant economic uplift.

Governor Hochul is also a strong advocate for the expansion of the Low-Income Housing Tax Credit program through federal legislation. The proposed Affordable Housing Credit Improvement Act aims to significantly boost funding allocations, potentially facilitating the development of two million new affordable housing units nationwide over the next decade, with over 100,000 of those in New York.

Sustainability is a cornerstone of the awarded projects, which adhere to HCR’s rigorous standards. These standards promote healthier living environments and are in sync with the goals of the New York State Climate Leadership and Community Protection Act. Select projects will also benefit from the Clean Energy Initiative—a collaboration between HCR and the New York State Energy Research and Development Authority—to achieve enhanced sustainability and carbon reduction.

Further integrating technological advancements into housing, each awarded development will provide free broadband internet services to its residents. This initiative is part of Governor Hochul’s ConnectALL ambition, which has already made significant strides in bridging the digital divide by extending high-speed internet access to underserved communities.

The broader context of Governor Hochul’s housing strategy includes a series of innovative measures encapsulated in the FY25 Enacted Budget. These measures include new tax incentives to stimulate housing development in Upstate New York and New York City, a $500 million capital fund to erect up to 15,000 new homes on state-owned lands, and an additional $600 million to support various housing projects across the state. This comprehensive plan also introduces new protections for renters and homeowners, ensuring a more secure and affordable living environment for New Yorkers.

As New York continues to navigate the challenges of housing affordability, the initiatives introduced by Governor Hochul and supported by federal representatives like Congressman Tonko represent critical steps forward. Through substantial funding, legislative support, and strategic planning, the state aims to not only increase its housing stock but also enhance the quality of life for its residents.

The projects can be seen here.