May 2025

The Homes and Community Renewal Connection

Newly Enacted Budget A Win for Housing!

Governor Hochul and the Legislature recently approved the Fiscal Year 2026 State Budget and, with it, a host of measures that will bolster our efforts at combatting New York’s housing crisis.

Throughout the budget process, the Governor prioritized making the State more affordable for individuals and families. The Budget includes a $1 billion tax cut for middle-class and low-income New Yorkers, a significant increase to the Child Tax Credit, expanded access to childcare, and new funding to ensure free breakfast and lunch for every K-12 student in New York.

The Enacted Budget also contains more than $1.5 billion in new State funding and a host of new programs and initiatives that will make owning and renting a home more affordable. This includes a new voucher program to help families at risk of homelessness, money to fund local infrastructure projects that are necessary to create new housing, and several measures to make homeownership a reality for more New Yorkers.

Below are top-level highlights and key initiatives. You can read more on HCR’s website

Strengthening Investment in Communities

$1 billion for the “City of Yes”

New York State is investing $1 billion to support affordable housing in New York City’s $5 billion “City of Yes” plan, aimed at building 80,000 new homes over the next 15 years.

Mixed-Income Revolving Loan Fund

A $100 million fund will address financing gaps for upstate and NYC affordable housing projects, providing lower-cost capital.

Doubling Low-Income Housing Credits

Doubling the New York State Low-Income Housing Tax Credit will generate $210 million in private investment annually for affordable housing.

Pro-Housing Communities Supply Fund

A $100 million fund will help municipalities unlock housing potential by supporting infrastructure improvements like sewer and water upgrades.

Protecting Housing Affordability

Housing Access Vouchers: $50 million pilot program to help homeless families and those at risk of losing housing.

Mitchell-Lama Savings: Reducing shelter rent taxes for Mitchell-Lama developments to preserve affordable housing.

Security Deposit Protections: Expanding protections for rent-regulated tenants to ensure fair security deposit returns.

Boosting Homeownership

Disincentivizing Institutional Investors: Legislation will curb large entities from purchasing single- and two-family homes in masse.

Starter Home Innovation: $50 million for innovative homebuilding approaches to boost starter home construction.

Homeowner Protection Program: $40 million to help at-risk homeowners avoid foreclosure.

Affordable Homebuyer Tax Incentive: New property tax incentive to help low- and moderate-income homebuyers.

Additional Housing Funding

$225 million for NYCHA improvements

$110 million for Mitchell-Lama upgrades

$75 million for public housing improvements outside NYC

$50 million for rapid response home repair programs and more

$1.525 billion in new capital funding to support housing across New York.

Development Highlights

The Rise Brings 71 Affordable Homes to Brownsville

Commissioner Visnauskas Celebrated the completion of The Rise, a $50 million affordable housing development in Brownsville, Brooklyn. The seven-story building includes 71 apartments, with 47 supportive units for formerly incarcerated individuals and their families, along with on-site services, a community hub, and a rooftop farm.

62 Main in Tarrytown Transforms YMCA into Affordable Housing

The 62 Main project in Tarrytown, a $54 million development, has transformed the former YMCA into 108 affordable apartments, with 88 units reserved for seniors. The energy-efficient, fully-electric units include solar panels and geothermal heating.

Maple Commons Opens in Croton-on-Hudson

Governor Hochul Celebrated the completion of Maple Commons, a new $18 million affordable housing development in Croton-on-Hudson. The 33 all-electric homes are affordable to residents earning up to 80% of the Area Median Income.

98 Affordable Homes Break Ground in Saratoga Springs

Springs West Apartments, a 98-unit affordable housing development, has broken ground in Saratoga Springs. The new energy-efficient complex includes six buildings and will be operated by the Saratoga Springs Housing Authority.

Station Plaza in Ossining Offers 108 Affordable Homes

Governor Kathy Hochul announced the start of Station Plaza, a $96 million affordable housing development in Ossining, Westchester. The eight-story building will provide 108 affordable apartments for households earning up to 80% of the Area Median Income, along with community space, retail, and public amenities.

Construction Begins on Town and Country Apartments in Binghamton

Construction has begun on the Town and Country Apartments, a 22-building, garden-style complex that will provide 256 affordable homes. This development is part of a larger effort to create more than 1,260 affordable homes in Broome County.

Groundbreaking for 66 New Senior Affordable Homes on Long Island

Construction has started at Medford Gardens, a $40 million, 66-unit affordable senior housing development in Medford, Suffolk County. The fully-electric complex will feature supportive apartments for seniors in need of services, including health and crisis intervention.

101 Affordable Homes Under Construction in Wayne County

Construction is underway at Coventry Commons, a $59 million project converting the historic Reed Manufacturing Company site in Newark, Wayne County, into 101 affordable apartments. The development will revitalize two long-vacant buildings and provide homes for households earning up to 80% of the Area Median Income.

Governor Hochul Awards $270M to Expand Affordable Housing

and Support Local Economies

Governor Kathy Hochul announced $270 million in funding for 28 affordable housing projects across New York State. The funding will support the creation or preservation of 1,800 affordable homes, including supportive housing for vulnerable populations. These projects will feature energy-efficient upgrades, improve public housing, and promote local economic development.

The funding is part of Governor Hochul’s $25 billion, five-year housing plan to build or preserve 100,000 affordable homes statewide. The governor also supports federal legislation to expand the Low-Income Housing Tax Credit program, which could finance the development of 2 million affordable homes nationwide over the next decade.

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