FY26 Budget Will Provide Over $500 Million in New State Capital for Housing To Uplift Communities, Investing $100 Million for Pro Housing Communities, $50 Million for Mixed Income Development, Creates Voucher Program Pilot for Families and Households to Address Homelessness

Budget Agreement Includes Comprehensive Strategy To Protect the American Dream of Homeownership

Disincentivizes Institutional Investors from Buying Up Single- and -Two- Family Homes Across the State

$50 Million to Build Starter Homes, $40 Million To Protect Homeowners from Foreclosure, $50 Million to Expand Homeowner Storm Resiliency and Recovery Programs

Unlocks Tax Credits and Incentives To Build More Affordable Housing Opportunities

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Governor Kathy Hochul today secured new proposals to make homeownership more affordable for families statewide. As part of the FY 2026 Enacted Budget, Governor Hochul announced over $500 million in new state funding for housing that will help communities like Syracuse including investing $100 million for Pro-Housing Communities to fund critical infrastructure projects to support housing development, $50 million to promote mixed income housing development in Upstate communities, $50 million for the first year of the Housing Access Voucher Program to address households that are homelessness or at risk of imminent homelessness, and $50 million for building more affordable starter homes, among other housing initiatives. The FY 2026 Budget complements the Governor's historic housing package passed last year and her continued efforts to create or preserve 100,000 affordable homes in five years.

“A safe and affordable home is a basic human right, and the only way to help New Yorkers achieve the American dream of homeownership is to build more housing and support our local communities,” Governor Hochul said. “My FY 2026 Budget focuses on making the state more affordable and that includes making it easier to purchase a home and investing more in our Pro-Housing Communities, like Syracuse, so hard working New Yorkers have more opportunities to remain in the communities they love.”

Onondaga County is the epicenter of the semiconductor super highway that runs through Upstate New York, spurred by Micron’s historic choice of Clay as the location of its mega fab, bringing with it more than 50,000 jobs to the region over the next two decades. Micron’s investment represents an incredible opportunity to change the trajectory of the regional and upstate economy – and for the first time in decades, Upstate New York will see sustained economic and population growth because of this investment. It has been estimated that more than 30,000 housing units will be needed over the coming decade in Central New York above what the market would normally demand because of that growth.

Central New York is not alone. GlobalFoundries in the Capital Region and semiconductor supply chain companies such as Edwards Vacuum, TTM, Menlo Micro have also chosen New York State to grow and create thousands of jobs. Other companies such as Chobani in the Mohawk Valley and fairlife in the Finger Lakes will also create more than 1,200 jobs. Access to housing is a crucial component of their success.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “All New Yorkers deserve a home they can afford to call their own. That's why the State is committed to using every tool in our toolbox as we fight the housing crisis. These investments including a voucher pilot program, $500 million in state capital for housing, and tax incentives will improve affordability. New policies, such as disincentivizing institutional investors, will enhance protections for homebuyers like those in Syracuse and across the state. Thank you to Governor Hochul for her bold leadership on affordable housing.”

Create $100 Million New York State Pro-Housing Supply Fund

Governor Hochul signed Executive Order 30 in July 2023 creating the Pro-Housing Community Program, which recognizes and rewards municipalities actively working to unlock their housing potential and encourages others to follow suit. In the State Fiscal Year 2025 Enacted Budget, Governor Hochul made the “Pro-Housing Community” designation a requirement for accessing up to $650 million in State discretionary programs. To date, nearly 470 localities have submitted letters of intent, and 300 municipalities from all corners of New York State have received Pro Housing certification. To further support localities that are doing their part to address the housing crisis, Governor Hochul is creating a $100 million Pro-Housing Supply fund for certified Pro-Housing Communities to assist with critical infrastructure projects necessary to create new housing, such as sewer and water infrastructure upgrades.

Provide Communities Technical Assistance to Become Pro-Housing

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 will provide $5.25 million in new grant funding to offer technical assistance to communities seeking to foster housing growth and associated municipal development.

Launch New York State’s First Mixed-Income Revolving Loan Fund

With major forthcoming economic investments in Upstate New York, such as Micron’s $100 billion investment in Clay, the state continues to need an all-of-the-above approach to the housing supply to address acute housing needs and accommodate job growth. Too often, however, Upstate communities do not have the tools to create mixed income rental housing, leaving many developments permit-ready but unable to secure financing. To bridge this gap and unlock more housing, Governor Hochul is launching the State’s first revolving loan fund to spur mixed-income rental development outside New York City. With a $50 million State investment, the fund will fill construction financing gaps by providing a lower-cost and more flexible form of capital than is generally available in market financing. The funding will revolve and self-sustain over time through repayments once projects have converted to permanent financing after construction.

Housing Access Voucher Program Pilot

As part of the FY26 Enacted Budget, Governor Hochul is investing $50 million for the first year of a four-year pilot program for state-funded vouchers for homeless families or families at imminent risk of losing their housing. Vouchers would be available to households making 50 percent of area median income. HCR will administer the program through local partners outside of New York City, with the NYC Housing Preservation and Development (HPD) and/or the New York City Housing Authority (NYCHA) administering the program within New York City. The vouchers will be a critical new tool to help New Yorkers escape or evade homelessness and housing insecurity.

Provide Starter Home Innovation Funding

Oftentimes, homes being built by the market today are larger and therefore less affordable than a traditional starter home. An undersupply of smaller, affordable homes limits mobility within the market, preventing young families from becoming homeowners and older New Yorkers from downsizing. Governor Hochul secured $50 million in capital funding to incentivize the building of more starter homes, including innovative approaches to homebuilding such as the use of factory-built and modular development.

$40 Million to Support the Homeowner Protection Program (HOPP)

The Homeowner Protection Program is a state-wide network of housing counseling and legal services organizations serving every county in New York. The network provides critical services to at-risk homeowners struggling to maintain their housing and avoid foreclosure. HOPP is also a front line defense in gentrifying neighborhoods helping to prevent fraud and deed theft for vulnerable homeowners. This funding will ensure that this network can continue to serve thousands of homeowners, preserving millions of dollars in equity and stabilizing communities.

Expand and Strengthen the Resilient and Ready Programs

Severe weather events are leaving New York homeowners in need of urgent repairs and long-term resilience measures. Governor Hochul secured $50 million in new funding for the Rapid Response Home Repair Program and Resilient Retrofits Program, which have provided vital assistance, helping over 1,300 homeowners to date recover and prepare for future disasters.

Disincentivizing Institutional Investors from Buying Up One- and Two-Family Homes

Nationally, private equity firms own more than 500,000 homes. According to some estimates, private equity firms are expected to own up to 40 percent of the single-family rental market by 2030. When large investors hold a disproportionate share of a local housing market it removes opportunities for homeownership, exacerbating the existing scarcity and driving up prices for remaining homes on the market. These consequences are felt most intensely by first-time and low- or moderate-income homebuyers.

To help level the playing field and increase the opportunities for everyday individuals and families to purchase a home, Governor Hochul signed legislation to disincentivize large investment entities who own 10+ single- and two-family homes and act as a fiduciary for at least $30 million in assets under management from buying single- and two-family homes en masse, and will require a 90-day waiting period for institutional investors to make an offer on one- or two-family homes.

The prohibition would also apply to an entity that receives funding from a covered institutional investor, other than in the form of a standard mortgage. Nonprofits, land banks, community land trusts, and foreclosure sales would be exempted. With the New York State Attorney General’s enforcement, covered entities that violate the waiting period would be subject to $250,000 penalties, and to $10,000 penalties for failing to provide required notices.

Additionally, Governor Hochul signed legislation to prohibit institutional investors from claiming depreciation tax deductions for single- and two-family homes, or claiming interest deductions with respect to such homes, to disincentivize their accumulation of single- and two-family homes. The legislation also requires the New York Department of State (DOS) to provide notice when establishing a “cease and desist zone” in which homeowners who opt into coverage are prohibited from being solicited to sell their homes. The notice requirements will require information about the zone to be posted on DOS’ website when a zone is established and annually included in a local newspaper within the area of the zone.

A safe and affordable home is a basic human right, and the only way to help New Yorkers achieve the American dream of homeownership is to build more housing and support our local communities.”

Governor Hochul

Strengthen Laws and Policies To Combat Home Appraisal Discrimination

For many New Yorkers, their largest investment and most valuable asset is their home. Homes provide families with a safe place to live and an opportunity to build generational wealth. For too long, pervasive appraisal bias throughout the housing industry has unjustly stripped families of color of this opportunity, widening racial homeownership and wealth gaps. Governor Hochul secured agreement on legislation that will make it a violation of the State's Human Rights Law to discriminate when providing real estate appraisals or in making such services available. The law will further enable DOS to fine appraisers for violations, in addition to other existing remedies, with half of those fines going to a fund to support fair housing enforcement. Governor Hochul also will be taking other administrative actions to diversify the appraiser workforce.

Create an Affordable Homebuyer Tax Incentive

Even when homes are developed for the express purpose of being sold to low- and moderate-income homebuyers, local property tax assessments value the homes at fair market value, presenting challenges to creating homes these homebuyers can afford to purchase. The Governor secured an affordable homebuyer property tax incentive at local opt-in for homes built with assistance from governmental entities, nonprofits, land banks, or community land trusts, and sold to low- and moderate-income homebuyers. This will aid such homebuyers by making their dream of homeownership more attainable by bringing down costs and increasing the supply of these homes.

Double New York State Low Income Housing Credits Annually

Modeled after the federal Low Income Housing Tax Credit Program, the New York State Low Income Housing Tax Credit Program (SLIHC) was signed into law in 2000 and has been critical to supporting the development of housing for low-and middle-income households. Governor Hochul is building on this success by including legislation in the Enacted Budget to double the amount of the tax credits available each year through the SLIHC program, making it the largest state low-income housing tax credit program in America. This action alone will generate upwards of $210 million in private investment in affordable housing per year.

Unlock Historic Tax Credits by Decoupling and Expanding Eligibility

Currently, New York State law requires Federal and State Historic Tax credits to be coupled together to the same investor and be available only in certain census tracts. These factors depress the economic value of both tax credits and needlessly turn investment away from housing projects, a problem felt especially acutely in upstate New York communities. Governor Hochul signed legislation that can unlock the maximum value of the tax credits by allowing for transferring the State credit to a different entity than the federal credit, and by eliminating the census tract eligibility requirement for affordable housing.

Empower Communities to Redevelop Vacant Properties into Housing

Many municipalities struggle with vacant and abandoned buildings that are in a significant state of disrepair in neighborhoods that lack the local economic conditions necessary to incentivize redevelopment by the private sector. Consequently, the investment required to redevelop these properties can exceed their value and the resulting funding gap prevents the property from being rehabilitated. To help communities fight back against vacant properties and revitalize neighborhoods, Governor Hochul secured agreement to authorize localities across the state to adopt a tax exemption to incentivize redevelopment of these properties into affordable homes.

Governor Hochul’s Housing Agenda

Governor Hochul is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives for Upstate communities, new incentives and relief from certain state-imposed restrictions to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on state-owned property, an additional $600 million in funding to support a variety of housing developments statewide and new protections for renters and homeowners. In addition, as part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. Nearly 60,000 homes have been created or preserved to date.

The FY25 Enacted Budget also strengthened the Pro-Housing Community Program which the Governor launched in 2023. Pro-Housing certification is now a requirement for localities to access up to $650 million in discretionary funding. Currently, more than 300 communities have been certified, including the city of Syracuse.