State Launches $150 Million Housing Central New York Fund to Spur Housing Development

A new Housing Central New Fund was announced by Governor Hochul Thursday morning in the amount of $150 million. Funds come from both public and private financing initiatives that are designed to spur housing development and keep costs down in the Central New York region. The fund was announced as the CNY region prepares for the major economic growth it expects with Micron’s $100 billion investment in Clay.

According to the Governor’s Office, Empire State Development is seeding the revolving loan fund with $30 million, with an additional $120 million from a range of partners — including Micron, local financial institutions, and other funders — with the goal of supporting the development of at least 2,500 new workforce housing units over the fund’s initial seven-year term.

Cortland County is one of six counties eligible for participation in the fund. Others include Cayuga, Madison, Oneida, Onondaga, and Oswego.

“The only way to solve the housing crisis is to build more housing,” Governor Hochul said. “As Central New York prepares for unprecedented growth, the Housing Central New York Fund will help to ensure families, workers and communities can afford to live and grow where the opportunities are and build their future in New York State.”

The region is expected to need 30,000 additional housing units, according to a 2023 study by HR&A. As a result, development for housing will have to triple its current annual production. Hochul says high interest rates, rising construction costs, and financing gaps have put many planned projects at risk, making coordinated public-private investment essential to keeping housing costs affordable and development moving forward.

The program announced by the state is part of its commitment through the Community Investment Framework signed with Micron four years ago to jointly invest in Central New York as the company plans to build up to four megafabs bringing 9,000 jobs from Micron and another 40,000 from indirect, supplier, and construction jobs.

Governor Hochul says the new initiative will provide subordinate financing at more advantageous rates to spur often costly housing construction of both rental and for-sale housing.

Projects supported must meet clear land-use standards and affordability goals, which is the primary purpose of the fund, including:

• Rental housing: At least 10 percent of units affordable to households earning at or below 80 percent of Area Median Income
• For-sale housing: At least 10 percent of units affordable to households earning at or below 110 percent of Area Median Income
• Smart-growth requirements: Minimum density of 10 units per acre and a minimum project size of 10 units
• Pro-Housing Communities: Projects must be located in a New York State Pro-Housing certified community

In Cortland County, the City of Cortland, Villages of Marathon, and McGraw, and the Town of Cortlandville are certified Pro-Housing Communities, according to New York State Homes and Community Renewal.

The Community Preservation Corporation will manage all aspects of the fund, including project sourcing, underwriting, loan deployment, and servicing. Empire State Development will provide oversight with approved underwriting guidelines and quarterly performance reporting, according to the Governor’s Office.

“NBT Bank is proud to join ESD, Community Preservation Corporation, and CenterState in support of the Housing Central New York Fund. With our 170-year history of investment in Central New York and long-standing involvement in the semiconductor and advanced manufacturing ecosystem in New York State, NBT fully understands the critical role that workforce housing will play in the program’s success. Just as Micron will be transformational to the Central New York economy, the Housing Central New York Fund will be transformational to Micron.” Said NBT Bank President of Central New York and Pennsylvania David Kavney.