CAP Housing Investment Fund

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Objective

The creation of the Downtown Albany Strategy (DTAS) serves as the implementation roadmap for the CAP initiative.  The DTAS outlines opportunities to increase the number of residents and visitors downtown, which will generate the activity, investment, and economic momentum needed to support a vibrant and sustainable city center.  

The $40 million Housing Investment Fund will focus on new housing that supports more downtown residents,  generating tax revenue to support city services, fuel economic activity at downtown businesses, and contribute to an increased sense of vibrancy.

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Overview

As part of the Housing Investment Fund, Empire State Development (ESD) will invest up to $40 million into grants for housing creation projects. The creation of more housing will help spur private-sector investment, put more sites into taxable and productive use, and address the city's housing shortage.  

CAP investments are funded through capital dollars, which may only be used for 'brick and mortar' projects, such as new buildings or equipment. By focusing on building these long-term assets, the CAP initiative ensures the funding creates a lasting foundation for the community’s continued growth and revitalization.  

Applicants are strongly encouraged to review the Downtown Albany Strategy and reach out to the ESD Capital Region office to discuss their project prior to submitting an application.

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Eligibility

Eligible Applicants 

  • For-Profit businesses and/or developers; or, 
  • Not-for-Profit Entities. 

Eligible Projects Must 

  • Occur in the City of Albany, within a one-mile radius of the State Capitol; 
  • Include a minimum of 60% non-ESD funding (i.e., ESD will provide a maximum of 40% of the project cost). Projects that include a lower percentage of ESD-funding will be scored more favorably;  
  • Involve the applicant either having control of the site or having written consent from the ownership entity; 
  • Involve only capital-eligible expenses, such as permanent construction, structural renovations, and long-term equipment. Operating expenses, such as supplies, salaries or administrative costs, are not eligible for grant funding; and,  
  • Generate at least two net new units of housing.   

Eligible Costs 

  • New construction, renovation or leasehold improvements; 
  • Acquisition of real property and capital-eligible site preparation and development expenses; 
  • Machinery and/or equipment;  
  • Demolition and environmental remediation; 
  • Note: The demolition of existing housing units to construct new units is only an allowable cost if the project results in a net gain of housing units.   
  • Furniture and fixtures; 
  • Soft costs of up to twenty-five percent (25%) of costs related to the eligible capital expenditures; and  
  • Other costs and expenditures deemed eligible by ESD. 

Example Projects  

  • The conversion of an existing commercial office building into a mixed-use building with ground-floor commercial space and housing units on the upper floors; 
  • The construction of a new residential or mixed-use building; and, 
  • The addition of housing units to an existing residential or mixed-use building.  
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Project Selection Criteria

Housing projects will be evaluated based on the following criteria: 

  • Number of housing units created; 
  • Leverage of private investment; 
  • Projects should have a clear path to leveraging private, philanthropic, or other public funding, maximizing the impact of CAP resources. 
  • Projects that include a lower percentage of ESD-funding will be scored more favorably. 
  • Alignment with priorities established in the Downtown Albany Strategy (DTAS) Report; and, 
  • Demonstration of long-term operational and financial viability to ensure that CAP-funded investments remain assets to the city well beyond initial implementation.