Mid-Hudson Momentum Fund

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Objective

The $150 million Mid-Hudson Momentum Fund (MHMF) program invests in mixed-use housing and infrastructure projects throughout the Mid-Hudson Region, specifically to address strain caused by the population increase exacerbated by COVID. The worsening housing shortage and increased demands placed on existing aging infrastructure systems have made it more difficult to accommodate this surge of new residents. Investment is needed to provide opportunities for both new and existing populations within the Mid-Hudson Region. 

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Overview

The Mid-Hudson Region has become a top destination for both tourists and new permanent residents, with over 33,000 new residents moving to the region over the past two years alone. With regional housing stock availability being at less than 1% last year, there is a pressing need for new development to support the influx of residents. 

 The Program will focus on mixed-use housing and infrastructure projects that will have lasting impacts in the Mid-Hudson Region and that are consistent with the strategic goals and priorities of the Mid-Hudson Regional Economic Development Council’s strategic plan. This includes projects that 1) have garnered community support, 2) will result in increased affordable housing, 3) leverage non-State investment, 4) are financially sound, and 5) can begin quickly. 

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Funding

  • $150M will be available for specific projects (over a period of 5 years) as follows: 
    • $75M will be for mixed-use housing/TOD projects 
    • $75M will be for infrastructure projects 
    • Minimum total project cost of $5M
    • Min award size of $2.5M 
    • Max award size of $10M 
    • Min 50% match of award amount must be sourced from non-state funds
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Eligibility

Eligible Applicants – (Both types): 

  • Not-for-profits  
  • Municipalities 
  • Public Benefit Corporations 
  • Including IDA and LDCs 
  • For-profit companies 

Eligible Uses of Funds – (Both types): 

  • Construction, expansion, and rehabilitation of facilities 
  • Equipment/Machinery 
  • Infrastructure and site development 
  • Design/engineering related to construction  
  • Funds may cover costs of new construction or improvements to essential building elements. See “Essential building elements” definition in application guidelines document.

Ineligible Uses of Funds – (Both types): 

  • Residential with no other uses at the project location 
  • Casino or gambling institutions 
  • Legal services 
  • Medical and Nursing services 
  • Retail firms with no other eligible components 
  • Refinancing  
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Project Selection Criteria

Transformative projects will be scored based on the following criteria:

Mixed-Use Housing Projects/TOD Projects:

  • Alignment with the MHREDC strategy.
  • Number of affordable housing units being created.
  • Minimum 10 percent applicant equity in the project.
    • ESD requires that the Applicant contribute a minimum of ten percent (10%) of the total project cost in the form of equity contributed after the Applicant’s acceptance of ESD’s incentive proposal. Equity is defined as cash injected into the project by the Applicant or by investors and should be auditable through the Applicant’s financial statements or accounts, if so requested by ESD. Equity cannot be borrowed money secured by the assets in the project or grants from a government source.
  • Ability to leverage prior NYS investment.
  • Amount of leveraged non-state funding sources, including demonstration that at least 50 percent of the award amount are non-state funds. Federal funds that pass through a NYS agency will not be counted towards the 50 percent non-state funds utilization criteria.
  • Demonstrated local government and/or community support (if site plan approvals necessary process should be underway).
  • Housing that will support distressed communities and disadvantaged populations by providing increased access to housing options throughout the region.
  • Financial strength of applicant and demonstrated ability to complete projects in a timely manner.
  • Project must be either ready to commence construction within two years of being selected for funding or be completed within six years.  

Essential Infrastructure Projects:

  • Alignment with the MHREDC strategy.
  • Either new system installations or upgrades for water, roads, green renewable technologies (e.g. EV charging stations) or other similar costs. 
  • Must demonstrate a connection to increased housing density and/or TOD projects.  
  • Minimum 10 percent applicant equity in the project.
    • ESD requires that the Applicant contribute a minimum of ten percent (10%) of the total project cost in the form of equity contributed after the Applicant’s acceptance of ESD’s incentive proposal. Equity is defined as cash injected into the project by the Applicant or by investors and should be auditable through the Applicant’s financial statements or accounts, if so requested by ESD. Equity cannot be borrowed money secured by the assets in the project or grants from a government source.
  • Ability to leverage prior NYS investment.
  • Amount of leveraged non-state funding sources, including demonstration that at least 50 percent of the award amount are non-state funds. Federal funds that pass through a NYS agency will not be counted towards the 50 percent non-state funds utilization criteria.
  • Demonstrated local government and/or community support (if site plan approvals necessary process should be underway).
  • Financial strength of applicant and demonstrated ability to complete projects in a timely manner.
  • Project must be either ready to commence construction within two years of being selected for funding or be completed within six years.
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How to Apply

View the Mid-Hudson Momentum Fund application here.

  • Please review the Mid-Hudson Momentum Fund Guidelines when preparing your application.
  • Applications must be submitted to the ESD Mid-Hudson Regional Office directly from the application by clicking “Submit” on page 13.
  • Please remember to review the “Attachment Checklist” on page 14 for a list of documents that are required upon submitting your application.

Applications will be reviewed and recommended by the Mid-Hudson REDC to ESD based on: 

  • Alignment with the Mid-Hudson REDC strategy of LIVE, WORK & PLAY  
  • Amount of leveraged non-state funding sources 
  • Prior successful experience in related projects   
  • Support of NYS officials/local government and/or community support  
  • If site plan approvals necessary, process must be underway 
  • Financial strength of applicant  
  • Shovel readiness of the project 

Application Deadline:
Applicants will need to submit an application to ESD by July 28, 2023 at 4 PM to be reviewed by the Mid-Hudson Regional Economic Development Council shortly thereafter. Applications that are received after July 28, 2023 will be reviewed by the Mid-Hudson Regional Economic Development Council on a quarterly basis.

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Contact

To receive Mid-Hudson Momentum Fund program email updates, sign up here.

For questions, contact: [email protected]