Pro Housing Community Supply Funds Program

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Objective

Many communities face barriers to higher-density development due to outdated or insufficient water, sewer, and electrical systems. By modernizing these essential services, localities can unlock new and more affordable housing opportunities, attract private investment, and create more vibrant and sustainable neighborhoods. To further support communities in tackling the housing crisis, Empire State Development (“ESD”), in partnership with New York State Homes and Community Renewal (“HCR”), has $100 million in capital funding available through the Pro-Housing Supply Funds Program to help finance essential infrastructure projects -— such as sewer and water system upgrades —- needed to facilitate new housing development in certified Pro-Housing Communities. 

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Overview

Capital grant funding from the Pro Housing Community Supply Funds Program is available through the State‘s Regional Economic Development Council Initiative, which helps drive regional and local economic development across New York State in cooperation with 10 Regional Economic Development Councils (“Regional Councils”). Capital grant funding is available for projects that are investing in infrastructure that is critical to expanding housing supply across New York State. Awards will range from $2,500,000 to $10,000,000 dollars.

Applicants are strongly encouraged to reach out to their ESD Regional Office to discuss their project prior to submitting an application.

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Eligibility

Eligible applicants include pro-Housing certified cities, towns, and villages.*

  • City, town, and village applicants must either be certified as a pro-housing municipality prior to submitting an application for OR
  • Must apply to HCR to become a certified pro-housing municipality by the July 31, 2025 deadline and must be approved for certification prior to award announcements.

Counties and municipally designated non-profit economic development organizations are also eligible to apply; so long as the project occurs within a pro-housing certified municipality.*

  • For the municipality in which the project is located the city, town, or village must either be certified as a pro-housing community prior to submitting an application for OR
  • Must apply to HCR to become a certified pro-housing community by the July 31, 2025 deadline and must be approved for certification prior to award announcements.

 

* The Pro-Housing Certified Communities Program was created to incentivize local governments that are committed to addressing New York’s housing crisis and is administered by NYS Homes and Community Renewal (HCR). HCR will review and certify communities who have taken steps and are committed to increasing their housing stock.


ELIGBILE PROJECTS AND REQUIREMENTS

Eligible Applicants must be able to demonstrate ownership of the site or provide proof of site control/permission from the entity that does own it.

Applicants must demonstrate that grant funds will be used exclusively for infrastructure improvements that directly enable residential development, including mixed-use projects where the vast majority of square footage will be for residential use, as well as a clear explanation of how the requested infrastructure improvements (e.g., sewer, water, roads, utilities) are essential to any planned residential development, including any applicable engineering plans. 

  • Projects must support the creation of at least 20 housing units
  • Projects must be ready to commence within 24 months of the award
  • Demonstrated local government and/or community support
  • Commitment from a developer or similar entity
  • Demonstrated 50% matching funds

 

Program Highlights: 

  • Projects will be eligible to receive up to fifty percent (50%) of the eligible total project cost with a minimum award amount of $2.5 million dollars and a maximum award amount of $10 million dollars.
  • The final 20% of the grant award will be withheld until the commencement of the new housing construction project.
  • Limit of two grant awards per Pro Housing Community.
  • Priority will be given to projects demonstrating the greatest impact to the area and those that create 100 or more housing units and those that will be ready within 12 months.
  • Projects will be reviewed for the degree to which the project supports the creation of new housing in areas with a demonstrated workforce and/or affordable housing need.
  • Projects will also be reviewed for project readiness, including zoning restrictions and allowances, as well as how complete and attainable the site plan and development timeline are.
  • Project expenses that are incurred prior to the date of an ESD award will not be eligible for reimbursement and could result in the project being deemed ineligible.
  • An ESD award notification will outline the terms and conditions of the award and will include MWBE and SDVOB participation goals. The Office of Contractor and Supplier Diversity (“OCSD”) will monitor MWBE and SDVOB utilization in connection with this project.