Making Homeownership More Affordable Statewide

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.