Making Homeownership a Reality: Governor Hochul Announces $40 Million Available for New Construction of Affordable Homes Across Upstate New York

Housing

Making Homeownership a Reality: Governor Hochul Announces $40 Million Available for New Construction of Affordable Homes Across Upstate New York

Governor Kathy Hochul today announced that a new state affordable housing program called Block-By-Block is accepting applications to support the new construction of affordable homes in five Upstate cities. The program is making $40 million available to nonprofit organizations who will develop new homes on vacant or underutilized lots. The program is expected to create new single- and two-family homes in Albany, Binghamton, Buffalo, Rochester and Syracuse.

"Across New York, we are putting our resources to work to combat the housing crisis block by block," Governor Hochul said. "This latest program exemplifies our comprehensive approach to creating more affordable housing, revitalizing entire neighborhoods and ensuring our communities can thrive for generations to come."

Block-By-Block, administered by New York State Homes and Community Renewal, provides up to $300,000 in subsidy for the construction of a single-family home and $400,000 for a two-family home. The subsidy will enable the construction of new homes in existing neighborhoods and ensure that homes can be sold at an affordable purchase price to buyers who earn up to 60 percent of the Area Median Income.

Nonprofits may apply to redevelop between four and 10 vacant or underutilized lots and priority will be given to applications proposing to build on contiguous lots or lots located on the same block. This strategic approach of strengthening the housing supply block by block will lead to neighborhood revitalization and increase affordable homeownership opportunities for first-time homebuyers.

Interested organizations can view program information here. The program is limited to nonprofits with experience in new construction of single- or two-family homes.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "This $40 million investment will support the creation of more homes and strengthen neighborhoods across Albany, Syracuse, Binghamton, Rochester and Buffalo. It will give families the opportunity of homeownership and integrating into the fabric of their communities for generations to come. We are looking forward to partnering with talented community organizations as we work together to redevelop vacant lots and help more families own a home of their own."

State Senator Sean Ryan said, "Homeownership and quality housing stock are vital to the future of Upstate cities like Buffalo. The idea at the foundation of this program, that I designed and pushed in Albany, is that housing is infrastructure to grow our communities. A state investment into infill housing in existing neighborhoods is an investment into the infrastructure and tax base of our cities, and a way to build generational wealth. I am grateful to the Governor and my colleagues for including $40 million to create the Block-By-Block program, and I look forward to seeing new housing opportunities for families in Buffalo and across Upstate New York."

Assembly Majority Leader Crystal Peoples-Stokes said, "I thank Governor Hochul and New York State Homes and Community Renewal for their efforts in designing the new Block-By-Block Program. After initially proposing a pilot program with my colleague Senator Sean Ryan, I am thrilled with today's announcement that applications are now being accepted to support the construction of affordable homes across Upstate New York. This program ensures that affordable single-family and two-family homes will be available in neighborhoods that have seen an increase in empty lots and a decline in property value. I believe the Block-By-Block Program will go a long way to stabilizing and strengthening communities."

Albany Mayor Kathy Sheehan said, "Throughout my administration, I've focused on expanding affordable homeownership opportunities across the City of Albany - including by utilizing more than $15 million of our American Rescue Plan funding allocation to help build more housing in our historically underserved communities. Over the last 11 years we have built and renovated thousands of units of affordable housing across our City giving our residents their chance at the American dream, but we know there is still more work to do. Thank you, Governor Hochul, for continuing to invest in New Yorkers, our upstate cities, and helping create housing in spaces that have been long overlooked. We are thrilled at the future of opportunities that will be created by the 'block-by-block' program proposal."

Binghamton Mayor Jared M. Kraham said, "Building new housing is the best way we can support families, revitalize neighborhoods, create jobs and lower the cost of living across New York State. In Binghamton, like many upstate cities, there is huge potential for housing development but often funding gaps to get shovels in the ground and make projects a reality. I thank Governor Hochul for partnering to deliver these priority housing investments in the city."

Buffalo Mayor Christopher P. Scanlon said, "I applaud Governor Hochul for continuing to invest in affordable housing opportunities throughout New York State. This funding will help my administration's commitment to increasing affordable homeownership options and providing opportunities for residents to grow generational wealth."

Rochester Mayor Malik Evans said, "Programs like this and Rochester's Buy the Block program create new homes in neighborhoods hit hard by decades of disinvestment," said Rochester Mayor Malik D. Evans. "We are grateful for Governor Hochul's shared vision to develop quality housing, and her understanding of the profound impact these investments have-not just on homeowners, but also on families and neighborhoods. The benefits of these initiatives will ripple through our city for generations to come."

Syracuse Mayor Ben Walsh said, "Block-By-Block will help build on the infill housing development strategy that has been central to the Resurgent Neighborhoods Initiative (RNI). Syracuse started on this path in 2020 when we announced our RNI plan to build 200 units of new construction affordable single and two-family homes in neighborhoods around the City of Syracuse. Block by Block can help us expand that work. By turning vacant lots into affordable homes, this program not only addresses the housing shortage but strengthens our neighborhoods and creates pathways to homeownership for working families. I thank Governor Hochul for her continued investments in Syracuse and look forward to collaborating with our local housing partners on this new program."

Governor Hochul's Housing Agenda
The Block-By-Block program complements Governor Hochul's historic housing agreement in the FY25 Enacted Budget and is part of the Governor's commitment to addressing New York's housing crisis and making the State more affordable and more livable for all New Yorkers. Governor Hochul is committed to addressing New York's housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York's housing supply through new tax incentives for Upstate communities, new incentives and relief from certain state-imposed restrictions to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on state-owned property, an additional $600 million in funding to support a variety of housing developments statewide and new protections for renters and homeowners.

As part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. More than 50,000 homes have been created or preserved to date.

Last August, Governor Hochul announced the Pro-Housing Communities Program. Pro-Housing Community certification is a requirement for localities to access up to $650 million in State discretionary funding. To date, more than 250 communities have been certified, including Albany, Binghamton, Buffalo, Rochester and Syracuse.