$150M Housing Central New York Fund

Governor Kathy Hochul today launched the new Housing Central New York Fund, a $150 million public-private financing initiative designed to accelerate housing production and keep costs down across Central New York as the region prepares for historic economic growth driven by Micron’s $100 billion investment in the region. Empire State Development is seeding the revolving loan fund with $30 million, with an additional $120 million from a range of partners — including Micron, local financial institutions, and other funders — with the goal of supporting the development of at least 2,500 new workforce housing units over the fund’s initial seven-year term. Counties eligible for participation include: Cayuga, Cortland, Madison, Oneida, Onondaga and Oswego.

“The only way to solve the housing crisis is to build more housing,” Governor Hochul said. “As Central New York prepares for unprecedented growth, the Housing Central New York Fund will help to ensure families, workers and communities can afford to live and grow where the opportunities are and build their future in New York State.”

The new program is part of New York State’s commitment under the Community Investment Framework signed with Micron in 2022 to jointly invest in Central New York in preparation for the company’s megafab and builds on Governor Hochul’s comprehensive strategy to pair major economic development investments with housing, infrastructure, and workforce initiatives — ensuring that growth delivers lasting benefits for communities across New York State.

A 2023 ESD-commissioned housing study by HR&A found that anticipated growth is expected to generate demand for 30,000 additional housing units in the region — requiring a tripling of current annual housing production. High interest rates, rising construction costs, and financing gaps have put many planned projects at risk, making coordinated public-private investment essential to keeping housing costs affordable and development moving forward.

To address these challenges, ESD partnered with CenterState CEO to design an innovative financing tool that supports mixed-income, smart-growth-oriented multifamily housing. Following a competitive procurement, ESD selected Community Preservation Corporation, a nonprofit Community Development Financial Institution, to operate the fund.

Empire State Development President, CEO, and Commissioner Hope Knight said, “Governor Hochul understands that attracting world-class long-term economic growth like the Micron project also requires investing in the homes and communities that make growth possible. Through the Housing Central New York Fund, the state is showing how we can tackle big challenges, like the housing crisis, with smart public-private partnerships so workers and their families can afford to live near good-paying jobs and further revitalize the Central New York region.”

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Under Governor Hochul, New York State is laser-focused on increasing housing supply while investing in our communities. HCR thanks Empire State Development, Community Preservation Corporation, Micron and local funders in supporting the $150 million Housing Central New York Fund, a public-private partnership that will ensure the responsible development of at least 2,500 housing units while maintaining accessible, affordable options for individuals and families during a transformational time in Central New York’s history.”

CenterState CEO Senior Vice President of Strategy, Policy and Planning Ben Sio said, “Central New York must invest in itself to tackle the challenges that come with being a growing community. Housing is a critical need for the region, and the HCNY Fund is a powerful example of what can be done when the public and private sectors work together to find a collective solution. This partnership between financial institutions, private partners, government, philanthropic organizations and nonprofits will enable needed housing projects to come off the sidelines and become places Central New Yorkers can call home. I thank all those involved in creating this fund for their forward-thinking commitment to making the region a more affordable place to live during this time of historic growth.”

The initiative will provide subordinate financing at more advantageous rates to spur often costly housing construction of both rental and for-sale housing. The State’s unique role in the fund is a critical credit enhancement that reduces risk for private lenders and enables better financing for developers. Projects supported must meet clear land-use standards and affordability goals, which is the primary purpose of the fund, including:

• Rental housing: At least 10 percent of units affordable to households earning at or below 80 percent of Area Median Income
• For-sale housing: At least 10 percent of units affordable to households earning at or below 110 percent of Area Median Income
• Smart-growth requirements: Minimum density of 10 units per acre and a minimum project size of 10 units
• Pro-Housing Communities: Projects must be located in a New York State Pro-Housing certified community

The Community Preservation Corporation will manage all aspects of the fund, including project sourcing, underwriting, loan deployment, and servicing. ESD will provide oversight through approved underwriting guidelines and quarterly performance reporting. The Community Preservation Corporation will begin to accept proposals immediately via HousingCNY.com, with funding determinations made on an ongoing basis. At the conclusion of the seven-year grant term, remaining State funds will operate as a revolving source of capital for housing projects throughout Micron’s construction period.

Micron Executive Vice President of Global Operations Manish Bhatia said, “Micron’s investment in Central New York is a long-term commitment, both to building the world’s most advanced memory manufacturing here and to collaborating with the local community. Our contribution to the Housing Central New York Fund aligns with Micron's goal of creating a vibrant technology hub in the region. It will increase high-quality housing so that workers, families and other members of an expanding growing semiconductor ecosystem can grow together with the opportunities this project will create.”

Micron Executive Vice President and Chief People Officer April Arnzen said, “A thriving workforce is rooted in strong communities, and housing is a critical part of that foundation. Through our support for the Housing Central New York Fund, Micron is investing in solutions that help attract and retain the workforce essential to building, operating, and sustaining our leading-edge semiconductor manufacturing facility for generations to come.”

Community Preservation Corporation CEO Rafael E. Cestero said, “Micron’s historic commitment to Central New York will bring tens of thousands of new jobs and create a significant need for quality, affordable, and workforce housing. The Housing Central New York Fund is a critical tool to help the region meet this moment by financing the creation of the homes required to support this growth and ensure communities can thrive and grow. This is a pivotal opportunity to create sustainable, equitable housing for the people who will fuel the region’s future. My thanks to Governor Hochul, Empire State Development, CenterState CEO, Micron Technology, and our Housing Central New York funding partners for their dedication and commitment.”

Onondaga County Executive Ryan McMahon said, “For the first time in generations more people are calling Onondaga County home thanks in large part to the growing and diverse economic opportunities available and as a growing community the need for housing is greater than ever. That is why my administration has proudly invested millions of dollars to grow our housing inventory to meet the demand. With Micron’s historic investment poised to further transform our region, partnerships at every level will be critical more than ever to meet the growing demand for housing. Thanks to our partners at the State, this new initiative will help accelerate housing development by tackling financing gaps as well as strengthen the foundation for long-term economic success and workforce readiness.”

Oswego County Legislature Chairman James Weatherup said, “This access to capital will spur development throughout the Central New York Region and help address housing affordability and availability. This is an issue that’s important to Oswego County residents and I’m glad to see the state support this initiative.”

Cayuga County Chair Jonathan Anna said, “We thank Governor Hochul for aligning housing development with economic expansion. As major investments reshape Central New York, the Housing Central New York Fund provides the critical support needed to deliver new homes and sustain a strong workforce for years to come. Cayuga County is geographically positioned to grow and continues to benefit from the ripple effects of this historic economic investment, and we know housing demand will touch us too.”

Oneida County Executive Anthony Picente said, “Oneida County is experiencing an economic resurgence. Unprecedented investments by companies like Chobani in Rome and Micron, along with the success of existing businesses, are creating thousands of new, good-paying jobs. More housing is critical to sustaining and fueling future economic growth. Oneida County’s own housing study identified a need for more than 6,000 new housing units just in Oneida County over the next 10 years, and steps are already underway to meet that demand. The Housing Central New York Fund is a much needed source of funding that will directly support the construction of new housing.”

Madison County Board of Supervisors Chair James Cunningham said, “We’re grateful to Governor Hochul for recognizing that growth only works if people can find a place to call home. This funding will help thousands of families stay close to new jobs and new opportunities. By funding housing production, we can bring in more residents and keep the ones we have to support our local economies and improve our communities. Madison County faces housing challenges ranging from rising costs and aging housing stock to barriers in development and housing insecurity. Initiatives like the Housing Central New York fund and the Madison County Housing Collaborative we can make housing affordable, safe and accessible.”

KeyBank Central New York Market President Stephen Fournier said, “Real, tangible and historic investment is taking hold in Central New York thanks to Micron’s $100 billion-dollar investment in our region. While our community grows, making sure housing is available and affordable is a critical piece of the overall development puzzle. As a believer in Central New York, a community we call home, KeyBank is proud to support the Housing Central New York Fund that will shape neighborhoods and make home ownership attainable for the people who will drive this new, exciting phase of revitalization here.”

M&T Bank’s Central New York Regional President Steve Gorczynski said, “The economic growth underway in Central New York presents an opportunity to strengthen our region for generations to come. M&T Bank recognizes that proactive solutions like the Housing Central New York Fund program will play an important role to ensure the housing supply keeps pace with this momentum.”

Canandaigua National Bank Executive Vice President and Chief Lending Officer Charlie Vita said, “The Housing Central New York Fund has the potential to help solve one of Central New York’s major challenges, housing that can be developed and utilized by the whole community. We are proud to support financing programs that help bring housing that can be attainable for everyone and help support economic growth for our region.”

Community Bank N.A. Central New York President Lindsay Weichert said, "As Central New York enters an exciting new era of growth, the need for quality, affordable housing for all within our community has never been more urgent. That's why Community Bank is so proud to partner with Governor Hochul, Empire State Development, Community Preservation Corporation, Micron, and other financial institutions to help solve our local developers’ funding gap and bring more housing projects to fruition. Our $10 million commitment to this vital fund is an investment in the infrastructure that will support lasting opportunity and ensure that everyone in Central New York can share in the region's bright future."

NBT Bank President of Central New York and Pennsylvania David Kavney said, “NBT Bank is proud to join ESD, Community Preservation Corporation, and CenterState in support of the Housing Central New York Fund. With our 170-year history of investment in Central New York and long-standing involvement in the semiconductor and advanced manufacturing ecosystem in New York State, NBT fully understands the critical role that workforce housing will play in the program’s success. Just as Micron will be transformational to the Central New York economy, the Housing Central New York Fund will be transformational to Micron.”

Pathfinder President and CEO James Dowd said, “For us, this isn’t about checking a box, it’s about investing in the place we’ve called home for more than 165 years. Our participation in the HCNY Fund reflects our commitment to sustainable development, small business growth, and the long-term vitality of the communities we serve. Programs like this create real momentum, and we’re proud to help shape that progress locally. Because of our deep local knowledge and decision-making, we’re able to be hands-on and creative in how we support initiatives like this. We see this as an opportunity to collaborate with partners on the ground and help solve the very real housing challenge ahead of us. That’s the role a true community bank should play, not just funding growth, but helping to shape it.”

Broadview Federal Credit Union CEO Michael Castellana said, “We are thrilled to partner with Governor Hochul, Empire State Development, CenterState CEO, the Community Preservation Corporation, and other community-minded financial institutions by investing $20 million to support the launch of the Housing Central New York fund. This progressive program will complement the investments being made by New York State, Micron, and others, creating an unprecedented opportunity for Central New York. Broadview looks forward to increasing our presence and being part of the area’s exciting future.”

Central New York Community Foundation President and CEO and Central New York Community Engagement Committee Co-Chair Melanie Littlejohn said, "The Central New York Community Foundation is anticipating a $1 million investment in the Housing CNY Fund to help create the homes our region urgently needs for its future workforce. These dollars will help strengthen healthy, inclusive neighborhoods. Equally important, this fund creates new pathways for minority- and women-owned developers — and for those who live in the communities they serve — to participate in and benefit from local opportunities. I would like to thank Governor Hochul, Empire State Development, CenterState CEO and our public and private partners. Together we are advancing a more community-centered approach to housing in Central New York.

SUNY Syracuse Educational Opportunity Center Vice President and Central New York Community Engagement Committee Co-Chair Tim Penix said, “The Housing CNY Fund is a welcome and important step forward for our region. The Community Engagement Committee heard consistently from Central New York residents that housing affordability must be at the heart of how we prepare for this growth, and it's encouraging to see that priority reflected in this initiative. We're grateful to Governor Hochul, Empire State Development, and our partners for ensuring that community voice has shaped this work, and we look forward to seeing these investments reach the families and neighborhoods across our region who stand to benefit most."

About Empire State Development

Empire State Development is New York's chief economic development agency, and promotes business growth, job creation, and greater economic opportunity throughout the state. With offices in each of the state's 10 regions, ESD oversees the Regional Economic Development Councils, supports broadband equity through the ConnectALL office, and is growing the workforce of tomorrow through the Office of Strategic Workforce Development. The agency engages with emerging and next generation industries like clean energy and semiconductor manufacturing looking to grow in New York State, operates a network of assistance centers to help small businesses grow and succeed, and promotes the state's world class tourism destinations through I LOVE NY. For more information, please visit esd.ny.gov, and connect with ESD on LinkedIn, Facebook and X.