New York State is taking major steps to expand affordable housing, protect homebuyers, and support communities in need. A new package of initiatives announced in the FY 2026 state budget will invest over $500 million into building, preserving, and protecting homes across the state.
The efforts come as growing industries, like semiconductor manufacturing in Upstate New York, drive demand for thousands of new housing units over the next decade.
Major new investments in New York housing
The FY 2026 budget includes several key initiatives to address the housing crisis:
- $100 million Pro-Housing Supply Fund to assist certified Pro-Housing Communities with critical infrastructure upgrades.
- $50 million Mixed-Income Revolving Loan Fund to support rental housing development outside of New York City.
- $50 million Starter Home Innovation Fund to encourage building smaller, affordable homes.
- $50 million Housing Access Voucher Program Pilot to support families experiencing homelessness or at risk of losing housing.
- $40 million for the Homeowner Protection Program to prevent foreclosures and deed fraud.
These programs build on New York’s multi-year strategy to create or preserve 100,000 affordable homes statewide.
Cracking down on institutional investors
A significant part of the housing strategy targets large investment firms that purchase large numbers of single- and two-family homes. New legislation will:
- Impose a 90-day waiting period before institutional investors can bid on homes.
- Ban certain tax deductions for large investors holding multiple residential properties.
- Establish financial penalties for violations.
These measures are designed to protect first-time and moderate-income buyers from being priced out of the market.
Helping communities redevelop and grow
The budget also empowers local governments to address housing shortages:
- Vacant property redevelopment incentives will help turn abandoned buildings into affordable homes.
- Expanded technical assistance funding will help municipalities modernize zoning and permitting to encourage new development.
- Reforms to historic tax credits will make it easier to finance renovation projects, particularly in Upstate communities.
Meanwhile, New York is doubling its State Low-Income Housing Credit Program, generating an estimated $210 million in new affordable housing investments each year.
Addressing future challenges
In addition to boosting construction and protecting buyers, New York is also strengthening resilience and disaster preparedness:
- $50 million will expand programs like Rapid Response Home Repairs and Resilient Retrofits to help homeowners recover from severe weather.
- New fair housing laws will combat home appraisal discrimination, further promoting equity in the housing market.
Housing experts say these combined efforts are critical as New York prepares for population growth fueled by massive economic investments from companies like Micron, GlobalFoundries, and others across the state.
Key takeaways
- New York is investing over $500 million to make homeownership more affordable and accessible.
- Strong new protections will limit institutional investors’ impact on residential markets.
- Starter homes, mixed-income developments, and rental support programs are top priorities.
- The state is committed to growing housing supply while protecting existing homeowners.
For more information on programs and eligibility, visit the New York State Homes and Community Renewal website.
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