New York grants $40 million to rehabilitate apartments with income restrictions

The state of New York has announced $40 million in awards for nonprofits and local governments across New York, including the Capital Region, Central New York, Finger Lakes, Mid-Hudson, North Country, Southern Tier and Western New York. The grants will go toward repairing and renovating up to 600 vacant and unlivable apartments, turning them into safe and affordable rentals.

The Vacant Rental Improvement Program, introduced as part of the Fiscal Year 2025 Enacted Budget, focuses on converting empty units and underused buildings into affordable housing for low- and moderate-income families in communities outside of New York City. The recipients were chosen through a competitive Request for Proposals process by New York State Homes and Community Renewal.

“This important $40 million investment is crucial to our efforts to address housing challenges in upstate communities,” New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said. “This investment not only supports property owners in revitalizing dormant, distressed units but also helps increase housing supply and alleviate the critical shortage of affordable housing.”

The funding will support owners of small residential properties with one to five units or mixed-use buildings with up to five housing units in converting them into high-quality, affordable apartments.

Through the program, such landlords can receive up to $50,000 to renovate vacant rental units for tenants with a household income limit of 80% of the area median income (AMI) and up to $75,000 for units with a household income limit of 60% AMI.

Qualifying improvements include:

Health and safety upgrades.

Correction of code violations.

Accessibility modifications.

Environmental remediation.

General repairs to restore properties to habitable conditions.

The Vacant Rental Improvement Program is designed to benefit low- and moderate-income tenants, requiring all assisted units to remain affordable and adhere to rent limits for a 10-year regulatory period. The program is the agency’s first initiative focused exclusively on restoring vacant and distressed rental units and making them available at affordable rates.

Photo by Vladimir Kudinov