New York state is launching the Housing Acceleration Fund (HAF), a $215 million initiative aimed at speeding up the development of shovel-ready, mixed-income residential projects. The New York housing accelerator, announced on Oct. 27, is part of the fiscal year (FY) 2026 budget plan and is designed to develop approximately 1,800 new homes and generate up to $1 billion in housing investment.
Anchored by a $100 million state investment and matched by $115 million in capital from participating lenders, the program is administered by New York State Homes and Community Renewal (HCR). It provides low-cost subordinate construction loans for mixed-income multifamily developments that are ready to build but face financing gaps. Under the program, the state’s portion is offered at approximately 3% during the construction period, while a partner lender contributes additional capital. This enables projects to move forward with minimal delay and keep housing affordable for the tenant.
Developers must contribute at least 20 % equity and the combined HAF loan cannot exceed roughly 80 % of the total project cost. Once construction is complete and the project enters permanent financing, repayments replenish the fund so that it can be reused in future projects.
The program divides the initial funds geographically, with $100 million directed to New York City and the remainder available throughout upstate and downstate New York.
Four lending and development firms were selected to manage portions of the program’s capital: Community Preservation Corporation ($45.5 million), Merchants Bank ($42 million), Enterprise Community Partners ($7.5 million), and the Local Initiatives Support Corporation (LISC) ($5 million).
The HAF is designed to complement existing tools such as tax-exempt bonds and low-income housing tax credits, by offering a new financing tool specifically for mixed-income projects that might otherwise stall.
If the program achieves its goals, it could significantly shorten the wait for new housing in communities across the state, especially in the mixed-income multifamily rental housing market. The New York housing accelerator aligns with statewide efforts to improve housing options for low and mixed-income residents.
Photo by Aleks Marinkovic from Pexels
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