State announces $150M fund for Mid-Hudson housing, infrastructure

WHITE PLAINS — New York state will make $150 million available to Hudson Valley businesses and municipalities to use for housing and infrastructure, Gov. Kathy Hochul announced last week at a Westchester news conference.

The initiative is called the Mid-Hudson Momentum Fund and will be implemented by Empire State Development. It is intended to provide funding for mixed-use housing and infrastructure projects that address the strains caused by population increase across the region — most notably rising housing costs.

Awards ranging from $2.5 million to $10 million will be granted for projects in Dutchess, Ulster,

Orange, Putnam, Sullivan, Rockland and Westchester counties — the area defined as the Mid-Hudson region by Empire State Development, which oversees the state’s economic development public-benefit corporations.

Funding for the MidHudson Momentum Fund will be awarded through a competitive application process. Projects that prioritize affordable housing and renewable energy technologies, have community support and are “shovel ready” will have a better shot at funding, according to a Mid-Hudson Momentum Fund landing page.

Notably, projects that “demonstrate a connection to increased housing density” will also curry favor with Empire State Development, and the plan will require municipalities with Metropolitan Transportation Authority rail stations to locally rezone for higher-density residential development. Both qualifications are in line with Hochul’s State of the State promise to increase housing density across the state in order to build 800,000 houses over the next decade.

More than 33,000 new residents have moved to the Mid-Hudson region over the past two years, according to a news release from the governor’s office, continuing the Hudson Valley’s transformation into a destination for tourists and permanent residents and exacerbating an affordability crisis that was under way before the pandemic. Less than 1

percent of the region’s housing stock was available last year, according to the release.

“As one of the most picturesque and historic areas in New York, the Mid-Hudson region has been a crown jewel for our state that has driven our economy and welcomed new residents and visitors for years,” Hochul said in the release. “The new Mid-Hudson Momentum Fund will help to ensure that the region can continue to serve as a destination for families, workers, businesses, and tourists by helping to address the housing shortage, creating an equitable housing supply, and growing local infrastructure where communities need it most.”

The Mid-Hudson Momentum Fund is separate from the $250 million Infrastructure Fund, a statewide initiative proposed in the Executive Budget to support the New York Housing Compact, the governor’s longterm housing strategy.

The Infrastructure Fund will also be available to Mid-Hudson communities if approved in the budget, a spokesman for the governor’s office confirmed.

At the White Plains news conference, Hochul also announced other funding plans for the Mid-Hudson region as part of the executive budget, including $60 million for Bear Mountain State Park, $30 million for new Route 17 ramps and $78 million for bridge and road repairs. The city of Port Jervis, the town of Cornwall and the village of Sleepy Hollow also received funding in the first round of NY Forward, a $100 million downtown revitalization program that builds on the state’s Downtown Revitalization Initiative.

Applications for the Mid-Hudson Momentum Fund will be accepted starting this spring and awards will be granted on a rolling basis over the next five years. A minimum 50 percent match from nonstate funding sources is required for all applicants. Learn how to apply online.