New York is betting that factory-built homes can help solve one of its biggest housing challenges: the shortage of affordable starter homes.
Gov. Kathy Hochul announced Thursday that more than $20 million has been awarded through the state’s MOVE-IN NY program to build 68 affordable homes in Buffalo and Niagara Falls, the latest expansion of an initiative designed to lower construction costs and make homeownership attainable for more New Yorkers.
The funding includes $12 million for the City of Buffalo to develop 40 homes and nearly $8.5 million for Niagara Falls Neighborhood Housing Services to construct 28 homes.
The announcement marks the third round of funding through the program, which relies on prefabricated homes built in factories and assembled on-site. State officials say the homes can be completed in a fraction of the time required for traditional construction while costing significantly less to build.
“For too many families, homeownership is out of reach,” Hochul said. “MOVE-IN NY cuts the cost of housing production and brings these much-needed homes to market quickly and affordably.”
Addressing New York’s starter home shortage
State officials say affordable starter homes have become increasingly difficult to find across New York as construction costs, labor expenses, material prices and interest rates have climbed in recent years.
According to the governor’s office, building a small single-family home in New York can now cost $450,000 or more, creating a major barrier for first-time homebuyers and older residents looking to downsize.
The MOVE-IN NY program seeks to address that problem by using prefabricated “CrossMod” homes, which are constructed to federal housing standards and designed to resemble traditional site-built houses. Because the homes meet requirements established by Fannie Mae and Freddie Mac, buyers can qualify for conventional mortgage financing.
Under the program, municipalities, nonprofit organizations and land banks receive state funding to purchase and install the homes. The completed homes are then sold to low- and moderate-income buyers for less than the total cost of construction.
Building on recent housing reforms
The latest awards come as New York continues pursuing a broader strategy to increase housing production and expand homeownership opportunities.
Last year, Hochul signed the Land-Home Property Act, which creates a formal process for converting manufactured homes from personal property to real property. Supporters say the change will improve financing options and make it easier for buyers to secure traditional mortgages.
The governor also recently announced changes through the state’s EXPRESS NY initiative aimed at reducing regulatory barriers for manufactured housing. Among the changes was the elimination of a $25,000 bonding requirement for transporting certain prefabricated homes, reducing delivery costs and simplifying installation.
The state initially dedicated $50 million to MOVE-IN NY and added another $100 million in the recently enacted budget to expand the program and explore additional factory-built and modular housing technologies.
Housing strategy extends statewide
The newest awards follow two previous rounds of MOVE-IN NY funding that supported construction of 128 homes in communities including Onondaga, Cayuga, Erie, Montgomery, Schenectady and Suffolk counties.
The initiative is part of Hochul’s broader housing agenda, which has focused on increasing housing supply, reducing development barriers and creating new pathways to homeownership.
According to the governor’s office, New York has created or preserved more than 82,000 affordable homes since the launch of the state’s five-year housing plan. The state is working toward a goal of creating or preserving 100,000 affordable homes while also accelerating new residential development through regulatory reforms and targeted funding programs.
For Buffalo and Niagara Falls, officials say the latest investment will do more than add housing units. Local leaders argue the homes will help transform vacant land into productive neighborhoods, increase homeownership opportunities and create a pathway for families to build long-term wealth through homeownership.
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