New York has awarded the final $22 million from its Mid-Hudson Momentum Fund to three projects expected to add or support 825 homes in Peekskill, Newburgh and Haverstraw.
The awards complete a $150 million initiative that has supported 26 housing and infrastructure projects expected to create or unlock more than 11,000 homes, including nearly 4,000 affordable units.
Gov. Kathy Hochul's office said the program prioritized certified Pro-Housing Communities and projects involving mixed-use development, transit access, downtown revitalization and waterfront connections.
Three projects receive final awards
Peekskill will receive $3.25 million for the SoLo project, a mixed-use development planned with 231 homes, including 100 affordable units, and four commercial spaces totaling 3,876 square feet.
The Peekskill project also includes streetscape and infrastructure work along Louisa and South streets. The improvements are intended to connect downtown and the waterfront while providing access to the Metro-North station.
Newburgh will receive $8.75 million for One Lafayette, a five-story development of about 200,000 square feet. Plans call for 144 affordable apartments, commercial and retail space and additional off-street parking.
Haverstraw will receive $10 million to redevelop the former Chair Factory industrial complex on the Hudson River. The roughly $300 million project includes 450 mixed-income homes and about 13,000 square feet of retail and community space.
The Haverstraw development is also intended to reconnect downtown with the waterfront, increase public access and support additional housing and economic activity. State officials said the broader development area could ultimately provide more than 1,000 homes.
Fund targets housing barriers
Hochul created the Mid-Hudson Momentum Fund in 2023 to address housing shortages, infrastructure limits and redevelopment needs. Awards were based on alignment with the regional economic development council's strategy, community support and potential to add affordable housing and long-term economic benefits.
Empire State Development and New York State Homes and Community Renewal administer work connected with the initiative. Officials said the final grants provide added support to projects that had previously been selected in the program's second round.
The state's Pro-Housing Communities program reserves access to as much as $750 million in discretionary state funding for certified localities. More than 450 communities have been certified, including Peekskill, Newburgh and Haverstraw.
Part of statewide housing strategy
The fund is one part of the state's five-year, $25 billion housing plan, which seeks to create or preserve 100,000 affordable homes, including 10,000 with support services, and electrify another 50,000 homes.
The governor's office said more than 87,000 affordable homes have been created or preserved under the plan so far. The current state budget also includes $250 million to accelerate construction of additional affordable housing.
State officials said recent changes to environmental review rules are intended to shorten approval timelines for some housing and infrastructure projects. Those changes and the local awards do not eliminate other permits or project-specific requirements.
Local leaders in all three municipalities said the grants would help advance housing while supporting downtown businesses, transportation access and public spaces.
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