Governor Hochul Helps Unlock Housing Through $225 Million in Water Infrastructure Grants

Governor Kathy Hochul today announced the launch of the $225 million Clean Water for Housing program to help municipalities build the water infrastructure needed to support housing development. By lifting critical financial barriers, Governor Hochul is helping communities advance shovel-ready water quality projects that will lay the foundation for sustainable growth. The program builds on the Governor's comprehensive housing and clean water agendas that are investing billions in local projects to tackle the housing crisis and improve water quality while minimizing costs for families and businesses.

"No family should be unable to buy a home because their community's water and sewer systems can't support housing growth," Governor Hochul said. "With $225 million in new funding, we're helping communities make critical improvements that unlock housing growth, strengthen local economies and give more New Yorkers the opportunity to find a home they can afford."

Governor Hochul has made $175 million available for projects statewide, with an additional $50 million specifically for rural municipalities, where aging or inadequate water systems can pose significant obstacles to development. These grants will help communities address their water infrastructure needs, expand access to essential services and establish the systems needed to support future housing growth.

The New York State Environmental Facilities Corporation (EFC) is accepting applications for proposed drinking water, sewer and stormwater infrastructure projects necessary to promote housing development, improvements or rehabilitation. Grants are available to municipalities certified through the State's Pro-Housing Communities Program and eligible counties.

Governor Hochul signed Executive Order 30 in July 2023 creating the Pro-Housing Community Program, which recognizes and rewards municipalities actively working to unlock their housing potential and encourages others to follow suit. Under the Pro-Housing Community Program, which is administered by New York State Homes and Community Renewal (HCR), local governments that are taking action to support housing growth to address the housing shortage can apply to become certified. After becoming certified, localities have exclusive access to up to nearly $1 billion in discretionary State funding. Since the launch of the Pro-Housing Communities Program, these State funds have supported the creation of up to 20,000 more homes statewide. To date, more than 460 communities across New York have been certified. Communities can learn more about the Pro-Housing Communities Program, including how to become certified, by visiting the Pro-Housing Communities Program website.

Applications and complete eligibility information are available on EFC's website. Funding will be awarded on a first-come, first-served basis until all the available grant funds are awarded.

EFC President and CEO Maureen A. Coleman said, "By investing in the essential systems that make housing possible, Governor Hochul is helping communities turn housing plans into new homes and thriving communities. Clean Water for Housing reflects Governor Hochul's commitment to tackling the housing shortage with practical investments that help communities grow, protect public health and create more vibrant and resilient neighborhoods."

State Health Commissioner Dr. James McDonald said, "Governor Hochul is investing in clean water and safe housing throughout New York State. The Clean Water for Housing program provides critical funding opportunities for municipalities that will help them upgrade their drinking water systems and support the growth of their communities without overburdening rate payers."

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Access to reliable water, sewer and stormwater systems are central to supporting our housing growth agenda in New York State. Governor Hochul created the Pro-Housing Communities Program to incentivize cities, towns and villages to support communities that improve their infrastructure so that more housing can be created and preserved. Thank you to the Environmental Facilities Corporation for administering $225 million through the Clean Water for Housing program so that more than 460 Pro-Housing Communities can invest in their futures."

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, "New Yorkers need safe housing with reliable access to water in the neighborhoods they call home. The $225 million Clean Water for Housing program is the latest example of how state agencies are helping advance Governor Hochul's continued efforts to increase support for sustainable growth and housing statewide, while protecting public health and the environment."

New York's Commitment to Water Quality

Under Governor Hochul's leadership, New York State continues to increase its historic investments in water infrastructure. Governor Hochul announced $500 million in grants this week to deliver the first installment of her $3.75 billion water infrastructure investment plan, building on $10.6 billion provided to local projects since 2021. New Yorkers can track projects benefiting from EFC's investments using the interactive project impact dashboard. In addition to the Clean Water for Housing funding, EFC is currently accepting applications for $45 million in funding for Green Resiliency Grants. EFC's Community Assistance Teams are available for one-on-one consultations to help municipalities prepare strong applications.

Governor Hochul's Housing Agenda

Governor Hochul is dedicated to addressing New York's housing crisis and making the State more affordable and livable for all New Yorkers. Since FY23, the Governor has worked to increase housing supply to make housing more affordable by launching a $25 billion five-year comprehensive Housing Plan, enacted the most significant housing deal in decades and implemented new protections for renters and homeowners. Under Governor Hochul's leadership, HCR has created new programs that jumpstart development of affordable and mixed-income homes - for both renters and homebuyers. These include the Pro-Housing Community Program, which allows certified localities exclusive access to up to nearly $1 billion in discretionary State funding. More than 460 communities throughout the state have been certified Pro-Housing.

As part of the FY27 Enacted Budget, Governor Hochul secured a number of landmark reforms to New York's State Environmental Quality Review Act (SEQRA) to speed up housing and infrastructure development and lower costs as part of her "Let Them Build" agenda. "Let Them Build" also includes executive actions to expedite critical categories of projects that have been consistently found to not have significant environmental impacts, but for too long have been caught up in red tape and subject to lengthy delays.

The FY27 Enacted Budget completes the Governor's current five-year Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations plus the electrification of an additional 50,000 homes. More than 87,000 affordable homes have been created or preserved to date. The Enacted Budget also invests $250 million in capital funding to accelerate the construction of thousands of new affordable homes.