Governor Hochul Announces Up to $150 Million to Expand Heat Pump Installations for Homeowners and Small Residential Buildings Statewide

Governor Kathy Hochul today announced up to $150 million in supplemental funding is now available to support the installation of energy-efficient heat pump systems in small residential buildings across New York State. The funding, administered through New York State Homes and Community Renewal's (HCR) Green Small Buildings Program, will help expand access to clean heating and cooling technologies while reducing emissions and improving affordability for homeowners and renters.

"New York is continuing to lead the nation in building an affordable and more sustainable future," Governor Hochul said. "By investing in modern, energy-efficient heat pump technology for homeowners and small buildings, we are lowering utility costs, reducing harmful emissions and ensuring more New Yorkers can live in safe, comfortable and climate-friendly homes."

As part of the State's $1 billion Sustainable Green Futures program, the Green Small Buildings Program supports the installation of high-performance heat pumps and related upgrades that enable building electrification across New York State. It is expected to expand access to clean energy upgrades for single family homes and small-scale residential buildings, including those serving low- and moderate-income households, while supporting local economies and advancing New York's transition to an all-electric building sector.

The funding is now available as a supplemental resource to various existing small building development grant and loan programs administered by HCR as well as through the State of New York Mortgage Agency's mortgage programs, allowing for streamlined delivery and faster implementation and ensuring broad geographic access throughout the State.

To ensure high-quality outcomes, all projects will be required to meet program guidelines developed in coordination with the New York State Energy Research and Development Authority's Clean Heat program. These standards will ensure best practices in installation, performance and long-term energy savings.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "This $150 million investment strengthens our ability to bring high-performance, all-electric solutions to homeowners and low-to-moderate-income residents of qualifying small buildings that are often overlooked in large-scale programs. By leveraging our existing partners and programs, we can move quickly to deliver cleaner, healthier and more affordable homes while advancing New York's nation-leading climate goals."

State Senator Kevin Parker said, "Let me be clear, this didn't happen by accident. This investment is the result of years of pushing, fighting and legislating to make sure New Yorkers aren't left behind in the transition to a clean energy economy. As Chair of the Senate Energy and Telecommunications Committee, I've worked to ensure that these resources are not just talked about but delivered directly into our communities. This is about the real impact, right now. Families are struggling with rising utility costs, aging housing stock and systems that no longer serve them. This funding puts relief where it belongs in people's homes, lowering bills, improving air quality and making those homes safer and more efficient today. But this is also about the future we are building. We are creating healthier neighborhoods, stronger local economies and a more resilient energy system that works for everyone, not just a select few. We are making sure that as New York moves forward, our communities move forward with it. This is what equity looks like. This is what leadership looks like. And this is what it means to deliver for the people of this state."

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, enacting the most significant housing deal in decades and implementing 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 $750 million in discretionary State funding. More than 410 communities throughout the state have been certified Pro-Housing.

As part of Governor Hochul's 2026 State of the State, the Governor proposed her "Let Them Build" agenda, a series of landmark reforms to speed up housing and infrastructure development and lower costs. This initiative will spur a series of common-sense reforms to New York's State Environmental Quality Review Act (SEQRA) and 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 Executive 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 80,000 affordable homes have been created or preserved to date. The Executive Budget also invests $250 million in capital funding to accelerate the construction of thousands of new affordable homes.

Contact the Governor's Press Office