New York State recently launched the Housing Central New York (HCNY) Fund, a $150 million public–private revolving loan fund designed to accelerate the development of mixed income housing across Central New York. The fund arrives with the anticipation of major population and employment growth driven by Micron Technology’s planned $100 billion semiconductor megafab in Onondaga County.
As announced on Feb. 19, 2026, HCNY is capitalized with $30 million in seed funding from Empire State Development (ESD) and $120 million from private partners, including Micron, several regional banks, credit unions, CenterState CEO and other institutions. It will be administered by the Community Preservation Corporation (CPC), which was selected through a competitive procurement process.
HCNY will provide low cost subordinate debt financing to support mixed income rental and attainable for sale housing projects facing financial barriers caused by high interest rates, rising construction costs and capital stack gaps. This structure is intended to move projects “off the sidelines” and expand the regional housing pipeline.
The fund serves six counties — Cayuga, Cortland, Madison, Oneida, Onondaga, and Oswego — each identified as the core area impacted by Micron related job creation. Priority will be given to projects located in Pro Housing certified communities, those that include a minimum percentage of affordable units, and developments aligned with density oriented, smart growth principles. Applications are to be accepted on a rolling basis.
The HCNY Fund is expected to support at least 2,500 new homes over its initial seven year term, contributing to the broader need for approximately 30,000 additional units, as identified in a 2023 HR&A housing demand study. Local projections indicate the Syracuse region may require up to 32,000 new homes by 2038.
This represents one of the largest housing loan funds of its kind in New York State, and is distinguished by an unprecedented level of public–private collaboration by and among ESD, CPC, Micron, CenterState CEO, and a broad coalition of regional financial institutions including Canandaigua National Bank & Trust Company, Community Bank, M&T Bank, NBT Bank, KeyBank, Pathfinder Bank, and Broadview Federal Credit Union.
If you need assistance with determining project eligibility and applying to the HCNY fund, our Affordable Housing Industry Team can help. Please reach out to attorney Michael A. Discenza at (212) 912-3605 and mdiscenza@harrisbeachmurtha.com, or the Harris Beach attorney with whom you most frequently work.
This alert is not a substitute for advice of counsel on specific legal issues.
Harris Beach Murtha’s lawyers and consultants practice from offices throughout Connecticut in Bantam, Hartford, New Haven and Stamford; New York State in Albany, Binghamton, Buffalo, Ithaca, New York City, Niagara Falls, Rochester, Saratoga Springs, Syracuse, Long Island and White Plains; as well as in Boston, Massachusetts, and Newark, New Jersey.
