$60 Million in Round II Funding Will Support 10 Strategic Projects To Build New Housing, Enhance Critical Infrastructure and Unlock Future Development Potential

Awards Continue to Prioritize Pro-Housing Communities and Mixed-Use, Transit-Oriented Development Under Governor’s Pro-Housing Communities Program

Learn about the Mid-Hudson Momentum Fund at esd.ny.gov/momentum

Traducción al español

Governor Kathy Hochul today announced the second round of awards under the Mid-Hudson Momentum Fund, providing more than $60 million to support 10 transformative projects across the Mid-Hudson region. These grants will leverage $627 million in total public-private investment towards critical infrastructure improvements and mixed-use projects that will enable significant new housing development across Orange, Rockland, Sullivan, Ulster, and Westchester counties. The projects range from new mixed-use and mixed-income housing developments to essential water treatment facilities and sewer infrastructure that together will unlock more than 8,000 new units of housing, over 2,000 of which will be affordable.

“The second round of Mid-Hudson Momentum Fund awards reflects our proactive approach to addressing New York's critical housing shortage while strengthening the infrastructure needed for thriving, resilient communities,” Governor Hochul said. "From securing clean water in Orange County to revitalizing downtown Mount Vernon, these strategic investments demonstrate our ongoing partnerships with Pro-Housing Communities that actively support growth and economic opportunity.”

Empire State Development President, CEO, and Commissioner Hope Knight said, “These ten projects represent the forward-thinking approach New York is taking to address both our immediate housing needs and the infrastructure challenges that have long constrained development. Under Governor Hochul's leadership, we're investing in the foundational systems that will support sustainable growth and economic opportunity throughout the Mid-Hudson region for decades to come.”

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “The 10 Mid-Hudson Momentum projects announced today build on the first funding round, complement the Governor's innovative Pro-Housing Communities Program, and will set a tremendous example for communities throughout the Hudson Valley. By investing in the critical foundational work necessary to unlock 8,000 new and diverse housing opportunities in Pro-Housing Certified communities throughout the region, we are demonstrating our commitment to integrated, holistic solutions that increase housing supply while also positioning communities for success and making them vibrant places where residents and businesses can flourish.”

MHREDC Co-Chairs Dr. Marsha Gordon and Dr. Kristine Young said, “These strategic investments through the Mid-Hudson Momentum Fund are crucial in addressing our region's housing and infrastructure needs, paving the way for sustainable economic growth. The diversity of these projects—from essential water systems to mixed-use developments—directly advances our regional economic development priorities and positions our communities for long-term prosperity. Together, they represent a significant step forward in creating resilient communities, enhancing quality of life, and unlocking the Mid-Hudson region's full potential.”

Representative George Latimer said, “Thank you to Governor Hochul and state leaders for their continued investments in Westchester County. It is no secret that our region needs more housing, and we need it fast. I am very glad to see Yonkers, Port Chester, Mount Vernon and New Rochelle have been selected to receive funding for infrastructure upgrades and to complete mixed-use and transit-oriented projects. These strategic investments will strengthen our communities and make them more livable for years to come.”

Majority Leader Andrea Stewart-Cousins said, “Under my leadership, our Senate Majority has prioritized investments that strengthen neighborhoods and build vibrant communities, and these Mid-Hudson Momentum Fund awards for Bridgewater North at Ludlow Station and The Abbey on Park exemplify that commitment. These transformative projects will create new, quality homes in Yonkers, enhancing our neighborhoods with mixed-use, transit-oriented developments that provide opportunities for all residents. I’m proud to champion initiatives that ensure Yonkers continues to thrive as an inclusive, welcoming, and dynamic city for generations to come. I thank Governor Hochul, my Senate Majority colleagues, and our Assembly partners for their ongoing dedication to investing in community-driven projects across New York.”

State Senator Shelley B. Mayer said, “I am thrilled that the Village of Port Chester and City of Yonkers have been selected to receive funding from the second round of the Mid-Hudson Momentum Fund, aimed at improving infrastructure and housing availability. The allocation of $10 million for projects related to the development of the former United Hospital site in Port Chester to expand affordable and senior housing, along with over $10 million for transit-oriented mixed developments in Yonkers will greatly support the continued growth of our vibrant communities. I am proud to represent both of these communities. My sincere thanks to Governor Kathy Hochul for this investment in Westchester.”

State Senator Michelle Hinchey said, “The Quality Inn Conversion project in Kingston speaks to the urgent need for permanent, supportive housing in Ulster County—helping our neighbors most in need find stability through a model that combines safe, long-term housing with on-site services. It’s a thoughtful investment in restoring dignity and creating opportunity in a way that will undoubtedly better lives and strengthen our community. I’ve been proud to champion this project for years, and am thrilled it’s receiving $2.5 million in additional state support through the Mid-Hudson Momentum Fund, and I thank the Governor for her continued partnership.”

Assemblymember Steve Otis said, “The Mid-Hudson Momentum Fund is a pivotal program in support of important economic development projects in our region. This funding will be a critical assist for the awardees building dynamic projects in Port Chester and New Rochelle. Thanks go to Governor Kathy Hochul, Empire State Development President, CEO & Commissioner Hope Knight, the Senate, and Assembly for making this vital funding stream possible.”

Assemblymember Jonathan Jacobson said, “The only way to solve the crisis of the lack of housing is to build more housing. I applaud the Governor's Momentum Fund to build more housing in the Mid-Hudson Valley. I was proud to support this vital program in the State Budget.”

Westchester County Executive Ken Jenkins said, “I want to thank Governor Hochul for her leadership in addressing the housing crisis across New York State. Here in Westchester County, we are working hard to build more affordable housing, and the Momentum Fund investment is a game-changer in increasing the number of people who will have a warm place to call home. This funding will help develop 2,000 new affordable housing units in the Hudson Valley. It’s not just about constructing buildings—it’s about creating vibrant, equitable communities where everyone has the opportunity to thrive, now and for generations to come.”

Yonkers Mayor Mike Spano said, “Thank you to Governor Hochul and the State Delegation for tackling housing and making it a priority, especially here in Yonkers. As Mayor of the third largest city in New York State, the importance of transit oriented development allows our residents and families accessibility to an even greater quality of life.”

The Mid-Hudson Momentum Fund continues to prioritize localities demonstrating their commitment to sustainable growth through Governor Hochul's Pro-Housing Communities program. Communities actively streamlining permitting processes and adopting pro-development policies receive priority for discretionary state funding. Nine of the ten projects receiving funding today are located in certified Pro-Housing Communities, and the remaining project is located in the Village of Monticello, which has submitted a Letter of Intent to become certified.

Governor Hochul introduced the $150 million Mid-Hudson Momentum Fund in 2023 as part of her comprehensive effort to increase New York’s residential supply, address housing affordability, and stimulate sustainable regional growth. Selected projects align with the Mid-Hudson Regional Economic Development Council’s strategic plan, demonstrating public support, providing affordable units, and enhancing infrastructure to facilitate increased housing density. Across both funding rounds, the program has now invested more than $127 million in projects spanning all six Mid-Hudson counties demonstrating the Fund's regional impact and comprehensive approach to addressing development challenges throughout the Mid-Hudson Valley. These projects will unlock more than 10,600 housing units, including more than 3,400 affordable units.

“The second round of Mid-Hudson Momentum Fund awards reflects our proactive approach to addressing New York's critical housing shortage while strengthening the infrastructure needed for thriving, resilient communities."

Governor Kathy Hochul

Round II Award Recipients:

• $10 million for Kiryas Joel Water Treatment Facility Implementation Project (Orange County) – The final component of the multi-phased Catskill Aqueduct Connection Project, this new water treatment facility will secure the stable water supply essential for numerous new housing developments to proceed. The project enables the village to convert existing wells to backup systems, removing a critical barrier to housing growth and creating 5,229 units, including 1,047 affordable units. The total project cost is more than $52.5 million.
• $10 million for Town of Ramapo Infrastructure Improvements (Rockland County) – Critical infrastructure upgrades including approximately two miles of new sewer piping and a new water main serving underserved northeastern areas. These improvements will address water supply and sanitary sewer deficiencies that currently prevent housing and commercial development from moving forward. With a total project cost of $20 million, this project will unlock 1,196 units, including 296 affordable units.
• $10 million for Westchester Crossing (Westchester County) – Infrastructure development at the former United Hospital site in Port Chester, including new water, sewer and stormwater management systems plus roads and sidewalks. The project will support future mixed-use development with residential and senior living with 975 housing units, including 87 affordable units and a total project cost of $25.4 million.
• $7.5 million for Bridgewater North at Ludlow Station (Westchester County) – A transit-oriented mixed-use development in Yonkers featuring 208 new apartments, including 21 affordable apartments, ground floor retail, spa, and parking garage. The project includes a comprehensive Community Benefits Program revitalizing O'Boyle Park and creating the new Bridge Street Park and Promenade. The total project cost is nearly $113 million.
• $5 million for QWest (Westchester County) – A downtown revitalization catalyst in Mount Vernon replacing abandoned gateway buildings with two new structures containing residential units and commercial space. The development includes a parking structure supporting increased density within the city's transit-oriented development zone. With a total project cost of more than $158 million, this project will unlock 228 housing units, including 228 affordable units.
• $5 million for Stella Phase II (Westchester County) – A transformative mixed-use development near New Rochelle's Metro-North station featuring 126 affordable condominium units with modern amenities and the city's first affordable dental clinic. With a total project cost of more than $100 million, this fully electric, LEED-certified project will be Westchester County's first high-rise affordable condominium in decades.
• $4.2 million for Shaw Building Redevelopment (Orange County) – Historic warehouse renovation in Newburgh's Liberty Street Neighborhood creating vibrant mixed-use space with 53 apartments, including 5 affordable apartments and commercial units including a gym, restaurant, and art studios. The adaptive reuse project is within walking distance of the Historic Newburgh Waterfront. The total project cost is nearly $22 million.
• $3.75 million for The Abbey on Park (Westchester County) – A mixed-income housing development in Yonkers with 81 affordable apartments across three buildings, combining adaptive reuse and new construction. Infrastructure improvements include parking garage enhancements, accessibility upgrades, drainage improvements, and green renewable technology integration. The total project cost is nearly $58 million.
• $2.5 million for Monticello Manor Lofts (Sullivan County) – Infrastructure improvements supporting new mixed-use, transit-oriented development with 76 residential units, including specialized housing for individuals with disabilities and traumatic brain disorders. With a total cost of nearly $37 million, this project includes water system upgrades, road and sidewalk improvements, green technology, and brownfield site remediation.
• $2.5 million for Quality Inn Conversion (Ulster County) – This building conversion of the former Quality Inn hotel will result in 83 affordable housing units, and commercial spaces including a therapeutic swimming pool, supportive services offices, and a community room. The former restaurant will be renovated to contain a child daycare and a commissary kitchen. The total cost of the project is more than $41 million.

Governor Hochul’s Housing Agenda
Governor Hochul is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY 2026 Enacted Budget, Governor Hochul secured more than $1.5 billion in new state funding for housing statewide, including investing $100 million for Pro-Housing Communities to fund critical infrastructure projects to support housing development, $100 million to promote mixed income housing development, $50 million for the first year of the Housing Access Voucher Program to address households that are homelessness or at risk of imminent homelessness, and $50 million for building more affordable starter homes, among other housing initiatives. As part of the FY 2025 Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives, capital funding, and new protections for renters and homeowners. In addition, as part of the FY 2023 Enacted Budget, the Governor announced a five-year, $25 billion 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. Nearly 60,000 homes have been created or preserved to date.

The FY 2025 Budget also strengthened the Pro-Housing Community Program which the Governor launched in 2023. Pro-Housing certification is now a requirement for localities to access up to $650 million in discretionary funding. Currently, more than 300 communities have been certified.