New York is now accepting applications for $225 million in grants aimed at fixing the drinking-water, sewer and stormwater systems that have been standing in the way of new housing. The Clean Water for Housing Program includes $175 million available to communities statewide, plus another $50 million set aside specifically for rural municipalities, and the money will go out on a first-come, first-served basis until it runs out.
Gov. Kathy Hochul announced the program Friday, October 23, according to uticaphoenix.net. A single project can receive up to $30 million, with the state covering as much as 75 percent of eligible costs, the outlet reports. As Fingerlakes1.com notes, the program is meant to help municipalities fund projects necessary for housing development, improvements or rehabilitation, or projects located within a certified pro-housing community.
Who Can Apply, and What the Money Can Fix
Eligible work spans the installation, extension, reconstruction or upgrade of public drinking-water, sewer and stormwater systems, per the same uticaphoenix.net report. To qualify, a project must address what the state calls a real capacity constraint — something actually blocking housing from being built, improved or rehabilitated, rather than a general infrastructure wish-list item. Eligible costs can include related planning, design, engineering, permitting and construction work.
Municipalities can submit more than one application, but per Fingerlakes1.com, no single municipality may receive more than two awards. Applicants generally must already be certified through the state's Pro-Housing Communities Program before receiving an award, though municipalities with complete certification applications pending may still apply, the same outlet reports. More than 460 communities statewide have been certified through that program, according to whec.com.
Private for-profit developers and nonprofit housing developers are not eligible to apply on their own — this is a municipal program, according to uticaphoenix.net. Applications must include a project description and budget, an engineering report, environmental review documents, and an explanation of exactly how the infrastructure constraint is affecting housing in that community, the outlet reports.
A Fast Timeline, With Help Available
The state wants the money moving quickly. Fingerlakes1.com reports the goal is for funded projects to begin construction within one year of receiving an award, with the related housing development, improvements or rehabilitation expected to begin within two years. For municipalities that need help navigating the paperwork, the Environmental Facilities Corporation's Community Assistance Teams offer on-site and virtual consultations to help with project planning and applications, per uticaphoenix.net.
The Clean Water for Housing Program isn't the only infrastructure money the state has moving right now. Fingerlakes1.com notes it's separate from $500 million in water-infrastructure grants the state announced earlier in the same week, as well as $45 million available through separate Green Resiliency Grants that the Environmental Facilities Corporation is also accepting applications for, according to uticaphoenix.net.
How It Fits Into the State's Broader Push
New York has been leaning on infrastructure grants to chip away at its housing shortage through several channels at once. The state's County Infrastructure Grant Program, administered by Empire State Development and created in the fiscal 2025 budget, has already pushed out more than $74 million to nearly 100 projects across its first two rounds, according to a separate Fingerlakes1.com report — including a second round that alone awarded more than $38 million to 49 projects statewide. That program offers grants of up to $500,000 for broader economic development work, with enhanced awards up to $1 million specifically for infrastructure tied to housing developments of at least 10 units.
Communities interested in checking certification status or housing data can consult the state's Pro-Housing Community Program dashboard, maintained by New York's division of Homes and Community Renewal, which tracks certified communities, pending letters of intent and municipal housing statistics. With funding awarded on a rolling basis, officials are signaling that municipalities with shovel-ready water and sewer problems holding back housing shouldn't wait to get their applications in.
