Update: NY Opens $76M Third Round of County Infrastructure Grants

Update: New York has opened a third round of its County Infrastructure Grant Program with $76 million available and higher per-project caps for infrastructure that supports new housing, Gov. Kathy Hochul announced on October 16. Letters of intent come first, and final applications are due February 5, 2027 Office of the Governor of New York.

This post updates our earlier coverage of the second round of awards in Western New York and the Finger Lakes. The new development is the opening of round three with larger award limits.

What Happened

The program, administered by Empire State Development (ESD), funds county-led infrastructure projects in small and medium-sized counties that encourage housing growth, placemaking and tourism Office of the Governor of New York. Stephen J. Acquario, executive director of the New York State Association of Counties, pointed to water, sewer and road infrastructure as typical examples.

For round three, the state raised the maximum award by $500,000 in both categories Office of the Governor of New York:

• Projects directly supporting at least 10 new housing units: up to $1.5 million, up from $1 million.
• Projects supporting fewer than 10 units: up to $1 million, up from $500,000.

How to Apply

Counties must submit a letter of intent before filing a final application. Program guidelines, the letter of intent, the application and webinar details are posted on ESD's program page, and ESD plans a webinar for counties in mid-November Office of the Governor of New York. The final application deadline is Friday, February 5, 2027. The announcement did not describe a per-county allocation formula.

Where the Money Comes From

The program started with $50 million in the FY25 enacted state budget, and another $50 million was added in each of the FY26 and FY27 enacted budgets Office of the Governor of New York. Through its first two rounds, the program has awarded more than $74 million to nearly 100 projects that support nearly 6,000 new homes. With $150 million appropriated in total, the $76 million now on offer is essentially the balance of the three budget allocations.

What Officials Said

"Modern infrastructure is the foundation of vibrant communities and strong local economies," Hochul said Office of the Governor of New York. Homes and Community Renewal Commissioner RuthAnne Visnauskas said counties play "a critical role in delivering the modern infrastructure that makes housing growth possible," and Acquario noted that in two rounds the program has funded nearly 100 projects.

Assemblymember Al Stirpe tied the program to housing demand in Central New York, citing the arrival of Micron and the supply chain companies expected to follow Office of the Governor of New York. State Sen. April N.M. Baskin and ESD President, CEO and Commissioner Hope Knight also spoke in support.

What Earlier Rounds Funded

The first two rounds show what kind of work this money buys: water mains, sewer laterals, vaults, electrical service and roadway work that make specific housing projects feasible. In Rochester, for example, round two included $1 million for infrastructure at the Hotel Cadillac and Fine Arts Building lofts. The higher caps in round three increase what a single award can cover on projects of 10 or more units, which matters as utility and site costs continue to climb.

Implications for Owners, Developers, Contractors and Subs

• Developers should talk to their counties now. Because counties are the applicants, housing developers with stalled projects that need water, sewer or road upgrades should bring them to county planning and public works staff before letters of intent are due.
• The 10-unit threshold matters. Projects with at least 10 new homes qualify for the higher $1.5 million cap. Owners near that line may want to look at unit counts early in design.
• Site and utility contractors benefit. Awards go to horizontal infrastructure such as water, sewer and roads, so civil, underground utility and paving contractors in smaller counties will see the most direct work, with building trades following once housing can proceed.
• Expect projects in 2027 and beyond. With applications due in February 2027, awards and construction would follow later, so this is pipeline work rather than near-term bidding.

What to Watch

• ESD's mid-November webinar and any clarifications to eligibility.
• Letters of intent from Finger Lakes, Western New York and Central New York counties.
• The February 5, 2027 deadline and the timing of round three awards.
• Whether future state budgets add money beyond the three $50 million allocations.

Bottom Line

Round three puts $76 million behind the unglamorous utility and road work that often decides whether housing gets built in smaller New York counties, and the higher caps make each award go further on projects of 10 or more homes.

Related Coverage

• $38M State Grant Round Funds WNY and Finger Lakes Infrastructure Tied to Housing
• $1M State Grant Closes Infrastructure Gap on $21M Hotel Cadillac Conversion
• Greece Gets $5 Million to Buy Mall Land for Senior Housing

Image credit: Office of the Governor of New York, construction hard hat. Image from the source article.

Sources

• Office of the Governor of New York, "Governor Hochul Announces $76 Million Available for Third Round of County Infrastructure Grant Program": https://www.governor.ny.gov/news/governor-hochul-announces-76-million-available-third-round-county-infrastructure-grant-program