Hochul: Apply for $50 million restore New York program

Program designed to combat municipal blight and spark new investments; will prioritize projects addressing damage from July 15-16 Storms

√ Letters of intent due by Wednesday, Oct. 23 – more information will be available here 

√ Webinar for potential applicants scheduled for Wednesday, Sept. 25 – register here

Press Release

Gov. Kathy Hochul recently announced that applications for the $50 million Round 9 of the Restore New York Communities Initiative grant program will launch Monday, Sept. 23. The funding, which was included as part of the FY25 enacted budget, supports municipalities’ efforts to demolish, rehabilitate and restore blighted structures and transform them into vibrant residential, commercial, and mixed-use developments. The program is administered by Empire State Development and, in this round, priority will be given to projects designed to address recovery efforts related to tornado and storm damage that occurred July 15-16.

“We are revitalizing communities across New York state through the Restore New York Communities Initiative – giving towns and cities the chance to build a future that is safer, more affordable, and more livable,” Hochul said. “With upstate municipalities still working to recover from major damage caused by July’s extreme weather, we’re prioritizing those projects and looking to other transformational opportunities that will better the lives of residents and businesses everywhere.”

The goal of Restore New York is to help municipalities attract residents and businesses by redeveloping residential, commercial, and mixed-use properties. Each project should align with the strategic plan of the community's Regional Economic Development Council, and projects should be either architecturally consistent with nearby properties or the municipality's local revitalization or urban development plan. Communities interested in applying are encouraged to register here for ESD’s instructional webinar, scheduled for Wednesday, Sept. 25. An intent to apply form must be received by ESD by Wednesday, Oct. 23. The program application and guidelines will be available today at https://esd.ny.gov/restore-new-york.

ESD President, CEO and Commissioner Hope Knight said, “Restore New York is a pillar of Gov. Hochul’s community revitalization efforts and promotes projects that address urban decay to promote vibrant neighborhoods and new and dynamic housing. The funding awarded to municipalities through this program is vital to generating new investments that welcome visitors and new residents and support regional economic growth.”

Restore New York grants can be used for vacant, abandoned, condemned or surplus buildings, and these properties can be demolished, deconstructed, rehabilitated or reconstructed. Emphasis will be placed on projects in economically distressed communities, projects that leverage other state or federal redevelopment funds, and the project's feasibility and readiness. Eligible applicants include counties, cities, towns and villages within New York based on the following criteria:

√ Cities with populations over 100,000 may apply for up to $2 million for one project. However, cities with populations exceeding 1 million residents and counties therein must apply for projects in a distressed area of the city.

√ Cities and villages with populations between 40,000 and 99,999 may apply for one project up to $1.5 million.

√ All other municipalities may apply for one project, up to $1 million.

√ The amount for which a county is eligible to apply is based upon the municipality within which the project is located.

ESD may award a limited number of special project designations. Municipalities and counties with populations of 1 million or less residents per the latest census may apply for an additional $3.5 million for either a second project, or as part of a larger project in addition to the program's funding limits. Special projects are those where the property causes severe economic injury to the community, leaving a highly visible and blighted property, or properties in the central business district of a highly or moderately distressed community, which creates a depressing effect on the overall economic development potential of the community.

In July, Hochul announced more than $64.1 million in Restore New York grants was awarded to support 43 projects across nine regions of the state. Round 8 included a $10 million special project designation to support the demolition of Albany's Central Warehouse. These projects complement Hochul’s economic development vision by making strategic investments in communities across the state that revitalize the economy and create more opportunities for New Yorkers. The FY25 enacted budget also includes $100 million for the Downtown Revitalization Initiative and $100 million for NY Forward. These programs help local municipalities promote quality of life, foster socioeconomic development, and create more walkable, livable, and safer neighborhoods in every corner of the state.