Governor Hochul Announces Guidelines for $200 Million in Strategic Investments to Revitalize Downtown Albany

Governor Kathy Hochul today announced the release of program guidelines for the $200 million in new investments to revitalize downtown Albany as part of her broader Championing Albany’s Potential Initiative. The funding, detailed in the Downtown Albany Strategy released last week, will support catalytic redevelopment projects, expand housing opportunities, and strengthen community assets—helping transform the city’s core into a reinvigorated and more vibrant, dynamic destination. Applications will be opening in the coming weeks and will be available here.

“New Yorkers deserve a world-class capital city, and my CAP Initiative is delivering the transformational change Albany needs,” Governor Hochul said. “These high-impact investments will drive growth, create housing, strengthen neighborhoods, and reimagine public spaces—making downtown a place where our families, visitors, and businesses will thrive.”

Empire State Development President, CEO & Commissioner Hope Knight said, “Our strategy of targeting investments in these three areas are key to revitalizing downtown Albany and strengthening the Capital Region’s economy more broadly. By aligning public and private resources, we’re expanding housing, activating public spaces, and driving long-term growth that benefits residents, businesses, and visitors—advancing Governor Hochul’s vision for a stronger, more competitive capital city.”

The ESD Board approved funding for three targeted investment programs:

Transformative Projects Fund — Up to $120 Million

The Transformative Projects Fund will invest up to $120 million in significant, catalytic projects designed to deliver lasting economic and community impact. These investments will help reestablish activity in key areas, enhance public spaces, and reshape how downtown Albany is experienced by residents, workers, and visitors.

Housing Investment Fund — Up to $40 Million

The Housing Investment Fund will provide up to $40 million in grants to support new housing creation projects. These investments will expand housing supply, encourage private-sector development, return underutilized sites to productive use, facilitate commercial-to-residential conversions, and help address Albany’s housing shortage.

Community Investment Fund — Up to $40 Million

The Community Investment Fund will dedicate up to $40 million for community-oriented and placemaking projects. These investments will revitalize commercial corridors, activate public spaces, strengthen neighborhood connections and amenities, and create lasting community assets that enhance downtown’s quality of life.

New York State Office of General Services Commissioner Jeanette Moy said, “These intentional funding opportunities announced today are vital to building more affordable housing, welcoming public spaces, and strong community connection throughout our capital city. OGS is proud to be part of Governor Hochul’s CAP initiative and lead the Reconnect the Empire State Plaza project that will bridge this iconic government complex to surrounding neighborhoods. These targeted investments are key in strengthening Downtown Albany's future as a vibrant hub for living, working, and visiting.”

New York State Department of Transportation Commissioner Marie Therese Dominguez said, “The targeted investments outlined in Governor Hochul’s Championing Albany’s Potential Initiative will put the revitalization of our Capital City into high gear. Together with NYSDOT’s transformative projects like the new Livingston Avenue Bridge and the re-imagining of the Interstate 787 corridor, these investments championed by Governor Hochul represent a once-in-a-generation opportunity to craft a brighter future for downtown Albany and create an even more spectacular place for people to live and work.”

State Senator Patricia Fahy said, “As I like to say, Albany isn't just turning the page on a new chapter in its history — we're writing an entirely new book as we look to the future. Revitalizing Downtown Albany, the core of our Capital Region, begins with three key tenets: building more housing units that are truly accessible and affordable to address the housing crisis, turning the lights back on for downtown's small businesses and creating a destination-location, and investing in community improvements and upgrades for downtown's neighborhoods, including redeveloping Liberty Park. Thanks to the transformative $400 million we secured last year, a new day for Albany is dawning, and I want to thank Governor Hochul, my legislative colleagues, Capital Region delegation, Mayor Applyrs, and former Mayor Sheehan for their continued partnership. Albany's future is bright, and I encourage everyone to get involved, make their voices heard, and continue to follow the progress on downtown Albany's transformation.”

Assemblymember John T. McDonald III said, “The Championing Albany Potential (CAP) initiative is entering an exciting new phase as the community-driven Downtown Albany Strategy advances from ideas and concepts to implementation. This transformative program prioritizes tripling downtown residential opportunities, boosting tourism, and making critical streetscape improvements, steps designed to catalyze private sector investment that builds on strong public commitment. As this competitive process begins, I am confident it will drive meaningful investment in downtown Albany, strengthening both our Capital City and the entire Capital Region.”

Assemblymember Gabriella A. Romero said, “Today’s approval of $200 million through the Championing Albany’s Potential Initiative represents a bold and meaningful commitment to the future of our capital city. By investing in transformative redevelopment projects, expanding much-needed housing, and strengthening the community assets that make our downtown unique, we are taking concrete steps to reenergize Albany’s core. These targeted funds will help bring underutilized spaces back to life, support small businesses, and create new opportunities for residents and families. I look forward to continuing this exciting partnership with Governor Hochul and Empire State Development to ensure these investments deliver lasting, equitable growth for our community.”

Albany County Executive Daniel P. McCoy said, “We’ve seen meaningful public and private investment take root downtown, and this $200 million will help scale those efforts in a smart, coordinated way. By focusing on transformative projects, housing, and community-driven improvements, we’re tackling revitalization from every angle. I’m grateful to Governor Hochul for this commitment, which will help us create a vibrant, modern downtown for residents, businesses, and visitors alike.”

City of Albany Mayor Dr. Dorcey Applyrs said, “This next phase of the Championing Albany’s Potential initiative moves us from strategy to action. With clear guidelines and $200 million in targeted funding, we now have a structured path to advance transformative projects, expand housing, and strengthen community spaces in the heart of our city. These funds will support redevelopment, return underused sites to productive use, and activate public spaces in ways residents can see and feel. Each program is designed with accountability and measurable outcomes in mind. Through competitive processes and strong public and private partnership, the Governor is positioning downtown Albany for sustained growth, stronger neighborhoods, and renewed energy that benefits residents, businesses, and visitors alike.”

By building on and amplifying other private and public investments in housing and redevelopment, these community projects will help generate renewed energy and engagement throughout downtown, positioning Albany as a more vibrant and appealing destination for small businesses, residents, and visitors alike.

Projects supported through these funds will be selected through competitive processes and evaluated based on their potential to drive economic activity, expand housing, enhance public spaces, and deliver measurable community benefits.

For more information about the CAP Initiative including the Downtown Albany Strategy and funds outlined above, and other Empire State Development programs and initiatives, visit esd.ny.gov.