To address these and other housing challenges — as documented through comprehensive planning and housing data analysis — Tompkins County, in the Southern Tier region of upstate New York, came together with the City of Ithaca and Cornell University to create the Community Housing Development Fund (CHDF). The fund aims to support affordable housing development in the county and serves as a strong example of how local governments can partner with large employers to tackle housing issues. This unique partnership also illustrates how local funding can be effectively used to leverage additional state-level and other funding sources for income-restricted housing development.
Key takeaways
- Local institutions and employers can be major partners in local programs for income-restricted housing. Under the Memorandum of Understanding (MOU) that governs the CHDF, Cornell University, Tompkins County’s largest employer, contributes $200,000 annually to the fund.
- Local funding sources allow affordable developers to leverage other funds. Ithaca Neighborhood Housing Services, a major nonprofit affordable housing developer in Tompkins County and the surrounding Central New York region, received $2.1 million in funding from the CHDF between 2009 and 2019. This support enabled the nonprofit to unlock roughly $100 million in funding from the federal government, the State of New York, and various private investors and financial institutions.
- Counties and their municipalities can effectively coordinate on regional housing challenges. A key strength of the CHDF is the collaboration between Tompkins County and the City of Ithaca. More recently, this partnership has been strengthened by the Town of Dryden and the Town of Ithaca joining the program as Associate Members. Each municipality’s contributions for projects within its borders have played an important role in increasing funding and local support for affordable housing development throughout the county.
Description
Tompkins County is a county in upstate New York with a population of just over 100,000 residents. The county contains a mix of urban and suburban communities, including its county seat, Ithaca, and more rural areas. It is home to Cornell University – a major employer – with over 25,000 students and more than 11,000 employees. The county is also home to Ithaca College, which is smaller in size. Tompkins County faces housing supply constraints and a growing affordability crisis in which low-income renters are most severely impacted. Though incomes have risen 42 percent between 2013 and 2023, median home values have also increased by over 60 percent during the same time period. As of 2023, 54.8 percent of Tompkins County renters were housing cost-burdened, meaning they spent more than 30 percent of their income on rent. The rental vacancy rate was 3.2 percent in 2023, indicating a shortage of available rental housing units.
Following a multi-year planning process that included a comprehensive plan, a housing needs assessment, and a housing strategy, Tompkins County, the City of Ithaca, and Cornell University joined forces to fund the Community Housing Development Fund (CHDF) in 2009. The CHDF pools resources from Tompkins County, the City of Ithaca, and Cornell to support affordable housing development projects. Tompkins County and the City of Ithaca each contribute $100,000 to the fund every year, while Cornell contributes $200,000 annually. Since 2020, the Town of Dryden and the Town of Ithaca (distinct from the City of Ithaca) have become Associate Members of the fund, committing to contribute $50,000 to projects within their respective borders.
In 2020, the Tompkins County Industrial Development Agency adopted a Workforce Housing Policy. This policy requires developers with residential projects receiving agency incentives to either make 20 percent of units in the development affordable to moderate-income households (those earning up to 80 percent of the area median income, or AMI) or pay in-lieu fees that are allocated to the CHDF. For a purely market-rate development project, in-lieu fees are calculated by multiplying $5,500 by the total number of units. The first in-lieu contributions to the CHDF program were received in 2023.
The CHDF program is now in its third iteration of an MOU with the primary funding partners, which will remain in effect through 2027. Since its inception in 2009, the program has awarded $8,495,000 to support the construction of 1,032 units. Of these, 98 units were for sale, mainly in community housing trusts to maintain long-term affordability. The remaining 934 units were designated for rental, with most units leveraging 9 percent Low-Income Housing Tax Credit (LIHTC) awards, as CHDF awards enhance the competitiveness of their applications for tax credits.
Tompkins County manages the CHDF, providing planners and support staff to administer the program and its awards. Additionally, a program oversight committee selects projects to receive funding, with Cornell University, the City of Ithaca, and Tompkins County each appointing four members (including one alternate) and an optional non-voting ex officio member, as specified in the MOU. No decisions can be made without the participation of at least two voting members from each partner. The Town of Dryden and the Town of Ithaca, as Associate Members, only have voting rights on funding issues, not on programmatic matters. The program oversight committee appoints individuals with relevant expertise to an application review committee, which provides detailed recommendations for proposed projects. County leaders noted that ensuring staff capacity to manage the CHDF and its two committees has been a significant administrative lift, but they also praised the tangible results of the program in producing needed housing units.
Funds are distributed through a competitive application process. To qualify for support from the CHDF, project leaders must demonstrate experience working in housing development, specifically in affordable housing. Tompkins County staff said requiring developers to have affordable housing experience was a key lesson the CHDF team learned early on. This criterion enables applicants to leverage the significant amount of additional funding needed to support housing construction and rehabilitation beyond the awards provided by the CHDF. Staff also said they learned to be discerning and specific about the types of projects they wanted to fund. Initially, they offered pre-development grants and loans, but later shifted to construction grants as this use proved most effective for both the CHDF and developers. This evolution highlights how tailoring local funds to meet community priorities may be an iterative process that can change over time.
Process and timeline
- 2004: Tompkins County starts crafting its first comprehensive plan, which called for a housing needs assessment.
- 2005-2006: Tompkins County undergoes its first housing needs assessment.
- 2008: Tompkins County adopts its first countywide housing strategy.
- 2009: Tompkins County, the City of Ithaca, and Cornell University enter into a six-year Memorandum of Understanding (MOU) to fund the Community Housing Development Fund.
- 2015: The CHDF partners enter into a second six-year MOU.
- 2020: The Tompkins County Industrial Development Agency adopts a Workforce Housing Policy, which creates in-lieu fees that go towards the CHDF. The Town of Dryden joins as an Associate Member after making a one-time payment of $50,000, which was replenished after spend down.
- 2021: The CHDF partners enter their third six-year MOU, agreeing to contribute towards the fund through 2027. The Town of Ithaca joins as an Associate Member following a one-time contribution of $50,000.
Outcomes
Between 2009 and 2025, the CHDF funded the creation or rehabilitation of 1,032 income-restricted housing units. Homes that received funding could be for rent or for sale, but had to preserve affordability for a specified number of years. As of writing, up to $20,000 was available per rental unit affordable to households earning 81-100 percent AMI, and up to $30,000 was available for each rental unit affordable to households making 80 percent AMI or less, with a maximum of $300,000 per project. Owner-occupied units were eligible for up to $80,000 per unit, with a project cap of $400,000. Projects funded in the most recent 2025 round included eight for-sale homes protected by community housing trusts, a small three-unit supportive rental development for youth, and a 56-unit senior apartment building pursuing Low-Income Housing Tax Credits.
The local fund has allowed affordable development projects in Tompkins County to leverage additional state and federal funds. Since the program’s beginnings, CHDF awards have helped secure a conservative estimate of at least $347 million in other funding from various sources, including state and federal funding streams, and from private lenders. This translates to leveraging $41 in extra resources for every $1 awarded by CHDF, demonstrating the critical role of this funding in showcasing local support for projects. While some funding programs unlocked by developers are unique to New York State, many other states also encourage partnerships with municipal sources to tap into state funding opportunities.
Policy significance
The Community Housing Development Fund in Tompkins County offers several lessons for policymakers. First, it highlights the ability of local governments and employers to use plans and analysis to develop a shared and tangible commitment toward increasing housing supply at varying levels of affordability, which can help retain local employees. Engaging major employers and local governments in housing planning and strategies can be a significant way to gain funding and local support for housing projects. In this instance, local partners concerned about housing came together to inform Tompkins County’s planning and analysis efforts. This housing partnership developed a core network of people from the county, the City of Ithaca, and Cornell University committed to addressing the issues of insufficient housing supply and affordability for community members. By starting with a shared understanding of these challenges and options for addressing them, representatives from these partner organizations were able to work together towards a tangible solution through the CHDF.
Additionally, the CHDF demonstrates the power of a local public-private partnership to effectively use local funding to leverage other funding sources. By receiving funding from the CHDF, projects are not only supported locally but are also encouraged to seek further assistance through various programs, such as the federal Low-Income Housing Tax Credit (LIHTC), New York State’s Small Building Participation Loan Program, and the Affordable Homeownership Opportunity Program, among other public and private funding sources. This approach is beneficial because many state and federal programs prioritize communities that show their commitment to housing initiatives through local funding contributions, such as those provided by programs like the CHDF.
Additional resources
Tompkins County Planning & Sustainability – Housing. This Tompkins County webpage provides additional details on the CHDF and its operation.
Cornell extends support for county affordable housing. This press release from Cornell University celebrates the CHDF and highlights Cornell’s continued commitment to the partnership.
Community Housing Development Fund Celebrates 10 Years of Success. This 2019 article, published on the Ithaca Neighborhood Housing Services website, highlights INHS’s success in participating in the program and building new housing.
Tompkins County Industrial Development Agency – Workforce Housing Policy. This policy provides supplemental funding to the CHDF.
Notice of Funding Availability (NOFA). This notice, shared by the CHDF in 2025, provides additional information about the fund and how projects are chosen to receive funding.
Community Housing Development Fund Awards (2009-present). This complete list of awards illustrates in additional detail the variety of projects the CHDF has funded.