Construction Starts to Transform Former Bayview Correctional

Governor Kathy Hochul today announced the start of construction of Chelsea Beacon, which will transform the former Bayview Correctional Facility into a vibrant affordable housing and community hub in Manhattan’s Chelsea neighborhood. The project will create up to 131 permanently affordable homes, including at least 79 supportive housing units. Additionally, the project will include a 15-bed Short-Term Transitional Residence Program and space dedicated to providing services for the community including recreational and educational youth programming.

“The start of construction of Chelsea Beacon represents exactly the kind of bold, innovative project New York needs as we work to tackle our housing shortage and build stronger communities,” Governor Hochul said. “By transforming a long-vacant State property into permanently affordable homes, supportive housing and welcoming community space, we are creating new opportunities for New Yorkers to live, work and thrive. This project demonstrates how we can reimagine underutilized public assets to deliver lasting benefits across our state.”

Empire State Development President, CEO and Commissioner Hope Knight said, “Chelsea Beacon demonstrates how thoughtful public investment and strong partnerships can transform an underutilized property into a lasting community asset. Through the adaptive reuse of this historic building, the project will expand affordable housing opportunities, deliver critical services and strengthen Chelsea’s economic future. Chelsea Beacon reflects Empire State Development’s commitment to creating projects that honor a community’s history while meeting its needs for generations to come.”

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Chelsea Beacon represents a major investment in housing, in the local economy, and in the entire community. It will create affordable apartments for 130 households and ensure residents have the support they need to live independently. This project would not have been possible without Governor Hochul's laser-focus on bringing new life to unused State sites like the Bayview Correctional Facility. We thank our partners at Empire State Development, the Office of Mental Health, and the entire development team for your commitment."

Office of Mental Health Commissioner Dr. Ann Sullivan said, “Maintaining safe and secure housing is crucial for individuals living with mental illness as they recover. In this reimagined space, Chelsea Beacon will offer intensive services to residents via 15 Short-Term Transitional Residence beds. During a 120-day period, individuals will receive support including skills-building before moving to more independent housing. Thanks to Governor Hochul’s sustained investments in providing mental health support for anyone who needs it, New Yorkers are able to thrive within their community.”

U.S. Representative Jerry Nadler said, “The start of construction on Chelsea Beacon is the beginning of a new era for this former women’s prison in Chelsea on the far west side. New Yorkers are facing an urgent housing crisis that is even worse for formerly incarcerated individuals. I am proud to have supported this project from its inception, and I look forward to the transformation of Bayview Correctional into an affordable housing complex and community hub. This project is an apt model for public-private partnerships to address the housing crisis and provide much-needed services to residents and local community members.”

State Senator Erik Bottcher said, "The transformation of the former Bayview Correctional Facility into permanently affordable housing and community space is exactly the kind of bold investment our city needs. For too long, this site stood as a reminder of the past, but it will soon become a place where New Yorkers can build their futures. I’m grateful to Governor Hochul, Empire State Development, Community Board 4 and all of our partners for advancing deeply affordable and supportive housing while providing vital community services. Chelsea Beacon demonstrates what is possible when we reimagine public assets to meet today’s greatest challenges. I look forward to seeing this project become a cornerstone of the Chelsea community for generations to come."

Assemblymember Tony Simone said, "New York is in a housing crisis at every level. I'm proud to see Governor Hochul lead our state in recognizing the critical need to increase the supply of housing by utilizing state resources in some of the hardest to build neighborhoods. Chelsea Beacon will provide not just new homes and supportive services, but also needed units to tackle the mental health crisis, moving the west side forward."

Manhattan Borough President Brad Hoylman-Sigal said, “The redevelopment of the former Bayview Correctional Facility into 131 permanently affordable homes at Chelsea Beacon is the kind of direct support we require from the government to help address the housing affordability crisis. I heartily applaud Governor Hochul, Empire State Development, and New York State Homes and Community Renewal for their leadership in delivering this project — including 79 units of supportive housing, 8,500 square feet of community space, and a thoughtful preservation of this building’s historic character, especially for getting this effort back on track from a previous administration. I’m also grateful to Community Board 4 for their strong support and lengthy involvement in this effort, which shows local communities in Manhattan are willing to do their part to help provide housing for the most vulnerable in our population.”

Council Member Carl Wilson said, “Chelsea Beacon is an important investment to our community, one that will bring forward permanently affordable housing, supportive services, and a valuable community space to Chelsea. As we continue to address the housing crisis, New Yorkers deserve more thoughtful development that meets the needs of our City - the kind that transforms vacant properties into homes where individuals and families can create long-term stable futures. I commend Governor Hochul and all of the partners for their commitment towards progressing our city forward while preserving an important piece of our city’s history. I look forward to seeing the lasting positive impact Chelsea Beacon will have on our community for many more years to come.”

Urban Pathways CEO Gary P. Jenkins said, "At Urban Pathways, we believe every New Yorker deserves the opportunity to live in safe, stable, and affordable housing. We commend Governor Hochul, Empire State Development, NYS Office of Mental Health, NYS Homes and Community Renewal, and the project partners for bringing Chelsea Beacon to life through the thoughtful reuse of a historic property that will create both affordable homes and supportive services. Expanding the supply of quality affordable housing is essential to addressing homelessness, as is bridging the gap from the street to short-term transitional programs like the one OMH has funded here, which Urban Pathways will own and operate; we are proud to stand alongside those working to make that vision a reality."

Camber Property Group Principal Rick Gropper said, “Chelsea Beacon represents the best that you can ask for in a development project. Solving the housing crisis requires reimagining existing buildings like Bayview into opportunities like Chelsea Beacon, which will provide deeply affordable housing in one of the city's most sought-after neighborhoods. This true public-private partnership was developed by engaging stakeholders and partners at all levels from Governor Hochul, NYS Homes and Community Renewal, Empire State Development and the Osborne Association, to Manhattan Community Board 4. We applaud and share our partners’ commitment to serving our city’s most needy and vulnerable."

Osborne Association President and CEO Jonathan Monsalve said, "Chelsea Beacon will rise up as a place of hope and welcome for New Yorkers coming home from incarceration to safe and stable housing. Osborne is proud to provide the comprehensive reentry services that we know can stabilize formerly incarcerated people, help them build the skills for successful futures, and contribute to their community. We thank Governor Hochul, NYS Homes and Community Renewal, and Empire State Development for this opportunity, and look forward to creating both a haven and a hub for the community with Camber and other partners."

Manhattan Community Board 4 Chair Leslie Boghosian Murphy said, “The former Bayview Correctional Facility has long been identified by our Community Board as a location for potential affordable housing. There is no better example of our priorities than transforming a former women’s prison into accessible and supportive housing. It is not by chance that our district is one of the tops in all of the city to develop this type of housing and we thank the Governor for recognizing the need and being a great partner in this endeavor.”

Originally constructed in the early 1930s as the Seamen’s House YMCA, the property later served as the Bayview Correctional Facility before closing following Hurricane Sandy in 2012. Vacant for more than a decade, the site will now be transformed into Chelsea Beacon through the adaptive reuse of the historic structure and construction of a new addition within the building’s interior courtyard.

Apartments at Chelsea Beacon will be affordable to households earning up to 80 percent of the Area Median Income. There will be at least 79 supportive housing units, along with approximately 8,500 square feet of community facility space.

Chelsea Beacon will also include a 15-bed Short-Term Transitional Residence, a new program that provides individuals living with mental illness intensive support as they build skills over a 120-day period before moving to a more independent housing setting.

The redevelopment represents an investment of more than $167 million and will advance Minority- and Women-Owned Business Enterprise and Service-Disabled Veteran-Owned Business participation goals while supporting local hiring throughout construction.

The project will preserve the building’s historic character while incorporating modern sustainability and resiliency features, including all-electric building systems. Historic architectural elements, including the building’s chapel, will be restored and incorporated into the redevelopment.

New York State Homes and Community Renewal is supporting the project through the issuance of $39.6 million in Federal tax-exempt bonds which will generate $70.5 million in Low-Income Housing Tax Credit equity, as well as State Low-Income Housing Tax Credits which are expected to generate $6.7 million in equity, and $25 million in capital subsidy. Empire State Development is supporting the program with $20 million from its NY RUSH program.

The project is additionally supported by $13.86 million in capital funding from the New York State Office of Mental Health (OMH), part of Governor Hochul’s transformative $1 billion investment in strengthening the mental health system included in the FY24 Budget. Operating expenses for the supportive units are funded through an Empire State Supportive Housing Initiative award administered by OMH.

About Empire State Development

Empire State Development is New York's chief economic development agency, and promotes business growth, job creation, and greater economic opportunity throughout the state. With offices in each of the state's 10 regions, ESD oversees the Regional Economic Development Councils, supports broadband equity through the ConnectALL office, and is growing the workforce of tomorrow through the Office of Strategic Workforce Development. The agency engages with emerging and next-generation industries like clean energy and semiconductor manufacturing looking to grow in New York State, operates a network of assistance centers to help small businesses grow and succeed, and promotes the state's world class tourism destinations through I LOVE NY. For more information, please visit esd.ny.gov, and connect with ESD on LinkedIn, Facebook and X.

Governor Hochul’s Housing Agenda

Governor Hochul is dedicated to addressing New York’s housing crisis and making the State more affordable and livable for all New Yorkers. Since FY23, the Governor has worked to increase housing supply to make housing more affordable by launching a $25 billion five-year comprehensive Housing Plan, enacted the most significant housing deal in decades, implemented new protections for renters and homeowners and secured a $500 million capital fund to develop up to 15,000 new homes on underutilized state-owned property.

Governor Hochul’s “Let Them Build” agenda will speed up housing and infrastructure development while lowering costs through a series of landmark reforms. Common-sense changes to New York’s Environmental Quality Review Act (SEQRA) in the FY 2027 Enacted Budget as well as executive actions will expedite critical categories of projects that have been consistently found to not have significant environmental impacts, but for too long have been caught up in red tape and subject to lengthy delays.

The enacted FY27 budget completes the Governor’s current five-year Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations plus the electrification of an additional 50,000 homes. More than 81,000 affordable homes have been created or preserved to date. The Budget also invests $250 million in capital funding to accelerate the construction of thousands of new affordable homes. The enacted FY27 budget also further reinforces critical protections for tenants and homeowners.