Governor Hochul Announces Request for Proposals to Redevelop Six Acres on Mohawk Valley Psychiatric Center Campus for Residential Development

Proposals Must Include Supportive and Affordable Housing

Represents Latest in Governor's Commitment to Redeveloping Underutilized State-Owned Properties

Governor Kathy Hochul today announced the launch of a competitive Request for Proposals (RFP) for the redevelopment of six acres of property located within the Mohawk Valley Psychiatric Center Campus in Utica, Oneida County. The 6.13-acre site is part of the 119-acre campus that encompasses the old Utica State Hospital and the former Marcy State Hospital. The RFP is seeking respondents who will transform the underutilized state-owned property into supportive and affordable housing, further advancing Governor Hochul's bold housing agenda. Responses are due by February 1, 2027.

"We are committed to giving state-owned properties a new life as we address New York's housing needs while creating new opportunities for communities to thrive," Governor Hochul said. "By launching this redevelopment process in the City of Utica, my administration is taking another step forward in expanding access to supportive and affordable housing while transforming underutilized land in the Mohawk Valley."

Respondents are invited to propose a development plan with both affordable and supportive housing, along with space for supportive services, if feasible. Plans should include at least 50 units of supportive housing for people with serious mental illness, and approximately 100 additional units of affordable housing. This RFP is expected to award capital funding from the Office of Mental Health (OMH) for the construction of the supportive housing units; however, operating funding is not available through this procurement.

Proposals must also address the demolition of existing buildings and infrastructure improvements necessary to facilitate the development. As part of Governor Hochul's $500 million Redevelopment of Underused Sites for Housing (NY-RUSH), funding is available to offset associated costs. First secured by the Governor in the FY25 Enacted Budget, the NY-RUSH initiative is designed to accelerate the development of housing by building on underutilized state properties.

Empire State Development President, CEO and Commissioner Hope Knight said, "Under Governor Hochul's leadership, New York State is taking bold steps to transform underutilized properties into vibrant, community-centered assets. By launching this RFP, we are not only breathing new life into a historic Utica campus, but we are also delivering on our commitment to creating the affordable and supportive housing that New Yorkers need to thrive."

Read the full press release here.