Governor Hochul Announces Construction Starting at $147 Million Affordable Housing Development in Poughkeepsie

Governor Kathy Hochul today announced the start of construction at Wallace Campus, a $147 million, 187-unit mixed-use affordable housing development in the city of Poughkeepsie, Dutchess County. The project, located on Main Street, includes the transformation of a vacant department store along with two new buildings. Under Governor Hochul's leadership, New York State Homes and Community Renewal (HCR) has created or preserved more than 9,000 affordable homes in the Hudson Valley, including more than 1,000 in Dutchess County. Wallace Campus continues this effort and is part of Governor Hochul's $25 billion five-year Housing Plan which is on track to create or preserve 100,000 affordable homes statewide.

"Wallace Campus will not only create new affordable housing opportunities on Poughkeepsie's Main Street Corridor, but will also bring new economic activity to the city and preserve an important piece of Poughkeepsie's history," Governor Hochul said. "This is more than an investment in a project; this is an investment in downtown Poughkeepsie and its future."

Developed by Mega Development Group and Ametrine Group, in partnership with on-site social services provider Mental Health America of Dutchess County, the development transforms the former Wallace Department Store into 69 apartments and creates an additional 118 units across two new buildings.

Wallace Campus will be affordable to households earning up to 80 percent of the Area Median Income and provides a mix of studios, one-bedroom units, two-bedroom units, and three-bedroom units. There will be 30 supportive units reserved for tenants eligible for on-site support services, which will include home health care management, community education, and family support and advocacy.

The development will include more than 22,000 square feet of ground-floor commercial retail space spread across all three buildings, continuing the legacy of the Wallace Department Store. The project is located on the northwest corner of Main and Catharine Streets, complementing the goals ofPoughkeepsie's Downtown Revitalization Initiative. This area offers easy access to public transportation, city services, retail, community service agencies, and dining close to the Poughkeepsie Metro North Train Station.

The Wallace Campus project advances historic preservation, adaptive re-use and the revitalization of Main Street. Originally constructed in the 1870s, the Wallace Department Store once operated as a major retail destination in Poughkeepsie until it closed in the 1970s. The building remained underutilized for decades and has been completely vacant since 2022. The project will preserve the limestone façade, existing stairways, and the ornate dome ceiling on the fourth floor.

The project will include a mix of hard-scape pathways with benches and other areas for public use, including a vibrant green space, and a new children's play area called Wallace Green that will feature year-round, community-driven programming that will be open to the public. Two of the buildings will have wraparound windows on their ground floors, helping connect the tenants with the green space.

There will also be a game room, fitness space, movie screening room, co-working space, study hall, and bike storage room in each building. The development includes fully-accessible and adaptable apartments. There are eleven units to accommodate residents with mobility impairments and five units to accommodate residents with sensory disabilities. The development will be all-electric, with ENERGY STAR appliances, low-flow plumbing, and motion sensors to limit unnecessary lighting usage.

Wallace Campus is supported by HCR's Federal Low Income Tax Credit Program, which is expected to generate $46 million in equity, its State Low Income Housing Tax Credit program, which is expected to generate $12.9 million in equity, $38 million from its Supportive Housing Opportunity Program, $5 million from its Middle-Income Housing Program, $2 million from its Rural and Urban Community Investment Fund. The project also benefits from $1.4 million from the Clean Energy Initiative funding, a partnership between HCR and the New York State Energy Research and Development Authority (NYSERDA). Empire State Development will provide $750,000 through its Regional Council Capital Fund Program.

The project is also supported by $2.2 million from the Dutchess County Housing Trust Fund and $540,000 from its HOME Investment Partnership Program. The site is participating in the New York State Department of Environmental Conservation's successful Brownfield Cleanup Program and, when completed, would be eligible for $14.6 million in tax credits administered by the New York State Department of Taxation and Finance. The New York State Office of Parks, Recreation and Historic Preservation is facilitating the use of approximately $8 million in federal historic tax credits and $5 million in state historic tax credits.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Wallace Campus will have a transformational impact on downtown Poughkeepsie and generations of current and future Poughkeepsie residents that projects like this attract and retain. When we see individuals and families moving into these 187 units and businesses opening doors, we'll see the historic Wallace Department Store revived and new life on the Main Street Corridor. This is the type of holistic and innovative project that HCR is committed to investing in under Governor Hochul's leadership."

Empire State Development President, CEO, and Commissioner Hope Knight said, "Wallace Campus brings affordable homes, new commercial space, and vibrant public green space to the heart of downtown Poughkeepsie - delivering on the goals of the Innovation District and strengthening the local economy. ESD is proud to support this revitalization as a model for creating opportunity in communities across New York State."

NYSERDA President and CEO Doreen M. Harris said, "The Wallace Campus revitalization project reflects New York's leadership in building affordable, energy efficient housing, while preserving the historic character that defines our communities. Transforming this former department store with modern, high-performance retrofits will help reduce energy usage for residents and create a more sustainable future for Dutchess County."

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, "New York State's Brownfield Cleanup Program is a vital tool that supports community revitalization across the state, helping clean up environmental pollution and support local economic development efforts. The Wallace Campus project in the City of Poughkeepsie is the latest example of how this successful cleanup program is helping advance Governor Hochul's continued efforts to increase affordable, sustainable housing statewide while protecting public health and the environment."

New York State Office of Parks, Recreation and Historic Preservation Acting Commissioner Kathy Moser said, "Reactivating an anchor historic building like the former Wallace Department Store helps bridge Poughkeepsie's past with its present in an exciting new way. Through use of historic rehabilitation tax credit programs, projects like this are creatively reimagining what is possible with our rich inventory of historic resources across the state. We're proud to be part of this work and applaud Governor Hochul's leadership in prioritizing safe and affordable housing for New Yorkers."

U.S. Senator Chuck Schumer said, "Every family in Poughkeepsie deserves a safe and affordable place to call home. I'm proud the federal Low-Income Housing Tax Credit I've fought hard to preserve and expand has delivered more than $46 million to convert an abandoned department store into 187 new homes for families in Dutchess County. High housing costs are a key driver of inflation so we must build more housing for working people to bring down those high prices. I commend Governor Hochul for creating and preserving affordable housing statewide, and I will continue working to secure the federal resources needed to support these efforts."

U.S. Senator Kirsten Gillibrand said, "The Wallace Campus renovation will deliver much-needed housing improvements that will help revitalize downtown Poughkeepsie and make the community a more affordable place to live. I will continue to fight for federal funding to expand affordable and secure housing across New York."

U.S. Representative Pat Ryan said, "Hardworking folks across the Hudson Valley are getting crushed by the cost of housing. That's why I'm focused in Congress on finding ways to drive down costs and urgently build more housing. The Wallace Campus will do exactly that, transforming a vacant site into more than just housing units so more folks can afford to stay and live in downtown Poughkeepsie, but also a place for folks to enjoy the new Wallace Green. I'm proud to have helped secure federal funding to make sure this project has the support it needs and will continue fighting to build more housing across our communities."

State Senator Rob Rolison said, "The former Wallace Company Department Store has long been part of Poughkeepsie's history, and I'm very pleased to see New York State supporting its transformation into new housing and economic opportunity for our community. This project was first proposed during my time as Mayor, and I have supported it from day one because of the positive impact it could have on downtown Poughkeepsie. Thank you to the State and all of the partners involved for helping move this important investment forward."

Assemblymember Jonathan Jacobson said, "It's exciting to see projects like this in Poughkeepsie. Wallace Campus is a great example of how we can revitalize neglected spaces to bring more affordable housing and retail to cities in the Hudson Valley."

City of Poughkeepsie Mayor Yvonne Flowers said, "Breaking ground on this project is a big step forward as we tackle one of the most pressing challenges facing our community: affordable housing. Creating new homes that families and hard-working individuals can afford is critical to building a vibrant city where everyone has the opportunity to thrive."

Dutchess County Executive Sue Serino said, "Today's groundbreaking is a powerful reminder of what's possible when we invest in our communities and commit to expanding housing opportunities for all. Dutchess County is proud to support the Wallace Campus project with $2.2 million from our Housing Trust Fund and more than $500,000 in HOME funds because strengthening local housing supply strengthens our entire community, helping ensure our neighbors have access to safe, stable homes."

Mid-Hudson Regional Economic Development Council Co-Chairs Dr. Marsha Gordon and Dr. Kristine Young said, "Downtown Poughkeepsie is a cornerstone of our regional economy, and Wallace Campus will make it a more vibrant, accessible place for families and businesses alike. By preserving a beloved landmark, adding nearly 200 affordable homes, and creating new public green space on Main Street, this project reflects the kind of thoughtful, community-driven investment that strengthens our downtowns for the long term."

Mega Group Development Principal Emanuel Kokinakis said, "This transformative development is a model for how the public and private sectors can work together to address New York's urgent need for housing. We are proud to collaborate with Ametrine Group, Mental Health America of Dutchess County, NYSHCR, Wells Fargo, the City of Poughkeepsie and our State and local partners to reactivate this long-underutilized site in a way that will serve the needs of this community for generations to come."

Ametrine Group President Amy Larovere said, "The reactivation of the Wallace Campus marks a pivotal moment for Poughkeepsie, creating high-quality, affordable homes for deserving individuals and families and strengthening the surrounding community. We thank our partners Mega Group Development, MHA of Dutchess County, and our government partners for their efforts to advance this important initiative and look forward to its completion."

Mental Health America of Dutchess County Chief Executive Officer Andrew O'Grady said, "This project reflects a big part of the MHA of Dutchess County core mission - meeting people where they are and providing housing that promotes dignity, recovery, and long-term stability. The supported apartments at Wallace Campus will offer residents not only a home, but a strong foundation for improved health and community integration."

Leviticus Fund Executive Director Greg Maher said, "Five years ago, we provided an acquisition loan for the Wallace Campus because we know how hard it is for Hudson Valley families to find an affordable place to live. Today's groundbreaking is a powerful reminder of what's possible when mission-driven lenders, committed developers, government agencies, and a broad coalition of community supporters align around a shared goal. We're glad that the Leviticus Fund could help lay the financial foundation for what will be a landmark project in the Poughkeepsie Innovation District."

Wells Fargo Community Lending and Investment's Head of Impact Investing & Strategy Page Travelstead said, "Wells Fargo is proud to support the Wallace Campus development in downtown Poughkeepsie. By working alongside our development and public-sector partners, including Mega Development, Ametrine Group, and New York State Homes and Community Renewal, we helped bring together financing for a project that will expand access to affordable housing, including homes for residents in need of supportive services. This project reflects what's possible when public and private partners come together to expand housing opportunities while preserving and revitalizing historic community assets."

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 and implemented new protections for renters and homeowners. Under Governor Hochul's leadership, HCR has created new programs that jumpstart development of affordable and mixed-income homes - for both renters and homebuyers. These include the Pro-Housing Community Program, which allows certified localities exclusive access to up to $750 million in discretionary State funding. More than 420 communities throughout the state have been certified Pro-Housing, including the City of Poughkeepsie.

As part of Governor Hochul's 2026 State of the State, the Governor proposed her "Let Them Build" agenda, a series of landmark reforms to speed up housing and infrastructure development and lower costs. This initiative will spur a series of common-sense reforms to New York's State Environmental Quality Review Act (SEQRA) and executive actions to 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 FY27 Executive 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 Executive Budget also invests $250 million in capital funding to accelerate the construction of thousands of new affordable homes.