Governor Hochul Announces Start of Construction on $61 Million Af...

Governor Kathy Hochul today announced the start of construction on Lebechi East, a new 95-unit housing development in the Brownsville neighborhood of Brooklyn that will provide affordable, supportive apartments and an on-site community health facility for residents and the public. The development will replace a vacant police precinct with modern, sustainable housing and offer health and wellness resources that address chronic social, economic, and health disparities in the surrounding community. Under Governor Hochul's leadership, New York State Homes and Community Renewal (HCR) has created or preserved nearly 3,000 affordable homes in Brooklyn. Lebechi East 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.

"Creating more affordable housing and expanding access to supportive services are central to making New York more affordable and more livable for all," Governor Hochul said. "Our investment in Lebechi East will help deliver much-needed modern, high-quality apartments to Brooklyn and ensure more New Yorkers have access to critical health and wellness resources."

Lebechi East, developed by Xenolith Partners, LLC in partnership with Family Services Network of New York, Inc. (FSNNY) and Galaxy GC Group, will provide homes to households earning up to 60 percent of the Area Median Income. The development will include a mix of studios, one- and two-bedroom apartments, 57 of which will be supportive apartments for eligible individuals, including those experiencing homelessness. The development will offer 11 units to accommodate residents with mobility impairments and five apartments for residents with sensory disabilities.

On-site support services will be provided by FSNNY and include individualized case management, counseling, education, job-readiness training, legal services and other individual and family support. Operating expenses for the supportive apartments will be subsidized through an Empire State Supportive Housing Initiative award administered by the New York State Department of Health.

The 11-story building will include a community room, roof terrace, fitness space, play area, and landscaped outdoor areas. The project is designed to meet Passive House and Enterprise Green Communities 2020 standards, incorporating all-electric systems and energy-efficient features, including heat-pump water heaters, LED lighting and Energy Star appliances.

The building will include a nearly 6,000 square foot ground-floor community health care facility also operated by FSNNY that will offer primary and preventive health and wellness services to residents and the surrounding community.

In addition, the New York City Housing Authority (NYCHA) facilitated the transfer of 38,000 square feet of development rights and 6,200 square feet of underutilized land adjacent to its Howard Houses campus to help make this project possible. This is the first instance of NYCHA utilizing the Transfer of Assistance flexible tool from the U.S. Department of Housing and Urban Development to ensure that at least eight units will be set aside for existing NYCHA residents at Howard Houses.

State financing for Lebechi East includes Federal Low Income Housing Tax Credits from HCR that are expected to generate approximately $24 million in equity and $13 million in subsidy. The development also benefits from $522,000 in Clean Energy Initiative funding, a partnership between HCR and the New York State Energy Research and Development Authority (NYSERDA). The New York City Department of Housing Preservation and Development is providing $18 million through its Supportive Housing Loan Program.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Lebechi East represents the future of affordable housing in New York: high-quality, energy-efficient homes paired with on-site services that help residents achieve stability and independence, and resources that help the community thrive. By investing in developments like this, we are addressing urgent housing needs, supporting our most vulnerable New Yorkers, and building stronger, healthier communities across Brooklyn and beyond."

New York State Health Commissioner Dr. James McDonald said, "Safe and stable housing is essential to good health. I thank Governor Hochul for her continued leadership and commitment to expanding access to affordable, supportive housing across New York. This development recognizes that many New Yorkers face complex challenges, and by pairing affordable homes with on-site supportive health services, it offers not just a place to live, but a pathway to healing, stability, and hope for those who need it most.

NYSERDA President and CEO Doreen M. Harris said, "New York State is leading the way in setting a new standard for affordable housing by ensuring that residents benefit from clean, modern living spaces on day one. The 1546 East New York Avenue development in Brooklyn will feature energy efficient systems and clean energy solutions that can help lower energy usage, improve comfort and enhance overall higher quality of life."

Assemblymember Latrice Walker said, "The need for affordable housing - especially supportive housing - has reached crisis level in the city, especially in communities like Brownsville where I was born and raised. The groundbreaking at Lebechi East not only represents a welcome step toward sustained community stability, but it's also an indication of what can be achieved when public and private interests come together. Thank you to all the partners on the project and to Gov. Kathy Hochul for her leadership."

Brooklyn Borough President Antonio Reynoso said, "As we tackle the affordable housing crisis, projects like 1546 East New York Avenue will bring truly affordable homes and supportive services to so many Brownsville families. This is the type of interagency investment that meets people where they are; with 95 new units, including supportive housing for our most vulnerable neighbors, this development is a meaningful step toward expanding access and stability for Brooklynites. I thank Governor Hochul for her leadership and for working to keep Brooklynites in the communities they help build."

NYC Department of Housing Preservation and Development Deputy Commissioner of Development Patrick Love said, "Lebechi East is a model of using public land for public good. By bringing 95 new affordable homes to Brownsville-including 57 supportive homes, available to homeless New Yorkers-this building will create housing stability for families who just want to stay in Brooklyn. We're proud to partner with HCR and NYCHA on this project, and we'll continue working across every level of government to deliver the housing New Yorkers need.

NYCHA Chief Executive Officer Lisa Bova-Hiatt said, "NYCHA is so pleased to have helped facilitate new housing opportunities for low-income New Yorkers and NYCHA residents at a time when affordable housing remains so critical. We're excited to break ground alongside our partners on this wonderful new building at Lebechi East, which will provide vital affordable housing opportunities in Brownsville, including several for existing NYCHA residents from Howard Houses."

Xenolith Partners Principal Terri Belkas-Mitchell said, "Xenolith Partners is proud to partner with New York State Homes and Community Renewal on Lebechi East, a 95-unit development that reflects a shared commitment to creating high-quality, deeply affordable housing in the Brownsville community. At Lebechi East, this project represents not just new homes, but meaningful investment in neighborhood stability, opportunity, and long-term resilience. We are deeply grateful to Governor Kathy Hochul, Family Services Network of New York, Galaxy GC Group, New York State Homes and Community Renewal, New York City Department of Housing Preservation and Development, Webster Bank, and Hudson Housing Capital for their partnership in advancing this project. Their collaboration, expertise, and shared commitment have been instrumental in bringing Lebechi East to life, and we look forward to seeing it become a vibrant and supportive place for residents to call home."

Galaxy GC Group Partner Charles Tsetsekas said, "For Galaxy GC Group LLC, this groundbreaking represents a deep commitment to supportive housing and demonstrates what's possible when public and private partners come together with a shared vision of affordability, quality design, and long-term community impact. We are grateful for the collaboration and leadership of our partners, whose commitment has made this project possible, and we're proud to be building apartments that will provide stability, opportunity, and a stronger future for the families who will call this community home."

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 410 communities throughout the state have been certified Pro-Housing, including New York City.

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.