Governor Hochul Announces Significant Progress for $130M Affordab...

Governor Kathy Hochul today announced continued progress toward the $130 million transformation of the 600,000 square-foot Syracuse Developmental Center into a vibrant, mixed-use hub in the city of Syracuse. With demolition work completed at the 800-2 S. Wilbur Avenue site, developers are making way for more than 260 new affordable apartments as part of the first phase of construction. The entire three-phase plan to redevelop the site could eventually include over 500 units of affordable and market rate apartments and townhomes, 7.5 acres of green space, an advanced manufacturing facility with office space, and 3,600 square-feet of retail commercial space. The project will increase the region's housing supply to help prepare for the arrival of Micron, whose $100 billion commitment to build a new campus in the Town of Clay will create 50,000 new jobs over the next 20 years and establish a regional job hub to help grow the local economy.

"This important project is transforming the long-abandoned Syracuse Developmental Center into high quality, mixed-use, mixed-income housing that will rejuvenate this community for decades to come," Governor Hochul said. "Thanks to our close collaboration with local leaders like Mayor Owens and other stakeholders, we will remain dedicated to building the housing we need, to keep investing in new opportunities, and driving the economy of the future."

City of Syracuse Mayor Sharon Owens said, "Transforming the former Syracuse Developmental Center into a modern neighborhood for housing, jobs, and innovation is a key milestone for Syracuse. We are breathing new life into an abandoned site, delivering much-needed affordable and market-rate housing, and supporting the economic momentum taking shape across our region. This progress reflects a commitment to building a stronger future for Syracuse and all of Central New York. We are grateful to Governor Hochul and our State partners for their continued leadership and support in making projects like this possible."

The first phase of the project features all-electric development and will include a mix of studio, one, two, and three-bedroom apartments and will be available to households earning between 30 percent and 80 percent of the Area Median Income. Amenities include gym, laundry, and community room. The location is in a Central Syracuse neighborhood with a mix of rental apartments and single-family homes and access to local businesses, highways, and public transportation.

Phase one is supported by New York State Homes and Community Renewal's (HCR) Federal Low Income Tax Credit Program, which is expected generate $40.4 million in equity, its State Low-Income Housing Tax Credit Program, which is expected to generate $4.9 million in equity, $58.5 million from its New Construction Program, and $7.3 million in permanent tax-exempt bonds.

Empire State Development invested $29 million to assist with required pre-development site preparation work, including the demolition and remediation of the existing structures on the site as well as infrastructure investments to expand water and sewer service lines, roads and sidewalks, tree planting, canopy and lighting throughout the site.

The City of Syracuse is supporting the project with $9 million.

Empire State Development President, CEO & Commissioner Hope Knight said, "The revitalization of the long-vacant Syracuse Developmental Center offers a forward-thinking opportunity to address Central New York's long-term regional priorities. Inspired by Governor Hochul's unwavering commitment to both expand the economy and enhance affordability for all New Yorkers, this project will create jobs and residential options in Syracuse and the greater Onondaga County community for years to come."

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Today's groundbreaking marks a major milestone in the transformation of the former Syracuse Developmental Center from a long-vacant property into a vibrant mixed-use development that will serve Central New York for generations to come. Through partnerships with Empire State Development, local leaders and the development team, Phase I will create more than 260 affordable homes, along with new green space and retail amenities that strengthen the surrounding community. As Central New York prepares for unprecedented growth and job creation, projects like this are critical to ensuring that families, workers and future residents have access to the housing opportunities they need."

State Senator Christopher Ryan said, "This project is about creating the housing our community needs. As Central New York grows, we have to make sure families, workers, seniors, and young people can find affordable places to live and put down roots. Turning a long-vacant property into hundreds of new homes is a smart investment in Syracuse's future and will help ensure that more people can live, work, and thrive in our community. I'm excited to see this project moving forward and the positive impact it will have for years to come."

State Senator Rachel May said, "The transformation of the Syracuse Developmental Center site has been a long time coming, and it's exciting to see this much-needed housing project finally moving forward. As our region continues to grow and prepares for the opportunities that come with Micron, we need more affordable housing options for families, workers, and seniors. Thank you to Governor Hochul for helping to revitalize this area and for recognizing the importance of investing in Central New York's future."

Assemblymember William Magnarelli said, "The Syracuse Developmental Center redevelopment project is not only transformational for Syracuse's Westside and Tipp Hill Neighborhoods, but it will also be transformational for the entire City, bringing hundreds of units of affordable and mixed-use housing online at a critical time of growth in our community."

Assemblymember Pamela J. Hunter said, "The transformation of the former Syracuse Developmental Center is a major step forward for our community. This project will turn a long-vacant property into affordable housing, green space, and neighborhood amenities while creating jobs, expanding opportunity, and helping Syracuse prepare for Central New York's next chapter of economic growth."

Onondaga County Executive Ryan McMahon said, "Today marks a major milestone for Syracuse and all of Onondaga County. The transformation of the former Syracuse Developmental Center site is more than a construction project; it is a powerful statement about our region's momentum and our shared commitment to creating opportunity for every resident. By turning a long-vacant property into new homes, green space, and a modern employment hub, we are strengthening our neighborhoods, expanding our housing supply, and supporting sustained job creation as advanced manufacturing and related industries continue to grow across Central New York. This progress reflects what we can accomplish when local and state partners come together with a bold vision, and I am proud to celebrate the success we're seeing on this site today as we build on this momentum in the months ahead."

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 Syracuse.

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.

Accelerating Economic Development in Central New York

Today's announcement complements "CNY Rising" the region's comprehensive strategy to generate robust economic growth and community development. The regionally designed plan focuses on capitalizing on global market opportunities, strengthening entrepreneurship and creating an inclusive economy. More information is available here.

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.