Governor Hochul Announces $72.3 Million Affordable Housing Projec...

Governor Kathy Hochul today announced the start of construction at Gateway Apartments in Rochester, a $72.3 million project that will transform a vacant seven-story office building into 129 affordable homes. Under Governor Hochul's leadership, New York State Homes and Community Renewal (HCR) has financed more than 6,000 affordable homes in Monroe County, including more than 4,700 in Rochester. Gateway Apartments continues this effort and is part of the Governor's $25 billion five-year Housing Plan which is on track to create or preserve 100,000 affordable homes statewide. 

"The groundbreaking of Gateway Apartments shows what's possible when we reimagine vacant buildings as high-quality, energy-efficient homes for New Yorkers," Governor Hochul said. "This innovative office-to-residential conversion will transform an empty property into much-needed affordable housing in downtown Rochester, strengthening the community, supporting local growth and expanding opportunity for working families."

Gateway Apartments is HCR's first office-to-residential conversion project outside of New York City to begin construction since the Housing Our Neighbors with Dignity Act (HONDA) was passed, creating a path to converting distressed commercial properties into affordable housing. The downtown building, originally built in 1905, has been vacant for 20 years.

Gateway Apartments will be affordable to households earning up to 80 percent of the Area Median Income and provides a mix of studios, one-bedroom units and two-bedroom units. The variety of units will appeal to households of different shapes and sizes, including individuals living downtown or small families.

Located in Rochester's Central Business District Gateway Apartments will offer easy access to public transportation, as well as commercial, retail, healthcare, educational and recreational establishments. The project builds on HCRinvestments in the East Main Street corridor, including the revitalization of the historic Harper's Corner.

Gateway Apartments will be an all-electric development with ENERGY STAR appliances and LED lighting. It includes fully accessible and adaptable apartments. There are thirteen units to accommodate residents with mobility impairments and six units to accommodate residents with sensory disabilities.

The project, developed by SAA | EVI, supported by HCR's Federal Low Income Tax Credit Program, which is expected to generate $25 million in equity, $18.5 million from its Middle Income Housing Program, State Low Income Housing Tax Credit program which is expected to generate $13.6 million in equity, a $4.1 million First Mortgage, and $850,000 from the Community Investment Fund. The project also benefits from more than $3.4 million in Clean Energy Initiative funding, a partnership between HCR and the New York State Energy Research and Development Authority (NYSERDA). Empire State Development is providing $2 million from its Restore New York program. The City of Rochester is providing $850,000 through its HOME program.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Gateway Apartments exemplifies the power of adaptive reuse to address local housing needs while delivering sustainable, all-affordable homes. With this development we are not only creating 129 new units of affordable housing but also strengthening Rochester's downtown core and advancing our statewide goals for equitable development. Thank you to SAA | EVI for your partnership on this transformative project. We are grateful to Governor Hochul for her bold vision on increasing our housing supply."

Empire State Development President, CEO and Commissioner Hope Knight said, "Under Governor Hochul's leadership, affordable housing developments are part of the infrastructure to support extensive community transformation. Repurposing this long-vacant office building into 129 units - aided by funding from the Restore New York - will help to strengthen the neighborhood and encourage new opportunities for residents in Rochester's center city."

NYSERDA President and CEO Doreen M. Harris said, "Today's groundbreaking marks an important step towards delivering high-quality, affordable housing that incorporates energy efficient design from the start. Through projects like the Gateway Apartments in Rochester, New York is demonstrating what is possible when you transform out-of-use buildings using the latest clean energy solutions to provide safe, modern living spaces."

State Senator Jeremy Cooney said, "Affordable, stable housing is the key to building generational wealth and lifting our community members out of poverty. The Gateway Apartments project will be transformational for so many Rochesterians and will make high-quality housing more attainable than ever. I want to thank Governor Hochul for prioritizing housing needs in Rochester, where nearly a third of residents live below the federal poverty line and are cost-burdened due to housing prices."

Assemblymember Demond Meeks said, "Affordable housing is the foundation of a safe, vibrant, and stable community. The start of construction at Gateway Apartments represents another vital step towards revitalizing downtown Rochester and expanding housing opportunities for our residents. By transforming a long-vacant building into 129 affordable homes, we are not only addressing our critical housing needs but also breathing new life into our city's center. Our office is proud to support initiatives that combine sustainable infrastructure with accessible, quality housing for working families and individuals. We will continue to work with Governor Hochul to increase investments in downtown Rochester."

Monroe County Executive Adam Bello said, "Affordable and safe housing is essential to the strength and future of our city and county. I applaud the Governor and her team for their creativity and commitment in transforming this large vacant property into brand new affordable housing units that will be able to accommodate a wide range of residents from single people to families. This investment will not only provide stable homes for residents but also help revitalize the surrounding community and create new opportunities for families to thrive."

City of Rochester Mayor Malik Evans said, "The strategic investments Governor Hochul is making in Rochester are helping to fuel the momentum and renaissance we're seeing in downtown today. Gateway Apartments is a powerful example of that progress, transforming a long-vacant building into high-quality, affordable housing alongside projects like the future Main Street Commons in the heart of our Downtown Revitalization Initiative area. This investment reflects our commitment to creating a more vibrant, connected and inclusive city for all. I'm grateful to Governor Hochul for her continued partnership and her focus on ensuring Rochester residents have access to safe, quality and affordable housing."

SAA | EVI Regional Head and Partner Connor Kenney said, "10-years ago, I started my affordable housing development career as an intern in Rochester, New York. It is extremely rewarding to have the opportunity to positively impact the City. The SAA|EVI team is grateful to all of our partners who collaborated with us to make this project a reality. HCR and HFA, the City of Rochester, JPMorgan Chase, Redstone Equity, SWBR, Christa Construction and Cannon Heyman Weiss were excellent to work with. We are committed to the City of Rochester and look forward to continuing our ultimate mission: providing high quality affordable housing to low income residents across New York State."

Governor Hochul's Housing Agenda

Governor Kathy 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 the City of Rochester.  

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.