Governor Kathy Hochul announced on May 5 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.
The development is part of the Governor’s $25 billion five-year Housing Plan, which aims to create or preserve 100,000 affordable homes statewide. According to the announcement, New York State Homes and Community Renewal (HCR) has financed more than 6,000 affordable homes in Monroe County, including over 4,700 in Rochester.
“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 New York City to begin construction since the Housing Our Neighbors with Dignity Act was passed. The building was originally constructed in 1905 and has been vacant for two decades. Once completed, it will offer studios as well as one- and two-bedroom units for households earning up to 80 percent of Area Median Income. Thirteen units are designed for residents with mobility impairments and six units accommodate sensory disabilities.
Located in Rochester’s Central Business District, Gateway Apartments provides access to public transportation and nearby commercial services. The all-electric development includes ENERGY STAR appliances and LED lighting.
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.”
Funding sources include federal Low Income Tax Credits expected to generate $25 million in equity; $18.5 million from HCR’s Middle Income Housing Program; state Low Income Housing Tax Credits generating $13.6 million; a $4.1 million first mortgage; $850,000 from the Community Investment Fund; over $3.4 million from Clean Energy Initiative funding through a partnership between HCR and NYSERDA; Empire State Development providing $2 million via Restore New York program; and another $850,000 from the City of Rochester HOME program.
Empire State Development President Hope Knight said that repurposing this long-vacant office building “will help strengthen the neighborhood” while NYSERDA President Doreen M. Harris called it “an important step towards delivering high-quality affordable housing that incorporates energy efficient design.” Other officials praised both its impact on downtown revitalization efforts and its role addressing local affordability challenges.
As part of her broader agenda outlined during her latest State of the State address, Governor Hochul proposed reforms intended to speed up future developments by streamlining regulatory processes such as those under SEQRA (State Environmental Quality Review Act). The FY27 Executive Budget continues investments toward completing current targets—including electrification upgrades—and adds capital funding intended to accelerate new construction.
