New York Seeks Developers for About 150 Homes at Utica Psychiatric Center

New York State is seeking developers to build supportive and affordable housing on a 6.13-acre parcel of the Mohawk Valley Psychiatric Center campus in Utica. Governor Kathy Hochul announced the competitive Request for Proposals on Monday, October 26. It calls for at least 50 supportive units for people with serious mental illness and about 100 more affordable units, and responses are due February 1, 2027 (New York State Office of the Governor).

What Happened

Empire State Development posted the RFP on Monday along with a set of appendices for respondents. They include a feasibility study, two Phase 1 environmental site assessments (one specific to Building 51), infrastructure cost estimates, a rental underwriting template, a budget template for the state's housing site program, an access permit and a site visit RSVP form (Empire State Development). The solicitation covers the purchase and redevelopment of the parcel, which sits within a 119-acre state-owned campus that the state describes as underused (Office of the Governor).

Local outlets reported the announcement Monday afternoon. Both described the same core program and February deadline (WKTV; WUTR).

What Is Confirmed

• Site: 6.13 acres within the 119-acre Mohawk Valley Psychiatric Center campus in Utica, Oneida County. The campus takes in the former Utica State Hospital and Marcy State Hospital (Office of the Governor).
• Program: At least 50 supportive housing units for people with serious mental illness and roughly 100 additional affordable units. Space for supportive services is encouraged where feasible (Office of the Governor).
• Capital funding: The state Office of Mental Health is expected to provide capital funding for the supportive units. No operating funding is available through this procurement (WKTV).
• Demolition and infrastructure: Proposals must address demolition of existing buildings and the infrastructure improvements the site needs. Those costs may be offset through the state's $500 million NY-RUSH program (Redevelopment of Underused Sites for Housing), first set up in the FY25 Enacted Budget (Office of the Governor).
• Deadline: Responses are due February 1, 2027 (Office of the Governor).

Not yet known from the public announcement: the site tour date, the question deadline, how proposals will be scored and the expected award date. ESD's listing includes a site visit RSVP form but gives no tour date on the page itself (Empire State Development). Respondents should check the RFP document for the full schedule.

What the State's Feasibility Study Shows

The feasibility study ESD released with its earlier planning work gives a sense of the scale the state has in mind. It describes a 6.88-acre site on York Street owned by the Office of Mental Health. That is somewhat larger than the 6.13 acres in Monday's RFP, so bidders should rely on the RFP's parcel definition (Empire State Development feasibility study).

The study's concept plan totals 150 affordable units, 50 of them supportive. Most are in a four-story, 155,350-gross-square-foot multifamily building with 136 units. The plan adds 14 two-story and three-story townhomes facing York Street. The study estimated site preparation at about $6.9 million and construction at about $58.4 million, including escalation (ESD feasibility study). It reported public water and sewer, National Grid electric and gas service, and no major contamination findings in the Phase 1 assessment. It also noted that Building 51, a deteriorated structure outside the study area, was being pursued for demolition. The current zoning district, MUC, is meant for reuse of institutional and campus properties (ESD feasibility study).

These figures are study estimates, not RFP requirements. Respondents will set their own designs, budgets and unit mix within the RFP's terms.

Background on the Campus

Utica State Hospital opened in 1843 as New York's first state-run mental health facility. The state acquired more land in 1911 for Marcy State Hospital, and the two were merged into the Mohawk Valley Psychiatric Center campus, which the Office of Mental Health still operates (Office of the Governor). The state release dates the merger to 1985 (Office of the Governor). WUTR reported that the center serves 14 counties and runs clinic programs in Utica, Rome and Herkimer (WUTR).

The RFP is part of the Governor's push to put underused state land to work for housing. The release cites a $500 million fund intended to support up to 15,000 homes on such sites, and an FY27 budget that adds $250 million in capital for affordable homes (Office of the Governor). A similar effort is underway in Monroe County, where state money is paying to clear the former Rochester Psychiatric Center tower for housing, as covered in Update: Rochester Council Approves $20M Pass-Through for Terrence Building Demolition.

What It Means for Owners and Contractors

For developers, the key terms are state capital support for the supportive units, possible NY-RUSH help with demolition and infrastructure, and no operating subsidy. Teams will need a supportive housing operator and a service funding plan that stands on its own. The state's rental underwriting and budget templates show how ESD expects the numbers to be presented (Empire State Development).

For general contractors and subcontractors, the work comes in a clear order: demolition and abatement where required, then site clearing, utilities and electrical, and then a mid-size multifamily building with townhomes, if the study's concept holds. A project of that size in the Mohawk Valley would draw on the same regional labor pool as other upstate housing and infrastructure work. Contractors who want to be on a development team should make contact before the February deadline, while respondents are still pricing their proposals. The feasibility study also notes some local mistrust of large outside developers. Teams with local partners and community engagement plans may have an advantage (ESD feasibility study).

State programs that pay for housing site work are showing up across New York. Municipal water and sewer funding tied to new housing is covered in New York Opens $225M Clean Water for Housing Grants for Municipalities.

What to Watch

• The site tour date and question deadline in the RFP documents.
• Which existing structures fall within the required demolition scope, and how much NY-RUSH funding is set aside for them.
• Any addenda that change the parcel boundary or the unit mix.
• The award announcement after the February 1, 2027 deadline, and the start of city site plan review.

Related Coverage

• Update: Rochester Council Approves $20M Pass-Through for Terrence Building Demolition
• New York Opens $225M Clean Water for Housing Grants for Municipalities
• Greece Gets $5 Million to Buy Mall Land for Senior Housing
• Canton Midtown Plaza Demolition Clears Way for $27M Redevelopment

Image credit: Empire State Development, via WKTV. Image from the source article.

Sources

• New York State Office of the Governor (via EIN Presswire), "Governor Hochul Announces Request for Proposals to Redevelop Six Acres on Mohawk Valley Psychiatric Center Campus for Residential Development": https://www.einpresswire.com/article/952407527/governor-hochul-announces-request-for-proposals-to-redevelop-six-acres-on-mohawk-valley-psychiatric-center-campus-for-residential-development
• Empire State Development, "Purchase and Redevelopment of Parcel within Mohawk Valley Psychiatric Center RFP": https://esd.ny.gov/doing-business-ny/requests-proposals/purchase-and-redevelopment-parcel-within-mohawk-valley-psychiatric-center-rfp
• Empire State Development, "Mohawk Valley Psychiatric Center Site Reuse Project, City of Utica, NY" (feasibility study): https://esd.ny.gov/sites/default/files/media/document/Mohawk-Valley-Psychiatric-Center-Feasibility-Study-122025.pdf
• WKTV, "Request for Proposals: Redevelopment of Parcel within Mohawk Valley Psychiatric Center Campus": https://www.wktv.com/news/local/request-for-proposals-redevelopment-of-parcel-within-mohawk-valley-psychiatric-center-campus/article_6fdef05a-7d6f-4d6c-8cc6-1626118545ff.html
• WUTR (via Yahoo News), "NYS seeking proposals for Mohawk Valley Psych Center redevelopment": https://www.yahoo.com/news/us/articles/nys-seeking-proposals-mohawk-valley-182144949.html