Rochester $98M Affordable Housing Development Projects

Rochester, N.Y. — Governor Kathy Hochul has announced nearly $98 million in state funding for two major affordable housing development projects in Rochester that will create 282 new affordable apartments. The announcement, published December 29, 2025, marks a significant investment in addressing housing affordability and neighborhood stabilization across the City of Rochester.

Gateway Apartments: $58M Downtown Revitalization

The largest single award — $58 million — will support the Gateway Apartments project, an adaptive reuse development that will transform a long-vacant office building in downtown Rochester into 129 new affordable apartments. Developed by Gateway Preservation, the project will provide housing accessible to households earning up to 80 percent of the Area Median Income (AMI), making units available to working families and individuals earning modest incomes.

This downtown conversion is part of Rochester's broader strategy to revitalize the central business district through residential infill and adaptive reuse projects. By converting existing vacant office space rather than building new structures, the project preserves historic architecture while addressing the region's critical shortage of affordable housing.

Los Flamboyanes: $40M Preservation Project

An additional $40 million investment will support the Los Flamboyanes preservation project, a 153-unit Mitchell-Lama housing development located in Rochester's Upper Falls neighborhood. Led by Landsman Development Corporation with development consulting by CSD Housing, this preservation project ensures long-term housing affordability for households earning up to 60 percent of the Area Median Income — targeting lower-income families and individuals in the community.

Preservation of existing affordable housing stock is as critical as new development. By securing stable, long-term funding, Los Flamboyanes will remain an anchoring affordable community asset for generations to come.

Sustainability and Energy Efficiency Standards

Both projects will meet rigorous standards for energy efficiency and sustainability, aligning with New York State's long-term climate goals. Modern construction practices and green building standards will reduce operating costs and environmental impact, benefiting residents through lower utility costs and healthier living environments.

Part of Statewide Housing Investment

The Rochester awards are part of a nearly $2 billion statewide investment announced by Governor Hochul, supporting 24 housing developments across New York State that will create or preserve more than 6,600 affordable, supportive, and sustainable homes. This represents New York's commitment to addressing the state's housing affordability crisis through targeted state funding and partnerships with private developers.

What This Means for Rochester

For Rochester and the broader Finger Lakes region, these two projects represent momentum toward addressing a persistent housing challenge. The combination of downtown revitalization through adaptive reuse (Gateway Apartments) and preservation of existing affordable stock (Los Flamboyanes) demonstrates a balanced approach to housing development that serves households at different income levels.

The 282 new and preserved apartments will provide stable housing for roughly 600-700 individuals and families, reducing housing cost burdens and enabling them to invest in education, business, and community participation. Both projects are expected to proceed with development and construction timelines as financing is finalized.

Source: Rochester First (WROC), December 29, 2025