Rochester NY Wins $42.6M in State Funding for Infrastructure & Housing

Westside Construction Group
Building Better Blogs.

Rochester and Monroe County — New York State announced $42.6 million in state funding for 48 economic development, housing, infrastructure, and environmental projects across the Finger Lakes region, with significant allocations supporting construction and infrastructure improvements in the Rochester area. The awards were announced on December 23, 2025, as part of Gov. Kathy Hochul's Regional Economic Development Council (REDC) initiative.

Rochester-Area Projects Receive Major Funding

Rochester and Monroe County received critical funding for three significant projects that will drive housing growth, healthcare expansion, and transportation infrastructure improvements:

Town of Henrietta: $3.28 Million for Housing-Enabling Infrastructure

The Town of Henrietta, a major residential community in Monroe County, received $3.28 million to extend Fair Avenue and relocate sewer infrastructure. This project will support approximately 550 new housing units in the community, representing major residential growth.

The infrastructure improvements address a critical bottleneck in housing development. By extending water and sewer capacity along Fair Avenue, the project removes infrastructure constraints that previously limited residential development potential. This investment aligns with broader New York State goals to expand housing supply in economically vibrant communities experiencing growth pressure.

Rochester General Hospital: $2 Million for Healthcare Education Campus

Rochester General Hospital received $2 million in state funding to convert a vacant former manufacturing facility into a healthcare education and innovation campus. This project transforms underutilized industrial space into productive use supporting workforce development and healthcare innovation.

The conversion project supports New York State's dual goals of brownfield remediation and workforce development. By repurposing vacant manufacturing space, the project contributes to Rochester's industrial waterfront revitalization while creating space for healthcare education and research activities. This type of adaptive reuse strengthens Rochester's position as a healthcare services and education center.

City of Rochester: $780,000 for Dewey Avenue Non-Motorized Transportation

The City of Rochester received $780,000 to construct off-street cycle tracks as part of the Dewey Avenue reconstruction project. The award supports expanded non-motorized transportation infrastructure—bicycling and pedestrian pathways—that enhance connectivity, safety, and mobility options for residents and visitors.

Dewey Avenue is a significant corridor in Rochester's economic and cultural district. Off-street cycle tracks will create separated, protected bicycle infrastructure that encourages mode shift away from automobile dependency. This project complements broader efforts to enhance downtown Rochester's walkability and multimodal transportation options.

Finger Lakes Region Receives $42.6M in State Funding

The Rochester-area projects are part of a broader $42.6 million investment across the Finger Lakes region. Across the five-county Finger Lakes region, 48 projects received support for:

  • Housing-enabling infrastructure (water, sewer, electrical systems)
  • Residential development projects (new housing units)
  • Infrastructure modernization (transportation, utilities, public facilities)
  • Environmental resilience (stormwater, brownfield remediation, climate adaptation)
  • Waterfront revitalization (canal-front parks, lakefront access)
  • Workforce development (education facilities, training centers)
  • Tourism and cultural projects (heritage sites, festival infrastructure)

Pro-Housing Supply Fund Supports Regional Growth

The awards reflect New York State's emphasis on housing supply expansion. Across the Finger Lakes region, Pro-Housing Supply Fund awards included:

  • $2.9 million to Village of Phelps for water and sewer infrastructure supporting 144-unit residential development (25% increase in village housing stock)
  • $8.97 million to Village of Honeoye Falls for wastewater treatment plant upgrades enabling 400+ housing units
  • $3 million to Town of Canandaigua for electrical grid infrastructure supporting 634-unit residential project
  • $3.28 million to Town of Henrietta for sewer infrastructure enabling 550 new housing units

Combined, these Pro-Housing awards will support approximately 1,728 new housing units across the Finger Lakes region through housing-enabling infrastructure investment.

Economic Development and Community Impact

The Regional Economic Development Council initiative has distributed over $8 billion to 10,000+ projects statewide since its creation. The program uses a "bottom-up" model where regional councils identify community priorities rather than centralized state decision-making.

According to state officials, the $42.6 million Finger Lakes allocation reflects the region's strategic priorities: housing supply expansion, economic growth with environmental stewardship, and infrastructure modernization addressing long-standing disinvestment in some communities.

For Rochester specifically, the three awards address critical economic development drivers:

  • Housing supply: Henrietta's 550-unit capacity addresses tight housing markets and affordability challenges
  • Healthcare sector growth: Rochester General's education campus supports the city's role as a regional healthcare center
  • Downtown revitalization: Dewey Avenue cycle track project enhances downtown accessibility and quality of life

Broader Regional Investments

Beyond Rochester, the Finger Lakes region received funding for significant projects including:

  • Lyons Western Gateway Park ($150,000): Canal-front revitalization on brownfield parcels along Erie Canal
  • Daylighting feasibility studies (Geneva): Environmental restoration projects daylighting buried waterways
  • Seneca Falls intermunicipal water quality projects: Watershed and drainage improvements involving multiple counties
  • Tourism and arts funding: Regional branding, Rochester Fringe Festival, Cayuga Lake Wine Trail marketing, multi-county arts festivals

Infrastructure Investment Supporting Economic Growth

The Finger Lakes REDC awards demonstrate how targeted infrastructure investment drives economic development. Housing-enabling infrastructure removes development bottlenecks, allowing communities to capture growth. Brownfield remediation and adaptive reuse projects unlock underutilized assets. Transportation and utilities improvements enhance quality of life and business competitiveness.

For construction and development professionals, these awards signal continued state investment in regional infrastructure, housing, and economic development across upstate New York. The awards also reflect state priorities for pro-housing development, environmental sustainability, and equitable regional growth.

Looking Ahead

The three Rochester-area projects funded through this REDC round will advance over 2026 and beyond. Henrietta's Fair Avenue extension will enable residential development in one of Monroe County's strongest housing markets. Rochester General's healthcare education campus will support workforce development in healthcare services. The Dewey Avenue cycle track project will enhance downtown Rochester's walkability and multimodal transportation options.

For more information about the Finger Lakes Regional Economic Development Council or the 2025 awards, visit the New York Regional Councils website. More information on specific Rochester projects is available through the City of Rochester Development Office, Town of Henrietta, and Rochester General Hospital.

Read us in socials:
Social iconSocial iconSocial icon
Our latest articles

Latest industry news

Jan 8, 2026
NYC Construction Superintendent Rule Limits to One Primary Job Effective January 2026

NYC construction superintendents now limited to one primary job effective January 1, 2026. Transition deadline January 1, 2027. Competent person allowance ends same date.

Jan 8, 2026
Buffalo Central Terminal Phase II $33M Construction Reaches Halfway Point

Buffalo Central Terminal Phase II construction reaches halfway point on $33M restoration. Concourse reopening, plaza expansion, structural stabilization advance through 2027.

Jan 8, 2026
Rochester $46.3M Colgate Divinity Housing Development 136 Units

Angelo Ingrassia's $46.3M Colgate Rochester Divinity development creates 136 housing units. Historic campus transformation with COMIDA tax incentives. Public hearing Jan 15, board vote Jan 20.

Build with confidence—
start your project with us today.

Text Rotate