Officials celebrate groundbreaking of $167 million Chelsea Beacon redevelopment Manhattan

Manhattan, NY Governor Kathy Hochul celebrated the official groundbreaking of Chelsea Beacon, a more than $167 million redevelopment that will transform the long-vacant, state-owned former Bayview Correctional Facility at 550 West 20^th St. in the West Chelsea neighborhood. Developed by a joint venture between Camber Property Group and the Osborne Association, the adaptive reuse of the historic building will create up to 131 permanently affordable housing units, a 15-unit short-term transitional residence and 9,300 s/f of community facility space. Empire State Development supported the project’s redevelopment, managing environmental review, project approvals and the property’s disposition to enable its conversion into affordable housing and community-serving uses. Under governor Hochul’s leadership, New York State Homes and Community Renewal (HCR) has created or preserved nearly 8,000 affordable homes. Chelsea Beacon continues this effort and is part of governor Hochul’s $25 billion five-year Housing Plan, which is on track to create or preserve 100,000 affordable homes statewide.

“For more than a decade, this historic property sat vacant in one of New York City’s most vibrant neighborhoods. Today, we are transforming it into a place of opportunity — creating permanently affordable homes, supportive housing and critical services that will give New Yorkers the stability and resources they need to build stronger futures,” governor Hochul said. “Chelsea Beacon reflects our commitment to tackling the housing crisis from every angle, including putting underutilized State property back to work for New Yorkers.”

Empire State Development president, CEO and commissioner Hope Knight said, “The groundbreaking of Chelsea Beacon marks an important step toward transforming a long-vacant State property into a lasting community asset. By bringing together affordable housing, supportive services and community space while thoughtfully preserving this historic building, Chelsea Beacon demonstrates how strategic public investment and strong partnerships can unlock the potential of underutilized properties.”

New York State Homes and Community renewal commissioner RuthAnne Visnauskas said, “Chelsea Beacon is a powerful example of how we can turn underutilized state-owned properties into new opportunities for New Yorkers. This project will bring 131 affordable homes, including apartments with supportive services, to a neighborhood where affordable housing is in high demand. By preserving this historic building while creating high-quality, sustainable homes, governor Hochul is helping make New York City more affordable, inclusive, and livable for New Yorkers of all backgrounds.”

New York State Office of Mental Health commissioner Dr. Ann Sullivan said, “Providing support for New Yorkers who are living with mental illness during transitions in their lives is a critical step toward ensuring their recovery needs are met and that they have access to the services designed to help them succeed in their community. Chelsea Beacon will provide transitional housing and supportive services through the adaptive reuse of the former Bayview Correctional Facility.This groundbreaking represents Governor Hochul’s continued commitment to developing specialized housing to help individuals living with mental illness on the path to recovery.”

New York State Office of Temporary and Disability Assistance commissioner Barbara Guinn said, “When completed, Chelsea Beacon will provide formerly incarcerated individuals reentering the community with an affordable home and the essential services they need to stabilize and rebuild their lives and live independently. We are grateful to all the partners on this transformative project and to Governor Hochul for making landmark investments that prioritize the development and preservation of permanent supportive housing across the state, providing critical support to vulnerable New Yorkers and strengthening communities.”

Originally constructed between 1930 and 1932 as the Seamen’s House YMCA, the Art Deco building was designed by Shreve, Lamb and Harmon Architects and later became the Bayview Correctional Facility, a women’s medium-security correctional and work-release facility. The property closed following flooding from Hurricane Sandy in 2012 and has remained vacant for more than a decade.

Under Governor Hochul’s leadership, Empire State Development issued a request for proposals for the purchase and redevelopment of the property in September 2023. In July 2024, Governor Hochul announced the winning proposal for the redevelopment of the state-owned, 100,000 s/f property. The selected proposal, a joint venture between Camber Property Group and Osborne Association, represents an investment of more than $167 million in West Chelsea and will transform the former correctional facility into affordable housing for households and supportive housing for formerly incarcerated individuals. Seven apartments are fully accessible and adapted for residents with mobility impairments, while three units are equipped for residents with hearing and visual impairments. Units will be affordable for households earning up to 80% of the Area Median Income. Construction is anticipated to be completed in 2029.

Supportive housing within the development will be marketed to formerly incarcerated New Yorkers, transforming a former correctional facility into a place that provides the housing, stability and services people need to successfully rebuild their lives after incarceration.

The project will also include a 15-unit short-term transitional residence designed to support individuals with mental health needs who are navigating life transitions and require temporary housing. The New York State Office of Mental Health (OMH) is providing both capital and operating funding for these residences. OMH separately selected Urban Pathways through a competitive Request for Proposals process to operate the transitional residence and provide on-site supportive services.

Reflecting extensive community feedback and ongoing consultation with the State Historic Preservation Office, Chelsea Beacon has been designed to adaptively reuse and preserve many of the site’s historic features. The redevelopment will preserve and adaptively reuse the historic Main and Annex buildings while constructing a new addition within the interior courtyard to maximize housing opportunities.

The historic interior Chapel will be restored and repurposed as programmatic space, while the iconic tile mosaic from the former pool will be preserved and reinstalled in the residential lobby. To ensure compatibility with the historic structure, the new addition will be set back from the street wall and clad in masonry materials that complement the existing façade, allowing the redevelopment to balance historic preservation with the creation of much-needed housing and community space. Chelsea Beacon will also incorporate modern sustainability and resiliency features, including all-electric building systems.

Financing for Chelsea Beacon includes a mix of public and private sources, including Federal and State Low-Income Housing Tax Credits from New York State Homes and Community Renewal that are expected to generate $77 million in equity, along with $25 million in HCR subsidy. Empire State Development is supporting the program with $20 million from its NY RUSH program.

The project is additionally supported by $13.86 million in capital funding from the New York State Office of Mental Health, part of Governor Hochul’s transformative $1 billion investment in strengthening the mental health system included in the FY24 Budget. Operating expenses for the supportive units are funded through an Empire State Supportive Housing Initiative award administered by the New York State Office of Temporary and Disability Assistance.