Chelsea Beacon Groundbreaking Celebrated
Governor Kathy Hochul today 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 20th Street in Manhattan's 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 square feet 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 in Manhattan. 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 C. 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, approximately 100,000-square-foot 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 percent 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.
Osborne Association President and CEO Jonathan Monsalve said, “The era of mass incarceration did nothing to make us safer but New York is leading the way forward by offering housing, stability and services to formerly incarcerated New Yorkers at Chelsea Beacon. This building once served as a prison, but its future is filled with possibility and promise for residents and the extraordinary neighborhood that is welcoming them home. Osborne Association is proud and grateful to break ground with our visionary partners, and we thank Governor Hochul, NYS Homes and Community Renewal, Empire State Development, Manhattan Community Board Four and everyone connected to the transformation of this former prison into affordable and supportive housing.”
Camber Property Group Principal Rick Gropper said, “Today we celebrate Chelsea Beacon, a transformative project that will bring affordable and supportive housing and social services to Chelsea. This true public private partnership was developed through close collaboration with partners at all levels, from Governor Hochul, NYS Homes and Community Renewal, Empire State Development, to the Osborne Association and Manhattan Community Board 4. We are thrilled to play a part in bringing this historic building back to life and look forward to creating the next chapter of this storied space for the local community.”
Wells Fargo Head of Multifamily Capital and Community Lending & Investment Pete Cannava said, "Chelsea Beacon will pair permanent affordable housing with the services and community support residents need to remain stably housed. Wells Fargo is pleased to support the project through construction financing and equity, working alongside Camber, the Osborne Association and the project's many public and community partners.”
Representative Jerrold Nadler said, “Chelsea Beacon will revitalize an underutilized property into a vibrant hub, providing community resources and affordable housing for New Yorkers in the Chelsea neighborhood. Americans across our nation are facing a devastating housing crisis, and this struggle is exacerbated for formerly incarcerated individuals living in New York. I am proud to have supported this project from the beginning and look forward to seeing the Bayview Correctional facility renewed to expand access to affordable housing and provide essential services to our community.”
State Senator Erik Bottcher said, “Today’s groundbreaking marks an exciting new chapter for a site that has stood vacant in the heart of Chelsea for far too long. Chelsea Beacon is a powerful example of how we can reimagine underutilized public property to address some of our most pressing needs — creating permanently affordable and supportive housing, expanding access to mental health services, and providing valuable community space, all while preserving an important piece of our neighborhood’s history. I’m especially proud that a former correctional facility will be transformed into a place that provides formerly incarcerated New Yorkers with the housing, stability, and support they need to rebuild their lives. I thank Governor Hochul, Empire State Development, Homes and Community Renewal, the Office of Mental Health, Camber Property Group, the Osborne Association, Urban Pathways, Manhattan Community Board 4 and the many community members who helped make this transformative project possible. I look forward to seeing Chelsea Beacon become a vibrant part of the West Chelsea community.”
Assemblymember Tony Simone said, “If every community in the state built affordable and supportive housing, we would be a long way towards solving the housing and homeless crisis. Turning the former Bayview Correctional Facility into Chelsea Beacon is our community doing its part. I thank Governor Kathy Hochul, Empire State Development and the Chelsea community for bringing this project to our neighborhood. I can't wait to bring this model to every corner of the state.”
Manhattan Borough President Brad Hoylman-Sigal said, “The redevelopment of the former Bayview Correctional Facility into supportive housing for formerly incarcerated people is a masterclass in marshaling the local community, elected officials, social services organizations historic resources, and state support to build housing for the vulnerable New Yorkers who need it most. I’m proud to have been part of the years long effort, alongside Manhattan Community Board 4, working with the Governor’s office, Empire State Development, New York State Homes and Community Renewal, New York State Office of Mental Health, and the State Historic Preservation Office, to create up to 131 permanently affordable housing units, a 15-unit short-term transitional residence and 9,300 square feet of community facility space. Today's groundbreaking marks an exciting next step, and I'm extremely grateful to Governor Hochul for this $167 million project in West Chelsea, which I hope serves as a model for future government investment in housing and mental health services across Manhattan and the entire state.”
New York City Council Member Carl Wilson said, “Chelsea Beacon shows what’s possible when we put vacant public land to work for New Yorkers. By transforming a former women’s prison into permanently affordable homes and supportive housing, we’re creating a foundation for stability, dignity, and opportunity, including for LGBTQIA+ New Yorkers. Tackling our housing crisis demands bold action, and Chelsea Beacon is exactly the kind of project our city needs more of.”
New York City Community Board 4 Chair Leslie Boghosian Murphy said, “The former Bayview Correctional Facility has long been identified by our Community Board as a location for potential affordable housing. There is no better example of our priorities than transforming a former women’s prison into accessible and supportive housing. It is not by chance that our district is one of the tops in all of the city to develop this type of housing and it is very exciting that advocacy will translate to meaningful action today. We thank the Governor for recognizing the need and being a great partner in this endeavor.”
Governor Hochul’s Housing Agenda
Governor Hochul is dedicated to addressing New York’s housing crisis and making the State more affordable and livable for all New Yorkers. Since FY23, the Governor has worked to increase housing supply to make housing more affordable by launching a $25 billion five-year comprehensive Housing Plan, enacting the most significant housing deal in decades and implementing new protections for renters and homeowners. Under Governor Hochul’s leadership, HCR has created new programs that jumpstart development of affordable and mixed-income homes — for both renters and homebuyers. These include the Pro-Housing Community Program, which allows certified localities exclusive access to up to $750 million in discretionary State funding. More than 450 communities throughout the state have been certified Pro-Housing, including New York City.
As part of her FY27 Budget, Governor Hochul secured a number of landmark reforms to New York’s State Environmental Quality Review Act (SEQRA) to speed up housing and infrastructure development and lower costs as part of her “Let Them Build” agenda. “Let Them Build” also includes executive actions to expedite critical categories of projects that have been consistently found to not have significant environmental impacts, but for too long have been caught up in red tape and subject to lengthy delays.
The FY27 Enacted Budget completes the Governor’s current five-year Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations plus the electrification of an additional 50,000 homes. More than 87,000 affordable homes have been created or preserved to date. The Executive Budget also invests $250 million in capital funding to accelerate the construction of thousands of new affordable homes.
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