New York Seeks Proposals for Supportive and Affordable Housing in Utica

New York State is seeking development proposals for a 6.13-acre parcel within the Mohawk Valley Psychiatric Center Campus in Utica, Oneida County. The site is part of a 119-acre campus encompassing the old Utica State Hospital and the former Marcy State Hospital. The competitive RFP asks respondents to convert underutilized state-owned property into residential development combining supportive and affordable housing. Responses are due February 1, 2027, giving prospective teams a defined procurement schedule for site assessment, development planning, financing, and proposal preparation.

The RFP sets a substantial mixed-housing requirement: proposals should include at least 50 supportive housing units for people with serious mental illness and approximately 100 additional affordable housing units. Respondents may also propose space for supportive services if feasible. This makes the opportunity relevant to developers and organizations able to coordinate real estate delivery with housing and service-provider partners. Teams will need to demonstrate how the proposed site plan can meet both the unit targets and the service needs of residents, while accounting for the campus setting and the work necessary to prepare the property for construction.

Site preparation is a central part of the procurement. Proposals must address demolition of existing buildings and infrastructure improvements needed to facilitate development, so teams should incorporate these requirements into site assessments, schedules, cost estimates, and risk plans. The announcement says Office of Mental Health (OMH) capital funding is expected for construction of the supportive housing units. It also identifies the $500 million Redevelopment of Underused Sites for Housing (NY-RUSH) initiative as a potential source of funding to offset associated costs. However, the announcement does not specify a project-level funding amount or confirm a particular allocation. Proposers should therefore distinguish anticipated funding sources from committed project financing.

The funding structure also has an important operating implication: the RFP does not provide operating funding for the housing. Applicants will need to plan separately for ongoing property operations and, where applicable, supportive services. Governor Kathy Hochul framed the initiative as part of the state’s effort to repurpose public property and respond to housing needs, saying, “We are committed to giving state-owned properties a new life as we address New York’s housing needs while creating new opportunities for communities to thrive.” For GovCon and community-development stakeholders, the opportunity combines state land redevelopment, housing construction, demolition, infrastructure work, and potential capital support, but requires careful validation of financing and operating assumptions before submission.

• The RFP covers a 6.13-acre parcel within the 119-acre Mohawk Valley Psychiatric Center Campus in Utica, Oneida County.
• Responses are due February 1, 2027; prospective teams should plan backward from the deadline for site review, partner coordination, and proposal development.
• Proposals should include at least 50 supportive housing units for people with serious mental illness and approximately 100 additional affordable units.
• Respondents may include space for supportive services if feasible; service-provider coordination may strengthen development planning.
• Proposals must address demolition of existing buildings and necessary infrastructure improvements.
• OMH capital funding is expected for construction of the supportive units, but no project-specific amount is stated in the announcement.
• NY-RUSH, a $500 million statewide initiative, may help offset associated costs; the announcement does not confirm a specific award or allocation for this site.
• The procurement does not provide operating funding, so applicants should identify separate plans for ongoing housing operations and services.
• The RFP advances New York’s effort to redevelop underused state-owned properties for housing, with the state and City of Utica context relevant to project coordination and approvals.