New York State is seeking a development partner to convert underused state-owned land in Utica into affordable and supportive housing, creating a potential construction opportunity that combines residential development, demolition and infrastructure work.
Announced October 26, 2026, the request for proposals covers 6.13 acres within the 119-acre Mohawk Valley Psychiatric Center campus in Oneida County. The wider campus encompasses the former Utica State Hospital and former Marcy State Hospital properties.
The procurement is part of the state's effort to repurpose underutilised public property to help address housing needs. Responses are due by February 1, 2027.
Proposals must include at least 50 supportive housing units for people with serious mental illness, alongside approximately 100 additional affordable housing units. Respondents may also propose space for supportive services where feasible.
The state expects the procurement to provide capital funding through the New York State Office of Mental Health for construction of the supportive housing units. Operating funding for those units is not included, a distinction prospective developers will need to account for in their project planning.
The selected development plan must also address the demolition of existing buildings and infrastructure improvements required to prepare the site for residential use.
The project is connected to New York's $500 million Redevelopment of Underused Sites for Housing initiative, known as NY-RUSH. The programme is designed to accelerate housing development on underutilised state properties, with funding available to offset certain costs associated with redevelopment.
For prospective development teams, the combination of demolition, infrastructure preparation and mixed affordable housing requirements will be important factors in assessing project feasibility. The final scope and financial structure will depend on proposals submitted through the competitive process.
The Utica opportunity illustrates how publicly owned former institutional properties can become potential sites for residential construction. Developers and contractors may find work in demolition, site preparation, utility and infrastructure upgrades, and multifamily housing delivery.
The required mix of supportive and affordable housing also makes coordination among developers, construction teams and public-sector housing agencies central to the project. The February 2027 submission deadline gives interested teams a defined timetable to develop proposals and assess the site's construction requirements.
Source: ESD.
