New York State is seeking developers for a 6.13-acre parcel at the Mohawk Valley Psychiatric Center in Utica, with a proposed mix of at least 50 supportive apartments for people with serious mental illness and about 100 additional affordable homes.
Proposals are due Feb. 1, 2027, according to the Empire State Development request for proposals. The site is at 1400 Noyes St. in Utica's Yorkville neighborhood, within the larger 119-acre property.
The state is soliciting plans and a development team. The housing, funding structure and property transfer must still move through selection, financing and public approvals.
Supportive and affordable apartments would share the development
The solicitation calls for supportive apartments to be integrated with the broader affordable rental housing, which would serve individuals and families without an age restriction. Teams may propose additional supportive units, community facilities, retail space and open space, subject to the program's requirements.
An earlier feasibility study examined a 6.8-acre area without existing buildings. This procurement uses a smaller parcel and includes vacant Building 51, which the selected developer would demolish.
The Old Main building is outside the redevelopment parcel and would remain. The developer would remove the fence around it and provide a suitable setback for new construction.
The site borders York Street and is near active campus buildings used by the Office of Addiction Services and Supports and New York State Police. The surrounding neighborhood includes two- and three-story homes and schools.
The state wants sustainable, energy-efficient construction, adequate parking, infrastructure improvements and local job opportunities. Developers must submit community-engagement and local-hiring plans, along with designs, financing assumptions and a schedule for demolition, construction and operations.
Capital help does not include operating support
Office of Mental Health capital funding is expected for construction of apartments serving people with serious mental illness, subject to state budget approval and project-cost limits.
The organization receiving that money and operating those apartments must be a 501(c)(3) nonprofit with relevant experience and a place in the project's long-term ownership structure. For-profit companies may participate as members of a qualified team.
The procurement provides no operating funding for supportive units. The selected team would need to seek it afterward through the Empire State Supportive Housing Initiative or other sources.
OMH's capital program anticipates advancing grants during construction and replacing them upon completion with a government mortgage loan. OMH would fund debt service along with covered operating expenses under that structure.
The state may also make Redevelopment of Underutilized Sites for Housing funds available to offset demolition, roads, utilities, parking and open-space work. That statewide initiative has a $500 million capital fund and a goal of up to 15,000 homes on state-owned land; those figures describe the wider program.
Sale price, costs and approvals remain part of selection
The solicitation anticipates a fair-market-value sale, with an appraisal after a developer is designated. Applicants should use a $1 million acquisition assumption in their financial models. Empire State Development also reserves the option of a long-term ground lease.
A team advancing in the process would be responsible for the state's project-related costs and would need to deposit $300,000 into an account for legal, environmental and other expenses. The account would have to be replenished when its balance fell below $125,000, under the terms set by the state.
Developers must investigate site conditions and provide necessary remediation. The solicitation anticipates asbestos and lead work during Building 51's demolition because of the campus buildings' age.
Environmental review and historic-preservation consultation are required. The property is within a historic district eligible for state and national registers, and Building 51 is also eligible. The state anticipates a General Project Plan and public hearing before final property disposition.
The evaluation committee will include Empire State Development, OMH and Homes and Community Renewal representatives. Scoring gives 30 points to team qualifications, 25 each to the development program and financial proposal, and 20 to design and sustainability.
Site visit and questions have November deadlines
A voluntary site tour is scheduled for Nov. 16, with registration due Nov. 10. Written questions are due Nov. 23, and state responses are expected around Dec. 4.
Proposals must be uploaded through the submission link in the solicitation; email and paper submissions will not be accepted. The state may revise the schedule, and updates will be posted on the procurement page.
Questions and tour registration go to MohawkValleyUtica2026RFP@esd.ny.gov.
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