Nearly $98 million in state funding heads to Rochester to expand and preserve affordable housing across the city

Rochester, New York – Nearly $100 million in state funding is on its way to Rochester, marking a significant boost for affordable housing efforts in the city and the wider Finger Lakes region. The investment is part of Governor Kathy Hochul’s ambitious $25 billion, five-year plan aimed at expanding housing affordability and stability across New York State.

The funding, awarded through New York State Homes and Community Renewal, will support two major housing developments in Rochester that together will create and preserve 282 affordable apartments. State officials say the projects are designed to serve low- and moderate-income households while also promoting sustainability and long-term neighborhood strength.

The largest share of the funding, totaling $58 million, has been allocated to Gateway Apartments, a major adaptive reuse project in downtown Rochester. The development will transform a long-vacant office building into 129 affordable apartments, breathing new life into an underused structure in the city’s core. All units will be affordable to households earning up to 80 percent of the area median income. The project is being developed by Gateway Preservation and is expected to play a key role in revitalizing the surrounding downtown area.

In addition to new construction, the state is also investing heavily in preservation. An additional $40 million will support the rehabilitation of Los Flamboyanes, a 153-unit Mitchell-Lama housing development located in Rochester’s Upper Falls neighborhood. The preservation effort will ensure that rents remain affordable for households earning up to 60 percent of the area median income. Landsman Development Corporation is leading the project, with development consulting provided by CSD Housing.

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State leaders emphasized that preserving existing affordable housing is just as important as building new units, particularly as many long-standing developments face rising maintenance costs and aging infrastructure. The Los Flamboyanes project is expected to modernize the property while maintaining affordability for current and future residents.

Both Rochester developments are required to meet high standards for energy efficiency and sustainability, aligning with New York’s broader climate and environmental goals. Officials say features such as improved insulation, energy-efficient systems, and modern building materials will help lower utility costs for residents while reducing environmental impact.

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When combined with private investment, the two projects are expected to support broader neighborhood stabilization, encourage economic development, and strengthen housing security in Rochester. Local leaders see the funding as a critical step toward addressing housing shortages and affordability challenges that have intensified in recent years.

The Rochester awards are part of a much larger statewide effort. Nearly $2 billion has been committed to 24 housing developments across New York, a move that will create or preserve more than 6,600 affordable and supportive homes. State officials say these investments reflect a continued focus on ensuring safe, affordable housing remains within reach for New Yorkers in every region.