Alliance Alert: We applaud Governor Hochul and New York State for moving forward with plans to redevelop underutilized land at the Mohawk Valley Psychiatric Center into affordable and supportive housing, including at least 50 supportive housing units for people with serious mental health challenges and approximately 100 additional affordable housing units.
This initiative is a great example of what New York can accomplish by rightsizing our state psychiatric hospital system and redirecting resources toward community-based services and housing. By using our state hospital system more efficiently, we can reinvest savings into mental health and substance use services that help people leave institutional settings, maintain their recovery, and thrive in their communities. Redeveloping underutilized hospital properties into housing and other community resources can further expand opportunities for recovery and community integration.
Last year, the Alliance fought for the creation of a State Psychiatric Hospital Rightsizing Commission to examine how New York can more effectively use its state hospital resources, reduce institutionalization, and redirect funding toward voluntary, community-based services and supports. We continue to believe that a comprehensive review of our state hospital system is essential to ensuring that public resources are used to support the greatest number of New Yorkers in the settings that best meet their needs.
We commend the Governor and state agencies for taking this important step and encourage them to build on this approach by investing in the ongoing services and operating supports needed to make supportive housing successful. With thoughtful planning, appropriate community investments, and a commitment to helping people live outside institutional settings, New York can transform underutilized state resources into lasting opportunities for housing, recovery, and community inclusion.
NYS Seeking Proposals for Mohawk Valley Psych Center Redevelopment
By Josh McMullen | CNY Homepage | October 26, 2026
ALBANY/UTICA, NY (WUTR/WFXV/WPNY) — Governor Kathy Hochul is asking for proposals for the redevelopment of land at the Mohawk Valley Psychiatric Center.
Governor Hochul has requested that any proposal include plans for both affordable and supportive housing, along with space for supportive services. The six-acre site encompasses both the old Utica State Hospital and the former Marcy State Hospital.
“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,” Governor Hochul said in a statement. “By launching this redevelopment process in the City of Utica, my administration is taking another step forward in expanding access to supportive and affordable housing while transforming underutilized land in the Mohawk Valley.”
The Utica State Hospital was first opened in 1843 as the first state-run mental health facility in New York State. 68 years later, the Marcy State Hospital was established to house any patients transferred from the Utica State Hospital. The two hospitals merged in 1983 and became the Mohawk Valley Psychiatric Center Campus, which is still run by the Office of Mental Health today.
Currently, the center serves 14 counties in eastern New York, including Oneida and Herkimer Counties.
“I would like to thank the Governor and her administration for recognizing the direct need for supportive housing that would serve individuals affected by mental health instability,” Utica Mayor Mike Galime said in a statement. “It is clear this administration’s direct advocacy was heard and integrated into this project, and this RFP is a milestone decision for the reuse of this campus. Thank you to all involved.”
Proposals must also include the demolition of any existing buildings and infrastructure improvements needed to facilitate the development. Any plans should include at least 50 units of supportive housing and another 100 units of affordable housing. Any plan approved by the state would also expect to be awarded capital funding from the Office of Mental Health for the construction of the supportive housing units.
“Mental health services must always be a priority, and this project is a meaningful step toward ensuring that the Mohawk Valley Psychiatric Center Campus continues to serve our community and the people who rely on it,” Assemblywoman Marianne Buttenschon said in a statement. “Restoring and building residential and supportive housing capacity is essential to making sure individuals living with mental illness have a safe, stable place to receive the care and support they deserve. This has been a long work in progress that required collaboration at every level to reach this point, and I want to thank the Governor and all of the state and local agencies that have supported these efforts.”
Currently, the state runs 24 psychiatric facilities, including the Noyes Street campus. The campus currently runs clinic programs in Utica, Rome and Herkimer, as well as other services in Rome and residential facilities in Whitesboro and Yorkville.
“Expanding access to affordable and supportive housing is essential to meeting the needs of our residents and strengthening our communities,” Oneida County Executive Anthony Picente said in a statement. “Redeveloping underutilized property on the Mohawk Valley Psychiatric Center campus presents an opportunity to put this land to productive use while creating housing options for individuals and families in Utica. I look forward to seeing this project move forward and deliver lasting benefits for Oneida County.”
Responses to New York State are due by February 1.
NYS seeking proposals for Mohawk Valley Psych Center redevelopment
Governor Hochul Announces Request for Proposals to Redevelop Six Acres on Mohawk Valley Psychiatric Center Campus for Residential Development
October 26, 2026
Proposals Must Include Supportive and Affordable Housing
Represents Latest in Governor’s Commitment to Redeveloping Underutilized State-Owned Properties
Governor Kathy Hochul today announced the launch of a competitive Request for Proposals (RFP) for the redevelopment of six acres of property located within the Mohawk Valley Psychiatric Center Campus in Utica, Oneida County. The 6.13-acre site is part of the 119-acre campus that encompasses the old Utica State Hospital and the former Marcy State Hospital. The RFP is seeking respondents who will transform the underutilized state-owned property into supportive and affordable housing, further advancing Governor Hochul’s bold housing agenda. Responses are due by February 1, 2027.
“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,” Governor Hochul said. “By launching this redevelopment process in the City of Utica, my administration is taking another step forward in expanding access to supportive and affordable housing while transforming underutilized land in the Mohawk Valley.”
Respondents are invited to propose a development plan with both affordable and supportive housing, along with space for supportive services, if feasible. Plans should include at least 50 units of supportive housing for people with serious mental illness, and approximately 100 additional units of affordable housing. This RFP is expected to award capital funding from the Office of Mental Health (OMH) for the construction of the supportive housing units; however, operating funding is not available through this procurement.
Proposals must also address the demolition of existing buildings and infrastructure improvements necessary to facilitate the development. As part of Governor Hochul’s $500 million Redevelopment of Underused Sites for Housing (NY-RUSH), funding is available to offset associated costs. First secured by the Governor in the FY25 Enacted Budget, the NY-RUSH initiative is designed to accelerate the development of housing by building on underutilized state properties.
Empire State Development President, CEO and Commissioner Hope Knight said, “Under Governor Hochul’s leadership, New York State is taking bold steps to transform underutilized properties into vibrant, community-centered assets. By launching this RFP, we are not only breathing new life into a historic Utica campus, but we are also delivering on our commitment to creating the affordable and supportive housing that New Yorkers need to thrive.”