Governor Kathy Hochul today announced the start of construction on 1760 Third Avenue in East Harlem, a 433-unit affordable and supportive housing project in East Harlem that is the first residential project to get underway using capital financing through her landmark $1 billion mental health initiative. Funded by New York State Homes and Community Renewal and New York City Department of Housing Preservation and Development with support from the Office of Mental Health and the Office of Temporary and Disability Assistance, the $264 million project will transform a vacant former CUNY dormitory into affordable apartments, including 261 units of supportive housing for individuals living with mental illness.

“By investing state resources into communities like Harlem, we can create the modern, affordable apartments that New Yorkers need,” Governor Hochul said. “This development on Third Avenue will bring new life to a vacant building by transforming it into affordable apartments that over 400 households will be able to enjoy for generations to come.”

Breaking Ground, the project developer, will transform the vacant structure at 1760 Third Avenue into a 433-unit mixed-use development for households earning up to 60 percent of the Area Median Income. The redeveloped property will include 261 units reserved for formerly homeless individuals living with serious mental illness, with services provided by Breaking Ground.

The project will include a subset of units for young adults aging out of foster care or who have experienced homelessness. Onsite support services will include case management, medical and mental health care, benefits and entitlement counseling, and connections to employment.

The renovations to the building will incorporate sustainability measures such as energy-efficient rooftop air conditioners and hydronic heating system pumps that use water—rather than air—to transfer heat. The building will also feature water-conserving plumbing, efficient lighting, vegetative roofs and ENERGY STAR ® refrigerators to support cleaner living.

The outdoor spaces along Third Avenue will also be transformed, creating new public-facing areas with landscaping, seating, and community-focused spaces. Constructed in 1974, the 1760 Third Avenue building originally housed a Florence Nightingale Nursing Center. The structure was later converted into a dormitory for the City University of New York’s Hunter College and Baruch College.

The project received $75 million from HCR’s Supportive Housing Opportunity Program and a $24.6 million first mortgage structured as a 501(c)3 bond from its Housing Finance Agency. In addition, the development was awarded $126 million from the New York City Department of Housing Preservation and Development’s Supportive Housing Loan Program.

In the past five years, HCR has financed nearly 6,600 affordable homes in Manhattan. 1760 Third Avenue continues this effort and complements Governor Hochul’s $25 billion five-year Housing Plan which is on track to create or preserve 100,000 affordable homes statewide.

The State Office of Mental Health provided $21 million through Governor Hochul’s landmark $1 billion mental health initiative, which included funding to establish 3,500 units of specialized housing. So far, the mental health initiative has established nearly 1,300 new units including supportive housing and apartment treatment units, with 2,150 capital housing units in the pipeline. OMH has conditionally awarded more than $831 million in capital for community residence single room occupancy, supportive single room occupancy, and transitional residential units.

The project also received $10 million through the New York State Office of Temporary and Disability Assistance’s Homeless Housing and Assistance Program and a $2 million discretionary capital grant from New York City Council Member Diana Ayala from Fiscal Year 2024. The New York City Acquisition Fund provided an acquisition loan originated by the Low-Income Investment Fund. Wells Fargo is providing the construction letter of credit.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “This $264 million development is a testament to the power of innovation in addressing New York’s housing crisis. By transforming this former college dorm into affordable and supportive homes, we can provide security, stability, and a way forward for more than 430 individuals, families, and young people in need. 1760 Third Avenue exemplifies the Governor’s commitment to creating housing opportunities that are accessible, sustainable, and supportive for all New Yorkers, particularly the most vulnerable members of our community. We thank our partners, including Breaking Ground, for their collaboration on this important project.”

New York State Office of Mental Health Commissioner Dr. Ann Sullivan said, “Supportive housing provides critical services that enable people living with mental illness to live and thrive in their communities. The project to redevelop 1760 Third Avenue will fill an important need in the East Harlem area and will provide much needed housing stability for individuals experiencing homelessness, including 261 units for those living with mental illness. This project demonstrates Governor Hochul’s continued commitment to increasing specialized housing for New Yorkers living with mental illness.”

New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn said, “We are grateful to Governor Hochul for making landmark investments to expand supportive housing across New York State, recognizing that stable housing is the foundation for stable health, a stable life, and strong communities. The 1760 Third Avenue project will provide residents who have experienced homelessness with safe, affordable, energy-efficient apartments they can call home and onsite access to support services that will help them thrive in their community. Thank you to all our project partners and special thanks to Breaking Ground for their longtime leadership in providing supportive and transitional housing.”

Assemblymember Edward Gibbs said, “Today, we celebrate a major milestone in our collective effort to address the affordable housing crisis and provide supportive services to those who need it most. The groundbreaking of 1760 3rd Avenue marks a significant step forward in our mission to create a more just and equitable society. As we continue to address the affordable housing crisis, projects like this remind us that together, we can create a more just and equitable society for all. I'm honored to play a part in supporting this project, and I look forward to seeing the positive impact it will have on our community.”

New York City Council Member Diana Ayala said, “We are excited to celebrate the start of construction at 1760 Third Avenue. Our office was pleased to have invested $2 million in capital discretionary funding in this project and we look forward to welcoming residents home once construction is complete. Thank you to all our partners.”

Breaking Ground President and CEO Brenda Rosen said, “Transforming underutilizing buildings like 1760 Third Avenue into much-needed affordable and supportive housing is an unparalleled opportunity – not only for the individuals who will soon call it home but also for the future of adaptive reuse development in our city. We are grateful that our public and private sector partners share our vision to create hundreds of safe, stable homes while preserving and revitalizing existing infrastructure. As we begin renovations, we mark an exciting milestone in our commitment to expanding services in Harlem and ensuring more New Yorkers have access to the housing and support they need.”

Low Income Investment Fund Director Northeast Region Molly Anderson said, “LIIF was honored to work with NYS Homes and Community Renewal, NYC Department of Housing Preservation and Development, and NYS Office of Temporary and Disability Assistance to secure a $29.5 million acquisition and predevelopment loan in partnership with the New York City Acquisition Fund. This collaboration made a complex transaction a reality – and solidifies our relationship with a mission-aligned recipient, Breaking Ground, as we continue to strengthen historically underserved New York City communities such as East Harlem.”

Wells Fargo Head of Public Affairs Jason Rosenberg said, “We thank Breaking Ground and the many community partners and neighbors who participated in bringing a long-term supportive and affordable housing option to East Harlem, strengthening the community and making lives better. We were pleased to provide Breaking Ground with $24.9 million in construction financing which will help enable them to transform the property into permanent housing, plus a $500,000 grant from the Wells Fargo Foundation to provide amenities that will help residents feel at home for decades to come.”

New York City Department of Housing Preservation and Development Commissioner Adolfo Carrion, Jr. said, “It is truly fitting to see this building continue its service to this community, first in public health, then as a home for CUNY students and now by providing hundreds of affordable supportive homes and deepening our city’s commitment to affordable housing in Harlem. This success story is another example of the effective collaboration of the City and State, across multiple agencies, to bring dynamic programming, advance green construction design, and inclusive housing solutions to create investments that tackle the drivers of our housing crisis. HPD is proud to be part of the team and excited for the individuals and families that will call this place home”

Governor Hochul’s Housing Agenda

Governor Hochul is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives for Upstate communities, new incentives and relief from certain state-imposed restrictions to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on state-owned property, an additional $600 million in funding to support a variety of housing developments statewide and new protections for renters and homeowners. In addition, as part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. More than 55,000 homes have been created or preserved to date.

The FY25 Enacted Budget also strengthened the Pro-Housing Community Program which the Governor launched in 2023. Pro Housing Certification is now a requirement for localities to access up to $650 million in discretionary funding. Currently, 275 communities have been certified, including New York City.