Governor Hochul Announces Start of Construction on 433-Unit Affordable Housing Project in East Harlem

Work Begins To Transform Vacant CUNY Dormitory at 1760 Third Avenue Into Affordable and Supportive Housing

First Supportive Housing Project To Get Underway Utilizing Capital Funding from the Governor’s Landmark $1 Billion Mental Health Initiative

Governor Kathy Hochul 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.