Work to convert a former state prison in Chelsea into permanently affordable housing is officially underway. Developed by Camber Property Group and Osborne Association and designed by COOKFOX, Chelsea Beacon transforms the long-vacant Bayview Correctional Facility at 550 West 20th Street into 130 permanently affordable homes, including supportive units and short-term transitional residences. The $167 million project, which broke ground this summer, redevelops an eight-story Art Deco building that was built in the 1930s as dorms for sailors, preserving its historic brick facade and second-floor chapel, while also adding an expansion to the original structure.
Designed in 1931 by Shreve, Lamb and Harmon, the firm behind the Empire State Building, the Art Deco building was constructed as the Seamen’s House YMCA, which housed “seafaring merchants” in single-occupancy rooms, according to the New York Times.
The building served as a drug treatment center from 1967 until 1974, when the operation was transferred to the state’s Department of Correctional Services. The Bayview Correctional Facility was in operation until flooding from Hurricane Sandy forced it to close in 2012, as 6sqft previously reported.
In September 2023, Hochul issued a request for proposals (RFP) to redevelop the former prison as a residential development with affordable and supportive housing. The RFP required at least 60 supportive housing units and 15 short-term transitional residences.
The state previously issued two RFPs to convert the property, in 2013 and 2014, but both were ultimately canceled after respondents were unable to move forward with their proposals and withdrew from the projects.
In July 2024, the state selected Camber Property Group and Osborne Association to redevelop the site as “Liberty Landing,” in collaboration with Empire State Development (ESD). The project has since been renamed, though its plans and scope appear to remain largely unchanged.
Apartments at the development will be affordable to households earning up to 80 percent of the area median income. The project will also include roughly 9,300 square feet of community space.
Chelsea Beacon will include a 15-bed Short-Term Transitional Residence, a new program that provides people living with mental illness with intensive support as they develop skills over a 120-day period before moving to a more independent housing setting.
Osborne will operate the supportive housing, while Urban Pathways will manage the short-term transitional program, according to COOKFOX.
The architects will preserve the building’s historic character while incorporating modern sustainability and resilience features, including all-electric building systems. The building’s street-facing facades and structures will be “entirely reimagined,” while the interior will feature a mix of studio, one-, and two-bedroom residences.
Historic elements, including the building’s chapel, will also be restored and incorporated into the development. The chapel will be repurposed as a residential library, while a series of nautical mosaic murals from the facility’s former indoor swimming pool will be featured in the new residential lobby.
“The start of construction of Chelsea Beacon represents exactly the kind of bold, innovative project New York needs as we work to tackle our housing shortage and build stronger communities,” Hochul said.
“By transforming a long-vacant state property into permanently affordable homes, supportive housing and welcoming community space, we are creating new opportunities for New Yorkers to live, work and thrive.”
Bayview Correctional Facility was selected for redevelopment after Hochul issued a series of executive orders in July 2023 directing state agencies to identify vacant properties across the five boroughs suitable for redevelopment as affordable housing.
A late 2022 report examined 12 closed prisons across the state and their potential for reuse. In addition to Bayview, Hochul issued RFPs for the Lincoln Correctional Facility in Harlem and the Downstate Correctional Facility in Fishkill.
The governor in 2023 unveiled Seneca, the winning proposal for a project that will transform the Lincoln Correctional Facility at West 110th Street into 105 affordable homes for purchase. The development team closed on $97.8 million in financing this past May.
“Chelsea Beacon demonstrates how thoughtful public investment and strong partnerships can transform an underutilized property into a lasting community asset,” Hope Knight, CEO and commissioner of ESD, said.
“Through the adaptive reuse of this historic building, the project will expand affordable housing opportunities, deliver critical services and strengthen Chelsea’s economic future,” she added. “Chelsea Beacon reflects Empire State Development’s commitment to creating projects that honor a community’s history while meeting its needs for generations to come.”
The project is financed by federal and state Low-Income Housing Tax Credits from the state’s Homes and Community Renewal, which are expected to generate $77 million in equity, along with a $25 million HCR subsidy. ESD is providing an additional $20 million through its NY RUSH program.
Chelsea Beacon is also receiving $13.86 million in capital funding from the state’s Office of Mental Health, part of Hochul’s $1 billion investment in the mental health system included in the fiscal year 2024 budget.
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