A $147 million, 187-unit mixed-use affordable housing development has broken ground in Poughkeepsie at the Wallace Campus on Main Street.
New York Gov. Kathy Hochul announced the beginning of construction at the former Wallace Department Store on May 27, as part of her $25 billion five-year housing plan, launched in fiscal year 2023. The plan’s goal is to create 100,000 affordable homes statewide.
Sixty-nine apartments and 118 units across two new buildings will provide a mix of studios, one-bedroom units, two-bedroom units and three-bedroom units. The development will include 22,000 square feet of ground-floor commercial retail space across all three buildings.
“Wallace Campus will not only create new affordable housing opportunities on Poughkeepsie’s Main Street Corridor but will also bring new economic activity to the city and preserve an important piece of Poughkeepsie’s history,” Hochul said in a statement. “This is more than an investment in a project; this is an investment in downtown Poughkeepsie and its future.”
The project will be developed by Mega Development Group and Ametrine Group, in partnership with on-site social services provider Mental Health America of Dutchess County, according to Hochul’s office.
Thirty units will be reserved for tenants eligible for on-site support services, including home health care management, community education, family support and advocacy.
Households with incomes up to 80% of the Area Median Income will be eligible for other units.
“Breaking ground on this project is a big step forward as we tackle one of the most pressing challenges facing our community: affordable housing,” City of Poughkeepsie Mayor Yvonne Flowers said in a statement. “Creating new homes that families and hard-working individuals can afford is critical to building a vibrant city where everyone has the opportunity to thrive.”
A bit of history on the 19th-century Wallace Department Store
This project will not only create affordable housing and help to revitalize Main Street but works to advance historic preservation and adaptive reuse.
The building’s limestone façade, existing stairways and the ornate dome ceiling on the fourth floor will be preserved.
The site used to be the Wallace Department Store, originally built in the 1870s. It once operated as a retail destination but closed in the 1970s.
For decades, the building remained underutilized and has been completely vacant since 2022.
“Downtown Poughkeepsie is a cornerstone of our regional economy, and Wallace Campus will make it a more vibrant, accessible place for families and businesses alike,” Mid-Hudson Regional Economic Development Council co-Chairs Marsha Gordon and Kristine Young said in a statement. “By preserving a beloved landmark, adding nearly 200 affordable homes, and creating new public green space on Main Street, this project reflects the kind of thoughtful, community-driven investment that strengthens our downtowns for the long term.”
What to expect from the Wallace Campus development
Each building will have a game room, fitness space, movie screening room, co-working space, study hall and bike storage.
It will be all-electric, with ENERGY STAR appliances, low-flow plumbing and motion sensors to limit unnecessary lighting usage.
There will also be outdoor areas for public use, featuring hard-scape pathways adorned with benches, a green space and a new children’s play area dubbed Wallace Green.
Wallace Green will have year-round, community-driven programming open to the public.
Two of the buildings will have wraparound windows on the ground floors to get tenants connected with the green space.
Plus, there will be fully accessible and adaptable apartments, with 11 units to accommodate residents with mobility impairments and five units to accommodate residents with sensory disabilities.
“This project reflects a big part of the MHA of Dutchess County’s core mission — meeting people where they are and providing housing that promotes dignity, recovery and long-term stability,” Mental Health America of Dutchess County CEO Andrew O’Grady said in a statement. “The supported apartments at Wallace Campus will offer residents not only a home, but a strong foundation for improved health and community integration.”
How is this being funded?
The Wallace Campus is heavily supported by New York State Homes and Community Renewal programs, and the HCR has created or preserved more than 9,000 affordable homes in the Hudson Valley, 1,000 of which are in Dutchess County.
These HCR programs include the Low Income Tax Credit Program, estimated to generate $46 million in equity, the HCR’s State Low Income Housing Tax Credit program, estimated to generate $12.9 million in equity, as well as $38 million from the HCR’s Supportive Housing Opportunity Program, $5 million from the HCR’s Middle-Income Housing Program and $2 million from the HCR’s Rural and Urban Community Investment Fund.
“Every family in Poughkeepsie deserves a safe and affordable place to call home,” U.S. Senator Chuck Schumer said in a statement. “I’m proud the federal Low-Income Housing Tax Credit I’ve fought hard to preserve and expand has delivered more than $46 million to convert an abandoned department store into 187 new homes for families in Dutchess County. High housing costs are a key driver of inflation so we must build more housing for working people to bring down those high prices.”
The project also has another $1.4 million coming in from the Clean Energy Initiative funding, a partnership between HCR and the New York State Energy Research and Development Authority.
The Empire State Development will provide $750,000 through its Regional Council Capital Fund Program.
Dutchess County is also pitching in, providing $2.2 million from the Dutchess County Housing Trust Fund and $540,000 from the HOME Investment Partnership Program.
The site is also participating in the New York State Department of Environmental Conservation’s Brownfield Cleanup Program, and when completed, may be eligible for $14.6 million in tax credits administered by the New York State Department of Taxation and Finance.
Lastly, another $8 million in federal historic tax credits and $5 million in state historic tax credits will be facilitated by the New York State Office of Parks, Recreation and Historic Preservation.
“This transformative development is a model for how the public and private sectors can work together to address New York’s urgent need for housing,” Mega Group Development Principal Emanuel Kokinakis said in a statement.
Nickie Hayes is Breaking & Trending News Reporter for the Poughkeepsie Journal. See her most recent articles here. Contact reporter Nickie Hayes: NHayes@poughkee.gannett.com, 845-863-3518 and @nickieehayess on Instagram.
This article originally appeared on Poughkeepsie Journal: $147M housing development breaks ground on Main Street in Poughkeepsie
Reporting by Nickie Hayes, Poughkeepsie Journal / Poughkeepsie Journal
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