Construction began Sept. 15 on Chelsea Beacon, a $167 million project to convert the former Bayview Correctional Facility at 550 W. 20th St. in West Chelsea, Manhattan, into permanent affordable housing. Up to 131 units will be set aside for households earning 80% or less of area median income. The site will also include 15 short-term residential rooms for people who need mental health support and 9,300 square feet of community space. Work is scheduled to be completed in 2029.
Construction began Sept. 15 on Chelsea Beacon, a project to convert the former Bayview Correctional Facility at 550 W. 20th St. in West Chelsea, Manhattan, which has sat vacant for nearly 14 years, into affordable housing. Total project costs exceed $167 million, and up to 131 permanently affordable apartments will be created. Eligibility is limited to households earning 80% or less of area median income (AMI), and completion is targeted for 2029.
The building is an Art Deco structure that was built in 1930–32 as the Seamen's House YMCA, a residence for sailors. It was designed by Shreve, Lamb & Harmon, the firm behind the Empire State Building, and later served as the Bayview Correctional Facility, a women's medium-security prison. It closed after flooding from Superstorm Sandy in 2012 and has been vacant ever since. The state's Empire State Development (ESD) issued a request for proposals for its sale and redevelopment in September 2023, and in July 2024 selected a consortium of Camber Property Group and Osborne Association.
7 Units for Wheelchair Users, 3 for Residents With Hearing or Vision Disabilities
Of the 131 units, 7 will be designed to be fully accessible for wheelchair users, and 3 will be equipped for residents with hearing or vision disabilities. Separately, a 15-room short-term residential facility will be built for people going through life transitions who need mental health support and will stay there temporarily. The state Office of Mental Health (OMH) is providing $13.86 million in construction costs as well as operating funds, and Urban Pathways was selected through a competitive process to run it. Some units with supportive housing services will be set aside for people returning from incarceration.
The financing combines public and private sources. Federal and state Low-Income Housing Tax Credits allocated by the state Homes and Community Renewal (HCR) will bring in $77 million in equity, joined by $25 million in HCR subsidies and $20 million from ESD's NY RUSH program. Wells Fargo is providing construction financing and part of the equity.
Chapel and Pool Tile to Be Preserved
Following consultation with the state Historic Preservation Office and input from Manhattan Community Board 4, the design retains the existing main building and annex and adds a new wing in the courtyard. The new wing will be set back from the street and finished in brick that complements the existing facade. The chapel inside the building will be restored and used as program space, and the tile mosaic from the former swimming pool has been removed and stored, to be reinstalled in the lobby of the residential building. The building will also be fully electric, with all heating, cooling and cooking powered by electricity.
The tenant selection schedule and application process have not yet been announced. Affordable housing lotteries in New York City are typically posted a few months before completion on NYC Housing Connect (housingconnect.nyc.gov), run by the city Department of Housing Preservation and Development. Creating an account on the site in advance allows applicants to receive notices of listings they may qualify for.