New York lawmakers look to turn more vacant upstate buildings into housing

New York Public News Network | By Samuel King

Published March 12, 2026 at 7:07 PM EDT

Construction crews remove debris from the demolition of former escalators inside what was once an office building being converted into the Gateway Apartments in downtown Rochester. The development on East Main Street will include studio, one- and two-bedroom units ranging from about 875 to 1,800 square feet — roughly the size of a modest three-bedroom house.

New legislation in Albany aims to boost the conversion of vacant office space into housing in upstate communities.

The legislation sponsored by Sen. Pat Fahy of Albany and Assembly Majority Leader Crystal Peoples-Stokes of Buffalo would allow developers to take greater advantage of tax credits to help boost office conversions.

“We've got to use every tool in the toolbox in order to grow housing,” Fahy said. “If we don't grow housing, we're going to continue to see prices go up.”

Fahy said too much office space upstate is sitting vacant since work habits changed with the COVID-19 pandemic. In upstate markets like Albany, Rochester and Buffalo, more than 20% of downtown office space is vacant.

“And it's dated office, it's not the prime office space, so giving an incentive to convert those office buildings to housing is really a win-win, because some of that is just not coming back. If anything, often people want the newer office buildings.”

Building contractors meet to discuss demolition and the apartment buildout inside what was once office space being converted into the Gateway Apartments in Rochester, N.Y. The development will include studio, one- and two-bedroom units ranging from about 875 to 1,800 square feet—roughly the size of a modest three-bedroom house. The building sits midblock between St. Paul Street and North Clinton Avenue. — Building contractors meet to discuss demolition and the apartment buildout inside what was once an office building being converted into the Gateway Apartments in downtown Rochester. The East Main Street development will include studio, one- and two-bedroom units ranging from about 875 to 1,800 square feet — roughly the size of a modest three-bedroom house.

New York City has seen a boost in office conversions since launching a similar tax credit program was launched there, according to a New York City Comptroller’s report. At the local level, including in Rochester and Monroe County, officials are taking additional steps to expand incentives to encourage not just affordable but also market-rate housing.

Rochester already has seen a wave of office-to-residential conversion projects in its downtown. That is continuing with one currently under construction on East Main Street led by affordable housing developer SAA|EVI. Managing partner Connor Kenney said the proposed legislation would help make the numbers work for similar projects.

“I think in many cases, it makes a lot of sense to repurpose office space to residential, but you know, there's going to be challenges when you go through that repurposing process,” he said. “And any sort of tax credit is going to help defray the added cost of the repurpose.”

A steel beam is welded into place inside what was once office space being converted into the Gateway Apartments in Rochester, N.Y., before a section of floor is removed to create an atrium that will allow light to reach all seven floors. The development will include studio, one- and two-bedroom units ranging from about 875 to 1,800 square feet—roughly the size of a modest three-bedroom house. The building sits midblock between St. Paul Street and North Clinton Avenue.

Other legislation also seeks to leverage vacant commercial properties for housing redevelopment. A bill from Assemblymember Michaelle Solages, D-Nassau County, and Sen. James Skoufis, D-Orange County, would reduce rules on redeveloping properties such as shopping malls and business centers if certain criteria is met.

Gov. Kathy Hochul has made housing a priority, including a proposal that would streamline environmental reviews for certain housing projects.