Schenectady, N.Y., October 28, 2025 — Better Community Neighborhoods, Inc. (BCNI) today announced that eight formerly vacant spaces in Schenectady are being transformed into twenty-one new affordable apartments using State funding that was awarded to the housing and community development organization last year. Additional projects are in the pipeline and BCNI continues to accept applications for the Schenectady City Vacant Property Improvement Program (VPIP).
“To meet the demand for high quality, affordable housing, BCNI is turning vacant buildings into new homes,” said Matthew Nelson, BCNI’s CEO. “We are now under contract with seven projects across the city and we invite interest from other building owners.”
Mayor Gary McCarthy said, “Schenectady is growing. To meet the demand for more housing, we are proud to partner with BCNI to turn empty buildings into great new living spaces.”
“The Land Bank is pleased to support this effort to turn vacant spaces into new homes for Schenectady families,” said Richard Ruzzo, Chair of the Capital Region Land Bank and Majority Leader of the Schenectady County Legislature.
New York State Homes and Community Renewal Commissioner Ruth Anne Visnauskas said, “The Vacant Rental Improvement Program is helping upstate communities like Schenectady turn neglected buildings into affordable homes. With up to $75,000 available per unit, property owners can revitalize vacant spaces and create the safe, quality housing people need. We’re proud to invest $3.75 million to support BCNI’s efforts to expand housing supply by breathing new life into dormant buildings. Soon 21 families will have an affordable place to call home, with more on the way. Thank you BCNI, the Capital Region Land Bank, and the City of Schenectady for your commitment to empowering residents and improving communities through housing.”
In 2024, BCNI, in partnership with the Schenectady County Metroplex Development Authority, the Capital Region Land Bank and the City of Schenectady, received a grant worth $3.75 million from NYS Homes and Community Renewal through the State’s $40 million Vacant Rental Program (VRP). The goal of VRP is to support the repair and rehabilitation of up to 600 vacant rental units and other spaces across the state so they can be transformed into safe and affordable homes for tenants. Governor Hochul announced the program as part of the FY25 Enacted Budget to restore vacant units and underutilized buildings into affordable housing for low and moderate income tenants in communities across the state outside of New York City.
Working with BCNI, eligible property owners can receive up to $75,000 per unit to cover essential rehabilitation costs in exchange for a 10-year period of affordability. All projects ensure affordability for residents earning 60% to 80% of the Area Median Income (AMI), with a limit on initial rents and annual increases. The goal is to use vacant buildings to expand housing options for individuals and working families.
The following projects are the first to receive VPIP funding:
• 12 N. Center Street – conversion of a vacant building in the City’s Little Italy neighborhood into a mixed-use building with three affordable apartments.
• 519 State Street – conversion of the former county public defenders’ office in the heart of downtown into a mixed-use building with five affordable apartments.
• 1046 Gillespie Street in the Union Triangle Historic District – will restore a long-vacant building into four modern apartments while preserving the architectural character of the building.
• 1 Yale Street – rehabilitation of a residential unit in an owner-occupied property in the Central State Neighborhood
• 417 Union Street – building rehabilitation creating four new residential units.
• 34 North Ferry Street – rehabilitation creating two residential units in the Historic Stockade Neighborhood.
• 547 Nott Street – creation of a residential unit in the Goose Hill Neighborhood.
• 423 McClellan Street – rehabilitation of a residential unit in the Central State Neighborhood.
BCNI is actively accepting applications from property owners. This is a limited, state-supported opportunity to access up to $75,000 per unit to bring housing back online, strengthen neighborhoods, and meet Schenectady’s need for affordable rentals. Property owners are strongly encouraged to apply while funding remains available.
For details and to apply, contact BCNI at 518-372-7616 or visit bcnihousing.org.
About Better Community Neighborhoods, Inc. Better Community Neighborhoods, Inc. (BCNI) is a nonprofit housing and community development organization dedicated to revitalizing neighborhoods, increasing access to quality affordable housing, and fostering economic opportunity in Schenectady. Learn more at bcnihousing.org or call 518-372-7616.
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