Regan Development Corporation Breaks Ground on $37 Million, 78-Unit Affordable Housing Project in Dunkirk, NY

Regan Development Corporation has broken ground on Homesteads at Dunkirk Landing, a $37 million affordable and supportive housing development that will bring 78 apartments to downtown Dunkirk in Chautauqua County, New York. Governor Kathy Hochul announced the construction start on Aug. 17, 2026, describing the project as part of the state's broader effort to convert vacant and blighted properties into housing supply.

Project Overview: Two Buildings, Mixed-Use Component

The development will be built across two sites located within two blocks of one another. A building on Washington Avenue will contain 48 apartments, while a second building on East Fourth Street will contain 30 apartments. The East Fourth Street building will also include approximately 5,900 square feet of commercial space planned for a childcare center. Both sites sit within Dunkirk's Brownfield Opportunity and Downtown Revitalization Initiative areas and replace vacant and blighted properties.

Units will be affordable to households earning up to 70 percent of the Area Median Income. The development will offer a mix of one-, two-, and three-bedroom apartments to accommodate families of varying sizes. Eight units are designed to accommodate residents with mobility impairments, and four units are designed for residents with sensory disabilities.

Sixteen of the 78 apartments are reserved as supportive housing for eligible veterans with disabilities who have experienced homelessness. On-site services for those residents will be provided by Soldier On, a nonprofit organization that offers housing and support services to veterans. Those units will be supported by an Empire State Supportive Housing Initiative award administered by the New York Office of Temporary and Disability Assistance.

The project will also include community rooms and a playground. Both buildings are designed to meet 2020 Enterprise Green Communities Plus standards, EPA Energy Star Multifamily New Construction, EPA Indoor airPLUS, and U.S. Department of Energy Zero Energy Ready Homes criteria. The buildings will be all-electric, feature on-site solar panels, and include electric vehicle charging.

Financing Structure: Layered Public and Private Sources

Homesteads at Dunkirk Landing is financed through a combination of public and private sources. Federal and state Low-Income Housing Tax Credits allocated by New York State Homes and Community Renewal are expected to generate $19 million in equity. HCR is also providing $9 million in direct subsidy. Empire State Development is contributing $200,000 in infrastructure funding. The project is also receiving a $1 million award from the Department of State's Downtown Revitalization Initiative.

The layered capital structure — drawing on housing tax credits, supportive housing funding, brownfield incentives, infrastructure aid, and downtown revitalization dollars — reflects the complexity typical of affordable mixed-use infill projects in markets where new construction costs outpace achievable rents. HUD fair market rents in Dunkirk are listed at $680 for a studio, $754 for a one-bedroom, $975 for a two-bedroom, and $1,287 for a three-bedroom unit, levels that make unsubsidized new construction difficult to underwrite.

Downtown Revitalization and Market Context

The two project sites are located within Dunkirk's Brownfield Opportunity and Downtown Revitalization Initiative areas. The Washington Avenue site was assembled from parcels previously occupied by Paradis Fencing and Flag. The East Fourth Street site included a former Family Dollar and a former Veterans Affairs clinic in a partially demolished strip plaza, identified in state brownfield documents at 166 East 4th Street.

Dunkirk's rental market is characterized by extremely tight conditions. The city's rental vacancy rate stands at 0 percent, with an estimated 1.03 rental units per renter household. Local housing projections indicate the city needs approximately 473 new units over the next five years to meet demand and account for replacement need.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said the agency is "proud to work with Regan Development Corporation, Soldier On and our State and local partners to bring this important project to life." New York Secretary of State Walter T. Mosley said the project "demonstrates what can happen when we pair strategic investments in downtowns with a commitment to expanding affordable housing."

Larry Regan, president of Regan Development Corporation, said the firm and Soldier On are "proud to serve as tools to create new housing and redevelop these two sites in the core of the City of Dunkirk," adding that the project draws on funding from HCR, the Department of Environmental Conservation, Empire State Development, the Department of State, and the Office of Temporary and Disability Assistance to meet multiple state housing goals.

State Housing Plan Context

Homesteads at Dunkirk Landing is part of Governor Hochul's $25 billion five-year Housing Plan, which targets the creation or preservation of 100,000 affordable homes statewide. New York State Homes and Community Renewal has created or preserved close to 86,000 affordable homes toward that goal to date. Under that plan, HCR has created or preserved more than 600 affordable homes in Chautauqua County.

The City of Dunkirk is a certified Pro-Housing Community, a designation that allows localities exclusive access to up to $750 million in discretionary state funding. There are currently 450 certified Pro-Housing communities throughout New York State.

Governor Hochul's FY27 Executive Budget includes $250 million in capital funding to accelerate affordable housing construction and completes the current five-year plan, which also targets the electrification of an additional 50,000 homes and the creation of 10,000 units with support services for vulnerable populations.