From Razor Wire to Redevelopment: New York’s Plan to Reuse Closed Prisons

[1]

New York’s correctional landscape is shrinking, and its real estate footprint is shifting with it. As the State’s prison population has declined by more than 50 percent since its 1999 peak, more than twenty correctional facilities have closed over the past two decades, leaving behind hundreds of acres of publicly owned land and millions of square feet of specialized infrastructure. [2] In response, New York Governor Kathy Hochul convened the New York State Prison Redevelopment Commission (the “Commission”) in 2022 to “reimagine closed prisons across New York State for innovative redevelopment.” [3] The resulting 140-page report, Unlocking Opportunity, outlines a comprehensive strategy for converting correctional liabilities into economic assets. [4] A strategy that is now being put into action.

The Commission’s work frames prison reuse not merely as a criminal justice issue, but as a real estate and economic development challenge. [5] Closed facilities range from 33-acre campuses to 550-acre complexes, many with substantial building inventories, utility infrastructure, and transportation connections. [6] Some sites include nearly one million square feet of physical assets, including dormitories, administrative buildings, and industrial-scale mechanical systems. [7] Yet these assets are often located in rural markets with limited private demand and significant regulatory constraints. [8]

The Policy Architecture of Redevelopment

The Commission produced thirteen recommendations aimed at accelerating redevelopment. [9] Among the most significant are: (1) prioritizing Requests for Proposals (RFPs) for select sites; (2) launching a Prison Redevelopment Fund to provide capital grants; (3) creating a Municipal Technical Assistance Fund; (4) establishing structured community engagement processes; and (5) prioritizing housing and renewable energy uses. [10] Following the report, Governor Hochul publicly endorsed these recommendations and committed to advancing several immediately, including the release of RFPs for Downstate and Watertown Correctional Facilities. [11]

The Prison Redevelopment Fund represents a particularly important real estate intervention. By providing flexible capital for predevelopment and construction costs, the Fund attempts to bridge feasibility gaps that often deter private investment in specialized, adaptive reuse projects. [12] The Municipal Technical Assistance Fund similarly recognizes that local governments may lack the legal, engineering, and transactional capacity to reposition complex former correctional campuses on their own. [13] Notably, the State has already taken interim asset-preservation measures, including removing razor wire at certain sites and maintaining utilities at others to prevent rapid deterioration. [14]

Constitutional Constraints in the Adirondack Park

Redevelopment in the Adirondack Park presents a distinct legal challenge. [15] Several closed facilities — Camp Gabriels, Moriah Shock, and Mount McGregor — are located on Forest Preserve land protected by New York’s “forever wild” constitutional clause. [16] In January 2026, Governor Hochul proposed a constitutional amendment to remove these parcels (which account for three of the six closed prisons within the Forest Preserve) from the Forest Preserve to allow for “public or private sale for public benefit, which may include economic, environmental, or housing benefits.” [17]

The proposal requires the State to acquire at least 1,500 acres elsewhere in the Adirondack Park to offset the removal of the prison lands, effectively structuring a land swap embedded within the state budget. [18] Because constitutional amendments must pass two successive Legislatures and then receive voter approval, the timeline for Adirondack prison reuse is necessarily extended and uncertain. [19] This procedural reality illustrates just how significantly land-use law and constitutional environmental protections can shape redevelopment feasibility. Sometimes even more so than market conditions.

Housing as Adaptive Reuse Model

The Commission explicitly prioritized housing as a preferred reuse category, particularly in light of New York’s broader housing shortage. [20] Governor Hochul’s administration has similarly emphasized the broader redevelopment of state-owned properties — including former correctional facilities — to expand the affordable housing supply in light of this crisis. [21]

A recent example outside the state prison system illustrates this model in practice. In November 2025, Governor Hochul announced the completion of Golden Hill Apartments, a 164-unit affordable housing development built on the former Ulster County Jail site in Kingston. [22] The $87 million project transformed a vacant carceral property into a multi-generational, all-electric residential community with rooftop solar arrays and supportive housing units. [23] State financing for the project included tax credits, bond proceeds, capital subsidies, and Mid-Hudson Momentum Fund support. [24]

Golden Hill demonstrates that former correctional land can transition into productive residential use when layered financing and coordinated public policy align. However, county jails and state prisons differ significantly in scale, security infrastructure, and geographic context, meaning not every prison site redevelopment will replicate the Golden Hill process or outcome. [25]

Continued Closures and System Consolidation

The Governor’s redevelopment strategy unfolds alongside continued facility consolidation across the State. In November 2025, the Department of Corrections and Community Supervision (DOCCS) announced the closure of Bare Hill Correctional Facility and partial consolidation of Collins Correctional Facility, citing staffing shortages and operational efficiency. [26] DOCCS committed to maintaining the closed facility in a “state of ready,” including utilities and infrastructure upkeep — steps that will prevent deterioration of the existing infrastructure and make any future conversion of the site cheaper and more attainable. [27] These decisions underscore that prison closures are ongoing administrative concerns tied to population decline, fiscal pressures, and workforce constraints. As additional facilities close, the State’s inventory of surplus correctional real estate may expand, further testing the Commission’s framework.

Real Estate Implications and Open Questions

From a real estate perspective, the reuse of correctional facilities implicates several doctrinal and practical considerations:

First, valuation complexity arises because these facilities were initially financed through various public bond structures and may be subject to federal tax-exempt use restrictions. [28] Thus, dispositions must comply with Internal Revenue Service (IRS) requirements for assets financed with tax-exempt bonds. [29]

Second, zoning and entitlement challenges vary widely by location, particularly in rural municipalities with limited development infrastructure. [30] Some sites would require subdivision or easement restructuring before transfer. [31]

Third, infrastructure assets — including water treatment systems, sewage plants, and electrical substations — can either enhance redevelopment potential or create burdensome maintenance obligations. [32] In some cases, the prison utility systems even serve surrounding communities, further complicating disposition. [33]

Finally, market absorption risk remains uneven across regions. [34] While Downstate sites near transportation corridors may attract industrial or housing developers, remote North Country facilities may rely on renewable energy projects, tourism uses, or public-sector transfers. [35]

Adaptive Reuse at Scale

Governor Hochul’s prison reuse initiative reflects a broader shift in how states conceptualize correctional infrastructure — as adaptable real estate rather than fixed-purpose institutions. The Commission’s recommendations, combined with housing policy initiatives and constitutional land-swap proposals, signal a coordinated effort to convert underutilized carceral land into economic and community assets.

Whether these efforts ultimately succeed will depend on capital alignment, community engagement, constitutional navigation, and disciplined asset management. But one thing is for certain: in New York, the future of criminal justice reform is increasingly intertwined with land use law and real estate finance.

EASTON WARNER (Editor-in-Chief) is a 2L at Villanova University Charles Widger School of Law. In addition to being the Editor-in-Chief of the Real Estate Law Society Blog, Easton is a member of the Moot Court Board. Following law school, Easton plans to pursue a career in Litigation.

Footnotes

[1] Photo by Hédi Benyounes on Unsplash, https://unsplash.com/photos/stainless-steel-spiral-bulb-wire-G_gOhJeCpMg.

[2] See New York State Department of Corrections & Community Supervision, NYS DOCCS Announces Closure of Bare Hill Correctional Facility (Nov. 18, 2025), https://doccs.ny.gov/system/files/documents/2025/11/nys-doccs-announces-prison-closure_11.18.25.pdf; New York State, Governor Hochul Releases Prison Redevelopment Commission Recommendations (Dec. 22, 2022) https://www.governor.ny.gov/news/governor-hochul-releases-prison-redevelopment-commission-recommendations; New York State Prison Redevelopment Commission, Unlocking Opportunity: The Report of the New York State Prison Redevelopment Commission (2022), https://esd.ny.gov/sites/default/files/Prison-Redevelopment-Commission-Report-2022.pdf.  

[3] New York State, Governor Hochul Releases Prison Redevelopment Commission Recommendations (Dec. 22, 2022) https://www.governor.ny.gov/news/governor-hochul-releases-prison-redevelopment-commission-recommendations.

[4] New York State Prison Redevelopment Commission, Unlocking Opportunity: The Report of the New York State Prison Redevelopment Commission (2022), https://esd.ny.gov/sites/default/files/Prison-Redevelopment-Commission-Report-2022.pdf.

[5] Id.  

[6] Id. 

[7] Id. 

[8] Id. 

[9] Id. 

[10] Id. 

[11] New York State, Governor Hochul Releases Prison Redevelopment Commission Recommendations (Dec. 22, 2022) https://www.governor.ny.gov/news/governor-hochul-releases-prison-redevelopment-commission-recommendations.

[12] New York State Prison Redevelopment Commission, Unlocking Opportunity: The Report of the New York State Prison Redevelopment Commission (2022), https://esd.ny.gov/sites/default/files/Prison-Redevelopment-Commission-Report-2022.pdf.

[13] Id. 

[14] New York State, Governor Hochul Releases Prison Redevelopment Commission Recommendations (Dec. 22, 2022) https://www.governor.ny.gov/news/governor-hochul-releases-prison-redevelopment-commission-recommendations.

[15] New York State Prison Redevelopment Commission, Unlocking Opportunity: The Report of the New York State Prison Redevelopment Commission (2022), https://esd.ny.gov/sites/default/files/Prison-Redevelopment-Commission-Report-2022.pdf.

[16] Gwendolyn Craig, Hochul’s $260B Budget Includes Land Swap for 3 Closed Adirondack Prisons, Adirondack Explorer (Jan. 21, 2026), https://www.adirondackexplorer.org/community-news/government/hochul-proposes-state-budget-2027/; N.Y.S. Const., Art. 14, § 1.

[17] Gwendolyn Craig, Hochul’s $260B Budget Includes Land Swap for 3 Closed Adirondack Prisons, Adirondack Explorer (Jan. 21, 2026), https://www.adirondackexplorer.org/community-news/government/hochul-proposes-state-budget-2027/.

[18] Id. 

[19] Id. 

[20] New York State Prison Redevelopment Commission, Unlocking Opportunity: The Report of the New York State Prison Redevelopment Commission (2022), https://esd.ny.gov/sites/default/files/Prison-Redevelopment-Commission-Report-2022.pdf.

[21] New York State Prison Redevelopment Commission, Unlocking Opportunity: The Report of the New York State Prison Redevelopment Commission (2022), https://esd.ny.gov/sites/default/files/Prison-Redevelopment-Commission-Report-2022.pdf; New York State, Governor Hochul Releases Prison Redevelopment Commission Recommendations (Dec. 22, 2022) https://www.governor.ny.gov/news/governor-hochul-releases-prison-redevelopment-commission-recommendations.  

[22] Penrose, Bricks & Mortar, Golden Hill Apartments Transforms Vacant Former Ulster County Jail Site (Nov. 17, 2025), https://www.pennrose.com/news-views/news/2025/golden-hill-apartments-transforms-vacant-former-ulster-county-jail-site/.

[23] Id. 

[24] Id. 

[25] See New York State Prison Redevelopment Commission, Unlocking Opportunity: The Report of the New York State Prison Redevelopment Commission (2022), https://esd.ny.gov/sites/default/files/Prison-Redevelopment-Commission-Report-2022.pdf.

[26] New York State Department of Corrections & Community Supervision, NYS DOCCS Announces Closure of Bare Hill Correctional Facility (Nov. 18, 2025), https://doccs.ny.gov/system/files/documents/2025/11/nys-doccs-announces-prison-closure_11.18.25.pdf. 

[27] Id.

[28] New York State Prison Redevelopment Commission, Unlocking Opportunity: The Report of the New York State Prison Redevelopment Commission (2022), https://esd.ny.gov/sites/default/files/Prison-Redevelopment-Commission-Report-2022.pdf.

[29] Id.

[30] Id.

[31] Id.

[32] Id.

[33] Id.

[34] Id.

[35] Id.