Governor Hochul Announces Start of Construction on $225 Million ...
Governor Kathy Hochul today announced the start of construction at North Aud Block, a $225 million mixed-use development in Buffalo’s Canalside. This transformative project will convert a vacant parcel into 251 affordable and market-rate apartments, and will include 18,000 square feet of commercial space, 20,000 square feet of open, community space and 137 parking spaces. The project is built on the site of the former Buffalo Memorial Auditorium, also known as the Aud, which closed in 1996. It is part of a comprehensive plan to redevelop the entire parcel of land where the Aud once stood and follows last year’s opening of a visitor center there. Under Governor Hochul’s leadership, New York State Homes and Community Renewal (HCR) has created or preserved more than 11,600 homes in Erie County, including more than 8,300 in the city of Buffalo. North Aud Block continues this effort and is part of Governor Hochul’s $25 billion five-year Housing Plan, which is on track to create or preserve 100,000 affordable homes statewide.
“For too long, the North Aud Block has sat in the shadow of Canalside as a vacant reminder of the past, but today, we are rewriting its future as a vibrant destination on Buffalo’s historic waterfront,” Governor Hochul said. “This transformation represents exactly what our strategy was designed to achieve: turning underutilized land into hundreds of new homes and enhancing an important economic corridor. By honoring Buffalo’s rich history while investing in the future, we are ensuring Canalside remains a premier, welcoming destination for generations to come.”
North Aud Block, developed by Pennrose, will appeal to families of varying sizes and income levels. It will feature 187 affordable units available to households earning up to 80 percent of the Area Median Income. The remainder of the apartments will be market-rate. There will be a mix of studios, one-, two- and three-bedroom units.
The project’s design will retain the site’s connection to the former auditorium and will reflect portions of the area’s original 19th-century street grid. The facades will incorporate exposed brick, terracotta and metal paneling. The ground floor will consist of stone materials reminiscent of other historic downtown buildings nearby.
The buildings will be situated on the site to create a 20,000-square-foot public plaza along the canal, including seating and landscape features that will also serve as wind barriers and heat preservation. The open space will help connect the project to the surrounding Canalside neighborhood and KeyBank Center, home to the Buffalo Sabres and Buffalo Bandits.
While the project celebrates the historic Auditorium, it will incorporate 21st-century amenities. The development will be all-electric, with heat pumps, energy recovery ventilation, ENERGY STAR appliances, water-conserving plumbing and electric vehicle charging. It will have fully accessible and adaptable apartments. There will be 13 units to accommodate residents with mobility disabilities and six units to accommodate residents with sensory disabilities.
The Erie Canal Harbor Development Corporation, a subsidiary of Empire State Development (ESD), previously owned the North Aud Block site. The Aud was demolished by the state in 2009.
This project is part of the State’s plan to redevelop the entire former Buffalo Memorial Auditorium parcel of land. In November 2025, Governor Hochul announced the opening of The Chandlery, a visitor center and retail store. The 14,000-square-foot, four-story masonry building evokes 19th century structures along the Erie Canal. A public art installation, Destination, also debuted then in commemoration of the Erie Canal bicentennial.
North Aud Block is supported by HCR’s Federal Low-Income Housing Tax Credit program, which is expected to generate more than $30 million in equity, its State Low-Income Housing Tax Credit program, which is expected to generate more than $35 million in equity, and $65 million in subsidy. The project is also supported by Empire State Development with $12 million from the NY-RUSH program, $10 million from the NY Works Economic Development Fund, and $2.5 million from the Regional Council Capital Fund Program. The site is participating in the New York State Department of Environmental Conservation’s successful Brownfield Cleanup Program and, when completed, would be eligible for approximately $20 million in tax credits administered by the New York State Department of Taxation and Finance.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “This $225 million transformational development will help revitalize the Buffalo Canalside neighborhood and celebrate the Aud’s history while also providing housing for individuals and families of all incomes — from first responders, to nurses, to childcare workers, to bus drivers and more. We are thankful to Governor Hochul’s bold vision and are grateful to the development team for their commitment.”
Empire State Development President, CEO & Commissioner Hope Knight said, “Today’s groundbreaking at the North Aud Block is a testament to the power of strategic investment to maximize public benefits. This mixed-use development will not only drive foot traffic to Canalside, but it will also inject needed, diverse housing options directly into downtown Buffalo. Empire State Development is proud to support a project that supports Governor Hochul’s housing goals and breathes new life into the Queen City.”
State Senator April N.M. Baskin said, "The start of construction at North Aud Block marks another exciting chapter in downtown Buffalo’s continued revitalization into a place where people can live, work, and play. By bringing hundreds of new homes, commercial space and public gathering spaces to Canalside, this project will strengthen our local economy and expand housing opportunities for Buffalo families. I thank Governor Hochul for continuing to invest in affordable housing and for helping build on the momentum transforming Buffalo’s waterfront and neighborhoods."
Assemblymember Crystal Peoples-Stokes said, “Governor Hochul’s Let Them Build agenda is bringing affordable housing and mixed-use space to Buffalo’s Canalside neighborhood. The historical significance of developing the North Aud Block on the same parcel where the Buffalo Memorial Auditorium once stood shouldn’t be ignored. Connecting different sections of our downtown area will help to create a more vibrant and thriving downtown Buffalo. Thank you, Governor Hochul, ESD, HCR and our other partners for getting this transformational development off the ground.”
Erie Canal Harbor Development Corporation Chairperson Joan Kesner said, “From the demolition of the Aud in 2009 to years of planning and community input, ECHDC has been dedicated to creating a vibrant, mixed-use neighborhood that seamlessly bridges Buffalo’s historic 19th-century grid with modern housing and amenities. I want to thank Governor Hochul for her unwavering commitment to Western New York and for helping turn this long-awaited vision into reality.”
Pennrose Regional Vice President Dylan Salmons said, “Today marks a significant milestone for Canalside in bringing a transformative mixed-income, mixed-use community to a long-underutilized site. North Aud will serve a broad range of incomes, creating a vibrant community that serves Buffalo’s workforce — teachers, nurses, first responders, young professionals — alongside market-rate residents. We are proud to contribute to Governor Hochul’s ambitious Housing Plan, ensuring New York is affordable and livable for all.”
Governor Hochul’s Housing Agenda
Governor Hochul is dedicated to addressing New York’s housing crisis and making the State more affordable and livable for all New Yorkers. Since FY23, the Governor has worked to increase housing supply to make housing more affordable by launching a $25 billion five-year comprehensive Housing Plan, enacted the most significant housing deal in decades and implemented new protections for renters and homeowners. Under Governor Hochul’s leadership, HCR has created new programs that jumpstart development of affordable and mixed-income homes — for both renters and homebuyers. These include the Pro-Housing Community Program, which allows certified localities exclusive access to up to $750 million in discretionary State funding. More than 420 communities throughout the state have been certified Pro-Housing, including the City of Buffalo.
Governor Hochul’s “Let Them Build” agenda will speed up housing and infrastructure development while lowering costs through a series of landmark reforms. Common-sense changes to New York’s Environmental Quality Review Act (SEQRA) in the FY 2027 Enacted Budget as well as executive actions will expedite critical categories of projects that have been consistently found to not have significant environmental impacts, but for too long have been caught up in red tape and subject to lengthy delays.
The enacted FY27 Budget completes the Governor’s current five-year Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations plus the electrification of an additional 50,000 homes. More than 81,000 affordable homes have been created or preserved to date. The Budget also invests $250 million in capital funding to accelerate the construction of thousands of new affordable homes. The enacted FY27 budget also further reinforces critical protections for tenants and homeowners.
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