Forest Hills Affordable Housing Breaks Ground at Former Parkway Hospital

Web Desk

After sitting empty for more than 15 years, the old Parkway Hospital in Forest Hills is finally getting a new life — and it’s not another luxury condo. Construction is underway on The Perennial, a $150 million project that will transform the shuttered medical facility into 145 affordable apartments for seniors and families.

Developers Foxy Development and Selfhelp Realty Group broke ground this week, calling the effort “one of New York’s most complex public-private projects in recent history.” It’s also the neighborhood’s first deeply affordable senior housing project.

From Parkway Hospital to Affordable Homes

Parkway Hospital has been vacant since 2008, its hulking structure a reminder of what once was.

In 2020, Foxy Development stepped in after the city rezoned the site from low-density R1 to higher-density R7, with a catch: 25% of the apartments had to remain affordable — and specifically for seniors.

By 2022, a Queens-based developer donated the hospital building but kept the parking lot for a market-rate project next door. That deal made financing possible, allowing The Perennial to move forward.

“We’ve spent the last five years working toward today,” said Jeff Fox, principal at Foxy Development. “The complexity of the funding sources and the nature of the project itself made this a very long and challenging process.”

A Community-Centered Vision

Selfhelp, a nonprofit with deep roots in Forest Hills, joined the project in 2024. Known for serving Holocaust survivors and older adults, the group will offer on-site services ranging from case management to health programs. Some new residents will even be relocating from homeless shelters.

Meanwhile, the Forest Hills Jewish Center (FHJC), a neighborhood institution since 1948, will move into a new 34,000-square-foot space inside the building. The original structure had been rumored for sale for years.

Funding, Perks, and Design Challenges

To keep rents affordable, the city’s Department of Housing Preservation and Development (HPD) is covering capital costs and subsidies, ensuring seniors never pay more than 30% of their income.

A 40-year property tax exemption and state sales tax break will also ease construction costs.

Architects and engineers faced a unique puzzle: how to retrofit a hospital into housing. That meant removing seven columns and replacing them with mega beams to make way for a soaring sanctuary space.

“The building will require some unusual engineering solutions,” said CityScape principal Hadi Djohan.

What Residents Can Expect

The Perennial won’t just be affordable — it will be modern and community-focused. Plans include:

Amenities: laundry, library, computer room, indoor/outdoor lounges, and a rooftop terrace.
Accessibility: roll-in showers, grab bars, and plenty of seating for seniors.
Community spaces: a children’s playroom, pantry, synagogue sanctuary, and a mural-covered south facade.
Green touches: a vegetated lobby wall and energy-efficient windows.

“We’ve been able to create a building that will meet the needs of our residents while supporting independence and reducing isolation,” said Susan H. Wright of Selfhelp.

Looking Ahead

If all goes to plan, construction will wrap up by the end of 2027. What was once an abandoned hospital will soon become a place where generations of New Yorkers can live, gather, and grow old — in dignity and at a price they can afford.

Author Profile

Saleem Mubarak: Saleem Mubarak is a journalist and real estate writer who covers Houston’s evolving property market with a sharp eye for local trends and investor dynamics. He focuses on how shifting prices, interest rates, and migration patterns shape the city’s real estate future.

He has interviewed leading real estate professionals to bring readers first-hand insights into Houston’s changing market—from rising investor activity to the influence of social media on property buying.