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People Inc. Seeks to Develop Portion of Former DeGraff Hospital in North Tonawanda

Dec 02, 2025


People Inc. plans to purchase and redevelop the long-vacant inpatient bed tower of the former DeGraff Memorial Hospital in North Tonawanda. The proposal would transform this portion of the property into a vibrant, mixed-use facility with senior housing, an employee training center, and a day habilitation program for people with intellectual and developmental disabilities.

Vacant for more than eight years, the tower portion of the building at 445 Tremont St. would be renovated into between 65 and 80 apartments for income-eligible seniors aged 55 and older. Included in the total would be 18 apartments reserved for seniors experiencing housing instability and living with chronic medical conditions or physical disabilities.

The plan, which is contingent upon approval of funding and financing from various sources, was presented to the North Tonawanda Planning Commission on Monday, December 1. Overall project costs are still being finalized.

People Inc., a nonprofit human services agency, currently manages more than 30 apartment complexes across Western New York, providing affordable housing to over 1,300 residents. In a similar project in 2023, the agency successfully redeveloped the former Buffalo Children’s Hospital site into Folwell Senior Apartments, a 44-unit community for income-eligible seniors aged 62 and older.

“People Inc. is proud to meet the demand for affordable and supportive housing while making a meaningful investment in North Tonawanda and the region,” said Anne McCaffrey, president and CEO of People Inc. “This project reflects our mission to enhance lives and strengthen communities. With a proven track record of developing and managing senior housing, we are confident this redevelopment project will provide lasting benefits. The addition of a training center will further strengthen our workforce and expand essential services for people with intellectual and developmental disabilities.”

The purchase of the building from Kaleida Health is contingent on securing funding from multiple state and federal sources. The Kaleida Health-run DeGraff Medical Park Emergency Department and related support services (blood draw, imaging, pharmacy), DeGraff Rehabilitation and Skilled Nursing Facility and all outpatient healthcare clinics operating within the DeGraff Wellness Center will remain open.

If the project is moved forward, People Inc. plans to host a public meeting for area residents to provide more details.