Shovels are finally set to hit the dirt at one of downtown DeLand’s most talked-about empty lots. Today, DeLand and Volusia County leaders will break ground on the New York Avenue Apartments at 225 W. New York Ave, an affordable housing project that will create 84 income-eligible homes and reserve 13 units for people transitioning out of the Neighborhood Center of West Volusia.
Groundbreaking and partners
The ceremonial groundbreaking is scheduled for 1 p.m. Tuesday, with city and county officials joining the project’s developer, Blue Sky Communities, county staff said. Officials say the development is part of a broader effort to replace housing stock lost or damaged in recent storms. “One of the strategies was to add new housing in order to replenish what was lost,” said Corry Brown, operations manager for Volusia County Community Services, according to ClickOrlando.
Funding and who will run it
Volusia County backed the project with a mix of federal recovery and local gap funds, and county documents show staff recommended about $2.79 million in CDBG-DR gap funding for Blue Sky’s New York Avenue Apartments, according to Blue Sky Communities. Blue Sky Communities will develop and operate the site, while the county’s Transform386 initiative and programs such as HOME, HOME-ARP and SHIP helped close remaining financing gaps, as outlined in Transform386 materials.
From the Putnam to new homes
The Putnam Hotel, built in the 1920s and long a familiar downtown landmark, sat vacant for years before being demolished in 2023 to clear the lot for redevelopment. City records show the demolition was permitted in early 2023, and project renderings call for the new building to incorporate architectural details from the former hotel, according to City of DeLand public notices.
Design, parking and downtown debate
Plans for the five-story, 84-unit building ultimately won city approvals, but not without some back-and-forth over height, building materials, and how to satisfy downtown parking rules. City commissioners and planning staff worked out an off-site parking agreement to provide additional spaces and added conditions meant to protect downtown commerce, a compromise that cleared a key regulatory hurdle for the project. The July 2025 commission action and the parking debate were detailed in local meeting coverage at Citizen Portal.
What comes next
Once the ceremonial photos are taken, the real work will shift to site mobilization, final permitting, and bringing construction crews into downtown DeLand. County documents note that 13 units will be set aside for people transitioning from the Neighborhood Center of West Volusia, with the center coordinating on-site supportive services for those residents. Transform386 materials describe that partnership and present the New York Avenue Apartments as part of the area’s ongoing recovery efforts.
