CARMEL – Residents on both sides spoke passionately at a Carmel Planning Board public hearing last year about a proposal to locate a stabilization center in Carmel. Ultimately, the seven-member board rejected the plan.
The United States is facing a behavioral health crisis, and Putnam County is not immune.
People USA explained that a crisis stabilization center would allow those in mental hygiene crisis, be it substance abuse or mental health, to voluntarily visit the facility staffed by licensed clinicians, nurses, and peer specialists in a less traumatic experience than a hospital emergency room.
After two proposed sites fell through in 2023, a new location was selected at 1071 Stoneleigh Avenue in Carmel. The center would provide whole-health assessments, motivational interviewing, and de-escalation services.
Following the unanimous rejection by the Carmel Planning Board last January, People USA sued the township filing papers in U.S. District Court for the Southern District of New York.
The Carmel Town Board has now agreed to settle the litigation for $100,000, an amount covered by the municipality’s insurance carrier.
The settlement also helps People USA find a new site for the center outside the towns of Carmel and Southeast.
Carmel Supervisor Michael Cazzari said he understood the concerns of nearby residents who vehemently opposed the center in their neighborhood since the hamlet of Carmel is already home to a methadone clinic and Arms Acres, an alcohol and drug treatment center.



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