James Roosevelt II, son of Isaac II, inherited Mount Hope and resided there with his first wife, Rebecca Howland. In 1865 the Poughkeepsie property tragically burned while the couple was touring in Europe. They lost virtually all of their papers and belongings. James chose to sell the property to the State of New York for the construction of the Hudson River State Hospital, a psychiatric center. After the new hospital facility was built on the Mount Hope Grounds, James served on the hospital’s Board of directors.
A bell that was originally from the Mount Hope property was eventually placed in front of The Cheney Building on the Hudson River Grounds, and is now located in front of the HRSH Museum.