Ithaca Urban Renewal Agency approves affordable housing project for 60% AMI households

In a recent study session held by the Ithaca Common Council, discussions centered on the development of an affordable housing project, highlighting the city's ongoing efforts to address housing shortages. The meeting, which took place on April 16, 2025, provided key insights into the eligibility criteria for potential residents and the financial implications of the project.

The proposed development will consist of 56 units, with 50 of these designated for households earning up to 60% of the area median income (AMI). This translates to an approximate income limit of $46,000 for a one-person household and $53,000 for a two-person household, although these figures may adjust slightly based on the latest AMI data released just prior to the meeting. The remaining units will be available to households with slightly higher incomes, still below the AMI threshold.

A significant point of discussion was the tax status of the property once the affordable housing units are built. Currently owned by the city, the property will transition to a Payment in Lieu of Taxes (PILOT) agreement, which will result in reduced tax payments to the city. This arrangement is designed to balance the financial needs of the city while supporting affordable housing initiatives.

Council members also raised concerns about the broader housing market, particularly the lack of options for middle-income residents. The discussion touched on the need for more housing that caters to individuals earning between $40,000 and $70,000, a demographic often overlooked in current housing strategies. In response, it was noted that New York State has introduced new programs aimed at supporting affordable homeownership and rental projects for this income bracket, indicating a potential shift towards addressing these gaps.

The meeting concluded with a unanimous vote to move the housing project forward, reflecting a collective commitment to enhancing affordable housing options in Ithaca. As the city continues to navigate the complexities of housing development, the discussions from this session underscore the importance of balancing affordability with financial sustainability for the community. Future steps will likely involve further negotiations with childcare service providers and ongoing assessments of housing needs across different income levels.