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Councilors say city will back South Side Renaissance LIHTC submission as deadline nears
Summary
Councilors and city staff said the city has championed the South Side Renaissance housing proposal and sent letters of support ahead of a low-income housing tax credit application due the next day; the project would create about 75 units in partnership with Saint Nick's Alliance and depend on New York housing finance awards.
Councilors and city housing staff said the city is supporting the South Side Renaissance housing project and has sent letters championing the proposal to state housing agencies ahead of a low-income housing tax credit application due the next day. The project, presented to the council as “South Side Renaissance,” would create about 75 residential units in mixed-use buildings and is now partnered with Saint Nick's Alliance.
The project matters because it is intended to add affordable housing to a corridor slated for future bus rapid transit and to leverage state housing finance awards. City officials described the development team as experienced and said the bulk of construction financing is expected to come from low-income housing tax credits and other permanent lending sources.
City staff and commissioners said the city and mayor’s office have already submitted letters in support. Commissioner Matt O'Jay, commissioner of assessment, told the council, “Right now, we're we're wholly supportive of this.” A city staff member added, “The submissions are due tomorrow.”
Housing finance process and project finance were central to the discussion. Commissioners and staff said Low-Income Housing Tax Credits (LIHTC) typically must account for more than half of a project's capital stack; remaining capital can include private equity from the developer, permanent lenders and local funding the developer may request from the city. Officials said investor expectations and required market studies limit how many higher-rent units a development can include.
Councilors also discussed income restrictions: staff said all three projects discussed that day are income-restricted and that some units would be targeted up to about 80 percent of area median income depending on each project's market study and the financing underwriter’s requirements. Staff noted income-averaging arrangements may be used on some projects to achieve a broader range of unit incomes.
Councilors asked staff to share the formal applicant letters that developers must transmit to the mayor’s office after their application submissions; city staff agreed to do so after the applications were filed. No formal council vote on project approval was taken during the discussion; officials described the conversation as a status update and a reaffirmation of the city’s support for the application process.
Less-critical details discussed included developer track records and management experience; staff said Saint Nick's Alliance manages nearly 3,000 units in the tristate area and has experience on similar projects. Officials said they have communicated regularly with the state housing agencies and that mayoral and council letters were intended to make the city’s intent clear to reviewers.
The council’s discussion closed without a formal motion; staff and commissioners said they would monitor the application, share the letters transmitted by applicants to the mayor’s office, and continue coordination with the state housing agencies.
