Legislature approves three municipal grants from housing infrastructure program, seeks contingent funding to cover shortfall

The Housing and Economic Development Committee unanimously approved three grant awards from the county’s Housing Affordability and Supportive Infrastructure Grant program on July 16, backing planning work in the City of Ithaca, the Town of Danby and the Town of Dryden and asking the legislature to consider a $9,900 contingent transfer so all three awards can be funded this year.

Why it matters: County planning staff and applicants argued the HESIG awards leverage small county grants to win much larger state and federal infrastructure funding and to advance projects that can create housing capacity. Committee members said the program has often been underspent since its 2019 start and recommended treating it as an ongoing, active pipeline rather than an accumulating balance.

The three awards approved by the committee are: - City of Ithaca — $10,000 to support hiring a consultant to develop preapproved accessory dwelling unit (ADU) designs, which the city recently authorized in local law. The county grant would supplement city funds already set aside for the work. (Moved by Veronica, seconded by Anne; passed unanimously.) - Town of Danby — $10,000 to pay for consultant services (about 60% of a professional fee) to create the mapping, planning and application materials needed to pursue Water Infrastructure Improvement Act funding for downtown hamlet sewer and water infrastructure. (Moved by Anne, seconded by Veronica; passed unanimously.) - Town of Dryden — $9,900 to fund a feasibility study for the NYSEG/Route 13 corridor — a roughly 100‑acre node the town hopes to coordinate for mixed‑use and housing development; total project cost $11,000 and the request was capped at 90% of that budget. (Moved by Deborah, seconded by Veronica; passed unanimously.)

Funding and process: Committee members noted $20,000 was budgeted for HESIG in 2025 and that the three requests exceed that by $9,900. County Administrator Corso told the panel the county’s contingent account could supply that amount if the legislature approves. Committee members discussed timing and committee-of-the-whole and Budget and Capital Planning (BCP) Committee schedules and agreed to hold the three HESIG resolutions to be considered together at the legislature’s second August meeting so the contingent transfer could be handled in BCP rather than advancing only two awards and leaving the third dependent on later action.

Public comment and program history: Former legislator Martha Robertson testified that the HESIG program began in 2019 and that the legislature allocated roughly $110,000 to it since inception but only about $40,000 has been disbursed so far; she urged the committee to fund the three current applications and noted Dryden’s proposal builds on prior county‑funded infrastructure study work. Charles Geisler of Dryden asked whether the county had a contingency plan if additional applications arrive before the program deadline; county staff said the application deadline is September 23 and additional applications would be considered as received.

Implementation notes and next steps: Staff said Danby’s study will support an application for the Water Infrastructure Improvement Act and that Danby presently lacks sewer infrastructure for its hamlet areas. Committee members asked staff to include a short history of HESIG budget and usage in the materials that go to BCP and the full legislature. The committee instructed the clerk to place all three resolutions (and the contingent transfer request) on the legislature agenda for the second meeting in August so they could be considered together.

Outlook: Committee members signaled interest in turning the program into a more actively managed fund that does not accumulate unspent balance but is available to respond quickly to municipal planning needs. Staff said additional applicants will be accepted through the September 23 deadline and brought forward for committee consideration.