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Council moves to authorize sale of 205 West MLK to INHS for affordable housing
Summary
Council advanced a resolution authorizing the Ithaca Urban Renewal Agency to sell 205 West Martin Luther King Jr. Street to Ithaca Neighborhood Housing Services for construction of affordable housing; developers told council most units will be restricted at up to 60% of area median income.
The Common Council on April 16 moved to authorize sale of city-controlled property at 205 West Martin Luther King Jr. Street to Ithaca Neighborhood Housing Services (INHS) to support development of affordable housing.
Council motion language said the Ithaca Urban Renewal Agency (IURA) is authorized to sell the parcel to INHS for the construction of affordable housing. The resolution was moved by Alderperson Nguyen and seconded by Alderperson Hank Sharp and was carried unanimously when the council voted to advance it to the regular voting agenda and to consent, as recorded in the meeting.
In response to council questions, representatives from INHS said 50 of the 56 units planned for the project will be affordable to households earning up to 60% of area median income (AMI); the remaining units will be at modestly higher income tiers but still below market. Staff explained that translating AMI percentages into dollar cutoffs depends on household size; counsel and INHS offered approximate dollar equivalents for 2025, noting AMIs had just been updated.
The council also discussed the property’s tax status. Staff said the parcel is city-owned and the proposed development would be subject to a payment-in-lieu-of-taxes (PILOT) or pilot agreement that reduces annual tax payments compared with full market taxation; the project would move from no payment (while city-owned) to a reduced payment formula intended to reflect the project’s affordable status rather than full market tax burdens.
Councilors asked whether a childcare provider had been identified for the project. Staff said federal funding uncertainty meant a provider had not yet been finalized and INHS was negotiating with two local providers.
Finance details offered in the meeting included INHS’s agreement to pay fair market value for the parcel at $370,000. Council members asked staff to return with any further development agreements or tax-exemption specifics as those contracts are negotiated.
The council moved the parcel sale forward and consolidated the item with the consent agenda and the regular voting meeting; the motion to advance carried unanimously.
