Ithaca hearing reviews anticipated 2025 HUD entitlement funds; nonprofits pitch housing, repairs and job training

The Ithaca Urban Renewal Agency held a public hearing on the 2025 HUD entitlement consolidated planning process and heard presentations from local nonprofits proposing projects that would use the agency’s anticipated Community Development Block Grant (CDBG) and HOME allocations.

IURA staff said the agency is estimating about $796,000 in CDBG funding and about $244,000 in HOME funds for 2025; those figures are preliminary and subject to HUD’s final budget and formula. Seth, IURA staff, told attendees that the agency is proceeding with its normal public hearing steps while awaiting final federal amounts. He also said that requests for funding this year substantially exceed the anticipated entitlement amounts.

The hearing brought detailed proposals from housing developers and service providers. Victoria, a developer with Neighborhood Housing Services (INHS), presented a plan to redevelop the municipal parking and an existing family medical building at West State and South Geneva streets as a five‑story, all‑electric mixed‑income senior rental building with 56 one‑bedroom units and a childcare space on the first floor. "The majority of the units ... would be for households earning up to 60% of area median income," Victoria said, and she added that INHS would accept Housing Choice Vouchers. INHS staff described a total project budget of about $25 million, noted that Low Income Housing Tax Credits and New York State Homes and Community Renewal are expected to be major funding sources, and said application to the tax‑credit round is anticipated in fall 2025 with construction targeted to start in mid‑2026 if awarded.

Michelle Nolan, deputy director of the Learning Lab, described a request of $95,340 to fund tenant‑based rental assistance for up to five scattered‑site apartments serving homeless youth ages 21–24 for 12 months. "We're asking for that again because there is a gap in transitional living units for homeless youth," Nolan said, noting that local coordinated entry currently lists 59 homeless youth and that 57% of them are ages 21–24.

Shannon McCarrick, executive director of Habitat for Humanity of Tompkins and Cortland counties, described a request to support construction of a four‑bedroom modular home at 610 West Court and explained Habitat’s pricing and Community Housing Trust model. "We cap the sales price of our homes at 30% of the buyer's monthly household income," McCarrick said, adding that higher mortgage interest rates and rising construction costs have increased Habitat’s subsidy need; she said the organization requested $95,000 for the unit in its application materials.

Delia Yarrow, director of homeownership at INHS, reviewed the agency’s long‑running minor‑repair program, which she said supports many low‑income homeowners — particularly seniors and people with disabilities — and asked for funding to continue that work and to expand radon testing. She said federal funding for the minor‑repair program comes primarily through the county Office for the Aging and is roughly $50,000 per year, and that INHS is pursuing state and private funding to supplement local support.

Leslie, Samaritan Center coordinator for Catholic Charities, summarized a HOME‑funded security‑deposit assistance program that her agency has operated for more than 25 years. Catholic Charities reported serving 89 households in the most recent full year and an average deposit of about $994; the program provides one‑time grants for first month rent and security deposit for households at or below 60% of area median income and requires participating landlords to sign program agreements and provide leases.

Other presenters included Harry Smith of Blackingham Universal, who described site control and an intent to rehabilitate 614 West State Street for mixed uses (retail frontage, daycare and additional housing), and representatives from workforce and reuse programs: Bethany Fracy and Doreen Gohralli of Historic Ithaca described the Work Preserve job‑training program; Robin Elliott, Lauren Sawyer and Abby Ball of Finger Lakes Reuse described the RESET training program and said there are 32 people on their wait list; and Lonnie Jenkins described the Hospitality Employment and Training Program’s cohort model and its focus on placing trainees into part‑time and full‑time employment.

Kayla and Shavon from the Southside Community Center presented a proposal to establish a resiliency hub at the center that would include kitchen renovation, emergency supplies, solar panels, water purification and upgraded electrical capacity. They said the gym could accommodate about 150 people sleeping now and that post‑renovation the facility might hold as many as 500 people in an emergency. They also said the city has allocated $200,000 in its 2023 budget for facility upgrades and that the group is pursuing additional grants, including a requested $250,000 from a county representative’s discretionary fund and smaller awards from Cornell and the Park Foundation for planning and owner’s‑representative services.

IURA board members asked applicants about funding contingencies if federal HUD or other funding streams were reduced; multiple presenters said their programs are sensitive to federal cuts and described contingency strategies (scaling units, seeking private or state funds, or reducing the number of households served). Several presenters also discussed program details such as rent‑increase caps under New York Homes and Community Renewal (HCR) rules, acceptance of Housing Choice Vouchers, timelines for tax‑credit applications and construction, and supportive‑services arrangements for housing programs.

The public‑hearing period concluded with the board formally opening and later adjourning the hearing; IURA members recessed the meeting and set the public hearing to reconvene at 9 a.m. in March for further consideration of allocations and final action after HUD announces final entitlement amounts.

What’s next: HUD will publish final formulas and the IURA will confirm exact CDBG and HOME figures; the agency will then consider funding awards and contracts at a future meeting.