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Council approves transfer of 205 West State Street to IURA for INHS housing-and-childcare project

2091814 · January 8, 2025
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Summary

The Ithaca Common Council declared lead agency, found no significant environmental impact, and voted to transfer 205 West State Street to the Ithaca Urban Renewal Agency for a proposed Ithaca Neighborhood Housing Services (INHS) project that would replace a parking lot and vacant building with a mixed project including senior housing and daycare.

The Ithaca Common Council voted to transfer 205 West State Street to the Ithaca Urban Renewal Agency (IURA) to allow Ithaca Neighborhood Housing Services (INHS) to develop a mixed housing and childcare project.

What the council approved: The council first declared itself lead agency for state environmental review for the proposed transfer and project, then voted that the transfer was not an action of environmental significance under the State Environmental Quality Review Act (SEQRA), and finally approved the transfer of the property to IURA. Council members voted on the transfer item; the motion to approve the property transfer carried unanimously.

Project details provided to the council: Nels (IURA) and Lynn (project lead with INHS) told council the project would include both the adjacent parking lot and a vacant doctor’s office. Lynn said the plan is “senior housing above, daycare” with a total of about 56 units and management by INHS. Lynn described the likely income-mix as the majority of units targeting 50% and 60% of area median income (AMI), with some units at 90% AMI and the possibility of units up to 110% AMI depending on final budget. Lynn gave example AMI figures: “for a single person household, currently, 60% of area median income is $46,320; 50% is $38,600; for a 2 person household, it would be $52,920 for 60% and $44,100 for 50%.”

Eligibility and screening: Lynn said the project follows standard state funding rules for affordable housing, including individual reviews of criminal records required by funding sources; she noted only convictions for methamphetamine production in the home or lifetime registrant sex‑offender statuses are automatically excluded. INHS also performs credit reviews but said denials based solely on credit score are not automatic; large outstanding landlord debt is the most common credit‑related barrier.

Votes and motions: The council took three sequential actions related to this item—lead agency declaration, SEQRA determination and property transfer. The lead agency and SEQRA votes were recorded with the project sponsor and staff present; the final transfer vote carried 10–0.

Why it matters: The transfer moves a city‑owned parking lot and vacant building toward a project that would add new affordable housing units and a childcare space in downtown Ithaca, a central area under pressure from high housing costs. Council members and public speakers discussed the project in the context of broader housing goals and concerns about management of other recent developments.

What remains: Project budgets and final unit mix could change as INHS continues design and funding work. Council discussion and staff responses indicated additional details—such as final income targeting and programmatic set‑asides—remain to be finalized in later project approvals.