Syracuse officials discuss tax-exemption support for four affordable-housing proposals

Syracuse City leaders discussed tax-exemption arrangements and financing for multiple affordable-housing proposals at a recent meeting, including South Side Renaissance (a roughly 75-unit project), a 51-unit building at 680 South Avenue, La Liga scattered-site applications, and a 138-unit redevelopment of the Johnson Vocational Center at 200 Park Avenue.

The discussion matters because each project seeks state housing funding or tax relief and would affect neighborhoods with long-suppressed property values on the city’s South Side and near downtown. City staff and councilors described financing structures that rely on Low-Income Housing Tax Credits, private equity, permanent lending and, in some cases, local tax-exemption or abatement processes to make the developments economically viable.

Matt O'Jay, Commissioner of Assessment, described the South Side Renaissance submission as a mixed-use proposal on the 1500–1600 blocks of South Avenue that would include roughly 75 residential units and ground-floor commercial space. He said Saint Nick's Alliance — a development partner brought in after earlier submissions — strengthened the application and that the project team expects to seek Low-Income Housing Tax Credits (LIHTC) from New York State’s Homes and Community Renewal (HCR) or the state housing finance agency. O'Jay said those credit applications are due “tomorrow” and that the city has submitted supportive letters from the mayor and council to HCR on the project’s behalf.

Commissioner Collins and other members described South Side Renaissance as aligned with city priorities — transit access and grocery proximity — and said the developer has experience managing large affordable portfolios. O'Jay said LIHTC will provide the majority of capital (more than 50 percent), supplemented by developer equity and other lending; he also said the city expects the developer to apply to city funding programs.

On 680 South Avenue, staff described a 51-unit proposal across from the Price Right supermarket. The presenter said the site is in a floodplain and will require extra work and cost to build, but that the proposal is designed to complement a planned bus rapid transit corridor and would be built to high performance standards (presenter said the design aims for passive-house standards). The city noted that floodplain development raises financing complexity and increases the need for public support to achieve the desired mix of affordability and amenities.

Councilors and staff discussed La Liga’s scattered-site applications and said multiple applicants will submit competing proposals to the state housing finance agency. City staff warned that scoring at the state level can depend on developers’ assumed award packages and other expected funding; projects that cannot show stable, conservative financing risk being passed over until the next cycle.

The council also discussed the former Johnson Vocational Center at 200 Park Avenue, where an RFP process produced a preferred proposal for a 65-year ground lease and a mixed-income project with about 138 units above a podium with parking and commercial space. City staff said they now want an independent appraisal to validate the city's valuation assumptions; the proposed ground-lease consideration cited in the meeting was about $1,025,000. Staff and councilors said the developer teams are working on design and financing and that applications to the city's SITA process for abatements and a pilot structure will follow when financing is finalized.

City staff described the S And K building sale process as authorized by local law in late 2023 and said the city remains the owner until the developer closes; once the buyer accepts the building and meets financing requirements, the property will move back on tax rolls and later enter any pilot agreement tied to construction and abatement. Councilors asked for updates on pilot-timing and construction triggers; staff said those details will be resolved through the SITA/pilot review and developer financing milestones.

Councilors and staff emphasized that each project is income-restricted housing (projects described as using income-averaging and caps generally up to about 80 percent of area median income for portions of units) and that annual income certification will be required for residents. City staff cautioned that community space and ground-floor commercial areas are costly to build and maintain under the revenue limits imposed on subsidized affordable housing.

No formal vote or new ordinance was recorded during the discussion. Staff said legislation to move some items forward (for example appraisal authorization or property conveyance steps) will be requested in an upcoming quarter and that the council will see specific applications to SITA or other formal processes as developers finalize financing.

City officials closed the item by asking staff to share application letters and to notify the council when applicants have filed with state agencies and SITA so members can track the projects’ progress.