Board approves modification to 1991 use variance allowing conversion of vacant historic house at 281 State Street into seven apartments

The Albany City Board of Zoning Appeals on Dec. 3 approved a modification to a 1991 use variance that will let the owner convert a vacant former guest house at 281 State Street into seven rental apartments.

The applicant told the board the building — previously run as a transient guest house and vacant for years — will be renovated with four upper-level apartments, two on the middle floors and one garden-level unit, for a total of seven units. He said the project includes eight parking spaces (one reserved for trash), newly installed three-phase electrical service and EV chargers, and water-system upgrades. "We're proposing to turn it into a 7‑unit apartment building," the applicant said during his presentation.

Neighbors and preservation advocates spoke in favor. "Allowing this variance will improve the current situation and ensure the successful future of this grand, historic, and beautiful house, which has been empty for too long," said Michelle Brock, a 20‑year resident and member of local historic and neighborhood organizations. Immediate neighbor David Hinchin said the building had been broken into and that occupancy would reduce safety risks.

City planning staff explained the request is a modification of a conditional use variance originally granted in 1991 for operation as a bed-and-breakfast/guest house. Staff said the earlier variance became permanent after the property demonstrated it was not a neighborhood nuisance. Under current zoning (RT district), multifamily residences are not permitted except by variance; staff stated the building does not qualify for the narrow exceptions that allow converted multiunit residences without a variance.

The applicant said converting a 12‑bed transient operation to seven permanent apartments reduces turnover even as it increases dwelling units. "Maybe you're increasing the density, but I also have parking, so you're not increasing — it's a different kind of intensity," he said, arguing the project would produce higher‑quality, longer‑term housing than the prior transient use.

Asked whether any units would be offered at below‑market rents, the applicant said the project "numbers don't work" for adding an affordable set‑aside. Staff and the applicant also noted the developer had conducted outreach to neighborhood groups and the Center Square Association.

After public comment and board questions, a member moved and the board voted to approve the modification. During the roll call the board recorded affirmative votes from Celeste, Marta, Amanda, Serena and Adriana. The board said a formal written decision will follow next week.

The board’s approval modifies the 1991 use variance to allow permanent residential apartments in place of the previously permitted guest‑house use; the applicant will proceed with building permits and renovation work.

What’s next: The board said the applicant will receive a formal decision in writing and proceed through permitting and building inspection processes.