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Council approves $1.9M subsidy for 95‑unit senior cooperative
Summary
Rochester approved a $1.9 million contribution from the Homeownership Creation Program to support the American Cooperative of Rochester, a 95‑unit limited‑equity senior cooperative that secured a HUD Section 213 loan; developer representatives said marketing is underway and the city contribution would lower share prices.
The council voted to contribute $1.9 million from the Homeownership Creation Fund to the American Cooperative of Rochester, a 95‑unit, age‑restricted limited‑equity cooperative in the Danielson Farms general development plan. Community Development staff said the homes are priced between about $188,500 and $439,000 and meet program eligibility; the requested subsidy equates to roughly $20,000 per unit as a ceiling to offset city‑related development costs.
Developer Mick Conlon of Gramercy Development said marketing targets Rochester residents and that about 150 people are on the interest list; he and staff said the HUD Section 213 loan used for the project imposes resale and equity limits (developer cited a 4.5% annual appreciation cap) that align with the city’s resale restrictions. Conlon said the developer will not request city subsidy funding until the project hits the required presale threshold (approximately 60%) and that the subsidy would be applied uniformly to reduce share prices for all buyers rather than selectively later.
Council members praised the cooperative model as an efficient use of land and a way to increase attainable homeownership for seniors. The resolution passed on a voice vote (motion by Council Member Miller), and staff said they structured disbursement so city funds are withheld until presale thresholds are met.
