HomeMy WebLinkAbout20220690 Crescent and Jefferson Zoning Amendment MV Memo to Planning Board 10.17.22MAZZOTTA & VAGIANELIS, P.C.
Attorneys and Counselors at Law
9 WASHINGTON SQUARE
ALBANY, NEW YORK 12205
TELEPHONE: (518) 452-0941 John N. Vagianelis
FAX: (518) 452-0417 jvagianelis@mvattorneys.com
TO: City of Saratoga Springs
Planning Board Members
FROM: John N. Vagianelis, Esq.
DATE: October 17, 2022
SUBJECT: Liberty Workforce Apartments (“Project”)
Zoning Map Amendment Application
30-acre lot on the corner of Jefferson Street and Crescent Avenue
At last week’s Planning Board Meeting you asked the Applicant to circle back to you on the
concept of “affordability in perpetuity.” As you know, the Project’s anticipated financing and/or
PILOT Agreement with the City of Saratoga Springs will be for a minimum of 32 years with the
possibility of 50 years depending on the financing options available to the Project.
The Applicant appreciates the Planning Board’s concern that any zoning map amendment not be
used by a third-party down the road to develop something other than affordable workforce
housing at this location. Having said this, the Applicant is more than willing to accept a sunset
provision that will require that the Applicant pull a building permit by a date certain or the
zoning map amendment expires and reverts back to its current status.
Also, it should be noted that the Applicant, Liberty Affordable Housing Inc., has developed in
excess of 4,000 affordable units and has been involved with the development and/or preservation
of 22 affordable projects across New York and Massachusetts. Liberty Affordable is a not-for-
profit corporation with tax-exempt 501(c)(3) status. Liberty Affordable’s organizational
documents and tax-exempt status only allows it to develop affordable housing. Liberty
Affordable is a not-for-profit developer. A for-profit developer, for example, could represent
that it intends to develop affordable housing, but its legal status would not require it to do so.
This is an important distinction which should also provide the City comfort.
Also, Liberty Affordable Housing Inc. has invested significant time and money into developing
this location within the City of Saratoga Springs since 2018 and has every intention of
developing it assuming the Applicant receives the necessary approvals from the City. As
previously shared, (i) the ownership structure with a tax credit equity investor, (ii) NYS
Regulatory Agreements encumbering the project and (iii) City’s PILOT Agreement will all
ensure the projects affordability in accordance with New York State and IRS requirements for a
MAZZOTTA & VAGIANELIS, P.C.
Attorneys and Counselors at Law
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minimum of 32 years (2-year construction period and 30-year permanent financing period) and
possibly as long as 50 years depending on the financing options available to the Project.
“Affordability in Perpetuity” is not a viable concept as it runs contrary to the requirements of the
affordable housing development and financing industry. Equity investors and financing sources
are constrained by the requirements of the Internal Revenue Code and its regulations, and also
various NYS affordable housing programs, which change and evolve overtime, including their
respective specific requirements concerning “affordability.” Any definition of “affordable”
crafted by the City of Saratoga Springs today may run contrary to IRS and/or NYS programmatic
requirements down the road, for example. While the Applicant can represent that the project will
remain affordable for a minimum of 32 years, as previously explained, the Applicant cannot
represent or sign on to that “in perpetuity.” The ownership structure, Regulatory Agreements
and PILOT Agreement for this project will be very similar to what the City of Saratoga Springs
has with the Intrada project, for example. Moreover, to our knowledge, the City of Saratoga
Springs has not imposed an “affordability in perpetuity” requirement on other apartment
developments within the City of Saratoga Springs for all the reasons outlined herein.
Please feel free to reach out to me directly if you have any questions related to this information.
JNV/bf