HomeMy WebLinkAbout20220690 Crescent & Jefferson Zoning Amendment Memo to Planning BoardMAZZOTTA & 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 28, 2022
SUBJECT: Liberty Workforce Apartments (“Project”)
Zoning Map Amendment Application
30-acre lot on the corner of Jefferson Street and Crescent Avenue
At last night’s Planning Board Meeting you asked the Applicant to circle back to you and
provide examples of affordable housing projects which may have reached normal maturity of
their affordability requirements, but nonetheless continued and extended their affordability
requirements.
For starters, in my twenty-five years of experience as an affordable housing attorney, I have not
come across an “affordable” project which became a “market rate” project. There are many
reasons for this, but easily identifiable reasons include, but are not limited to: (i) “affordable”
projects are not luxury apartments with typical “market rate” amenities; e.g., larger unit sizes,
swimming pools, exercise facilities, fire pits, pickle ball courts, tennis courts, fireplaces, granite
countertops and other similar amenities. It is not practical or easy to convert “affordable”
projects to “market rate” without considerable physical changes and expenditures, including
redesigns, potentially new municipal approvals, etc. and (ii) typically “affordable” projects enjoy
the benefits of a PILOT Agreement with the local municipality in order to satisfy the project’s
economics (income and expense). A conversion of an “affordable” project to a “market rate”
project would necessarily involve the loss of a real estate tax exemption pursuant to a PILOT
Agreement or more favorable assessment pursuant to Real Property Tax Law Section 581-a, for
example. Consequently, if this occurs, the municipality will receive increased property tax
revenue from a “market rate” project and lose “affordable” units.
As far as examples of “affordable” projects which remained “affordable” beyond the initial thirty
(30) years, for example, we can share the following examples, and there are many others:
1. Parkedge Townhomes, 116 Parkedge Drive, Utica, New York
Liberty Affordable Housing Inc. acquired in 2020 Parkedge Apartments (198 units in 27
buildings), which is a New York State Mitchell-Lama Project governed by Article II of the New
MAZZOTTA & VAGIANELIS, P.C.
Attorneys and Counselors at Law
2
York State Private Housing Finance. The Project was originally developed in the 1970’s (50+
years ago) and was in desperate need of a rehabilitation and an upgrade. Liberty Affordable
financed the rehabilitation and redevelopment through the New York State Housing Finance
Agency, State of New York Mortgage Agency and a syndication of low-income housing tax
credits. The Project’s ownership and financing ensures that the Project shall remain affordable
for at least another thirty years and brings the Project’s aggregate affordability period in excess
of eighty (80) years, assuming it is not further extended.
2. Kennedy Plaza Tower, 700 Cornelia Street, Utica, New York
Liberty Affordable Housing Inc. acquired Kennedy Plaza Apartments in 2010 (204 units in 1
building), which is a New York State Mitchell-Lama Project governed by Article II of the New
York State Private Housing Finance. The Project was originally developed in the 1970’s (50+
years ago) and was in desperate need of a rehabilitation and an upgrade. Liberty Affordable
financed the rehabilitation and redevelopment through the New York State Housing Finance
Agency, State of New York Mortgage Agency and a syndication of low-income housing tax
credits and Section 8 Housing Assistance Payments. The Project’s ownership and financing
ensures that the Project shall remain affordable for at least another thirty years and brings the
Project’s aggregate affordability period in excess of eighty (80) years, assuming it is not further
extended.
3. Robinson Square Apartments, 325 Hamilton Street, Albany, New York
Liberty Affordable Housing Inc. acquired Robinson Square Apartments in 2019 (124 units in 26
buildings), which was previously owned by a New York State Private Housing Finance Law
Article V Redevelopment Company with a 30-year PILOT Agreement with the City of Albany.
The City of Albany granted a new 32-year PILOT Agreement in favor of an Article XI Housing
Development Fund Company governed by Article XI of the New York State Private Housing
Finance. The Project was originally developed in the 1980’s (40+ years ago) and was in
desperate need of a rehabilitation and an upgrade. Liberty Affordable financed the rehabilitation
and redevelopment through the New York State Housing Finance Agency, State of New York
Mortgage Agency and a syndication of low-income housing tax credits and Section 8 Housing
Assistance Payments. The Project’s ownership and financing ensures that the Project shall
remain affordable for at least another thirty years and brings the Project’s aggregate affordability
period in excess of seventy (70) years, assuming it is not further extended.
Please feel free to reach out to me directly if you have any questions related to this information.
JNV/bf