A spat between a nonprofit and the state appears to have cost Hudson affordable housing. It may cost the city even more.
The state Division of Homes and Community Renewal stripped Galvan Initiatives Foundation of Low-Income Housing Tax Credits after the charity demolished two potentially historic buildings without state approval, the Times Union reported. The loss of the funding mechanism forced Galvan to pivot away from affordable housing plans it had on the site.
Three years ago, Galvan presented plans for two buildings at the intersection of State and Seventh streets in Hudson. One would be market-rate and funded in part by PILOTs, while the other would be 70 percent affordable; both would have commercial spaces, too.
The developer ultimately shifted the market-rate building to workforce housing, meaning it would be affordable to those earning between 80 and 120 percent of the area median income. That building is near completion.
With the second building, however, the loss of the tax credits is pushing Galvan from affordable housing to a mix of market-rate and workforce housing. Fifteen of the 75 units will be for those earning up to 80 percent of the AMI, another five will be for those between 80 and 120 percent and the rest will be market rate, according to recent documents submitted by Galvan.
Galvan is still seeking tax breaks, but is looking to the local industrial development agency for help, instead. Galvan is looking for $3 million in property tax breaks over 20 years, in addition to sales tax and mortgage recording tax breaks for the $26 million project.
The Hudson-Catskill Housing Coalition, which represents low-income tenants, pulled support for the tax breaks after the nonprofit developer pivoted away from the first affordable housing plan. The mayor, a member of the Hudson Industrial Development Agency, is set to vote on the tax breaks despite being a tenant in a Galvan building and previously recusing himself from a vote regarding the first building of the Galvan duo.
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