Public housing

Kingston lawmakers consider tax relief deal to renovate Stuyvesant Charter social housing complex – Daily Freeman

KINGSTON, NY – Aldermen are considering a 32-year payment in lieu of taxes agreement for the Stuyvesant Charter property that would lead to the full renovation of the Kingston Housing Authority-controlled apartment complex.

John Madeo, executive vice president of Mountco Construction and Development Corp., told the Joint Council’s finance and audit committee at a meeting on Tuesday that there was a considerable amount of work to be done for the Stuyvesant complex. Charter, which is more than 40 years old. He said an application had been filed with the Housing Finance Agency and the state’s Homes and Communities Division to help fund the redevelopment of the property through the issuance of tax-exempt bonds. tax and a low-interest loan.

“This funding structure is similar to the number of housing authorities across the country trying to reposition their development,” Madeo said.

The payment in lieu of taxes, or PILOT, agreement would require developers to pay $144,000 in property taxes for the first year, which would increase by 2.5% each year thereafter, the property assessor said. the city, Dan Baker. He said the apartment complex currently pays around $99,000 a year in taxes.

There would also be a one-time $120,000 “municipal impact fee” payment to the city.

The apartment complex is owned by Stuyvesant Charter Inc., which in turn is controlled by the Kingston Housing Authority. Both groups have partnered with Mountco Construction and Development Corp. to redevelop the 120-unit apartment complex on Sheehan Court, with the housing authority retaining 51% ownership of the property.

Benjamin O’Shea, executive director of the housing authority, previously said Mountco would carry out the rehabilitation work on the property and receive state and funding agency authorized construction fees. He said the housing authority would continue to manage the property and receive management fees. After 15 years, the housing authority would have the option of buying out Mountco’s stake in the property, O’Shea said.

“We are close to getting approved funding for this project,” Madeo told the aldermen. “As you can imagine, we compete for these funds with other housing authorities and other state developers. State resources are limited. He said the developers were trying to get the project funded during the March or June state funding rounds.

Madeo said the state expects developers to show they are ready to move forward with their projects before they get funding. Part of that commitment is getting planning permission for the project, which developers have already applied to the city for, he said. Madeo said developers must also obtain final approval from the US Department of Housing and Urban Development.

The other state requirement is approval for a PILOT agreement, Madeo said. He said the state is clearly looking for that level of support from the city.

The committee eventually approved a resolution authorizing the mayor to enter into the PILOT deal. This resolution still needs to be voted on by the entire board.

“The total development cost of this project is over $40 million, and of that, $18 million is rehabilitation costs,” Madeo added. “So you can see there’s a lot of rehabilitation work that needs to be done there.” He said all rehabilitation work would be done without removing any tenants from their units and that Mountco is committed to ensuring that no tenant pays more than 30% of their income in rent, whether they receive or not federal housing assistance under Section 8.