As New York seeks to create more affordable housing, one local mayor says the current way the state and developers are going about it is negatively affecting rural communities.
In 2024, Ithaca Neighborhood Housing Services (INHS) transformed the village’s former elementary school into an affordable housing complex dubbed Whate Street Apartments. Speaking with FLX Local Media, Village Mayor Don Wilson said affordable housing projects like Wheat Street Apartments have drastically increased the village’s population but aren’t paying their fair share of taxes to host communities.
Wilson told FLX Local Media that the village gained over 100 new residents following the opening of Wheat Street Apartments, representing an approximate 20% populaton increase for the small village. According to the mayor, this increase in population has led to an increase in the need for services, with the fire department seeing a 35% call volume increase.
Despite the increase in population and need for services, Wilson argues that, because of the state’s tax laws, INHS and similar developers across the state are not paying their fair share in taxes to their host communities.
“I completely understand the need for affordable housing, and I understand that people need these programs and they need these types of buildings and services. What I don’t understand is how places like Ithaca Neighborhood Housing can get away with moving into these communities and basically paying nothing to these communities,” Wilson said.
In particular, Wilson takes issue with the 581-A tax law, a law that states that if at least 20% of a rental building’s units are classified as affordable housing, the property is assessed on the money the property actually earns, not what could be earned on the open market. Because of this, Wilson says Wheat Street Apartments are paying “pennies” compared to other taxpayers in the village.
“I honestly think that this 581-A tax code needs to be thrown away and started anew… That needs to be revamped so that these properties need to pay something that’s fair to their communities,” Wilson continued.
Wilson warns that Cayuga, along with other municipalities with affordable housing projects, could be forced to raise taxes to pay for the increases expences associated with the increase in population.
Wilson also said that INHS, in particular, has acted as a bad neighbor, saying that, despite claiming it wanted to work with the village and be a community partner, the developers take no interest in the community.
“One thing [INHS has] proven is that they’re just not going to be [good neighbors], and it’s not the residents, it’s the developers themselves,” said Wilson.
Wilson has been a vocal opponent of the apartments after the scope of the project changed. The property was bought by the Gavras Center in 2020 to house those 55 and older or those with intellectual or developmental disabilities; however, the project turned into a complex to provide units based on income level, with a few set aside for those with intellectual or developmental disabilities.
During an April 2024 community meeting about the project, Wilson argued this change was tantamount to a bait-and-switch scheme.
“Every part of this presentation is a lie to the people of Cayuga,” Wilson said at the meeting.
