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Beacon Communities and Saratoga Springs Housing Authority Announce Workforce Housing Project in Saratoga Springs
New 98-Unit Development will Help Address Workforce Housing, and Affordability Crises Threatening Spa City’s Long-Term Viability
SARATOGA SPRINGS, NY (January 6, 2025) –Beacon Communities, one of the nation’s leading affordable housing developers, and the Saratoga Springs Housing Authority today announced the start of work on a workforce housing development on Allen Drive in Saratoga Springs that will help address the city’s acute affordable and workforce housing shortage.
Beacon and Saratoga Springs Housing Authority will soon begin demolition of six outdated fourplexes on the 3.1-acre site and will replace them with six, newly constructed three-story buildings that will include 98 one, two, and three-bedroom units for single adult households and small families with incomes of 50 to 80% the area’s median income (AMI). Forty percent of units will have a workforce preference.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “The Allen Street development in Saratoga Springs is a crucial step in addressing the housing affordability challenges facing this community. By creating 98 high-quality, affordable units, the Allen Street development will not only provide homes for families and workers but also help to ensure the long-term viability of Saratoga Springs as a place where all New Yorkers, regardless of income, can live, work, and thrive. This project reflects our commitment to expanding affordable housing opportunities across the state.”
Once complete, the new community will be owned and managed by Springs West Apartments LLC, an affiliate of the Saratoga Springs Housing Authority. Leasing is expected to begin in spring 2026 and be complete by the end of that year.
“This project is a significant step forward for Saratoga Springs as we work to meet the growing demand for affordable housing for families, workers, and seniors,” said Paul Feldman, executive director of the Saratoga Springs Housing Authority. “We are excited to partner with Beacon Communities and will be proud to own and manage new, high-quality homes where residents will have access to the resources they need to thrive.”
The site is located close to Saratoga Springs’ bustling downtown, providing residents with easy access to entertainment, arts, shopping, municipal facilities, and employment opportunities. The new development will feature amenities such as laundry rooms in each building, a community room, gym, playground, and bulk storage spaces. Residents will have access to 92 off-street parking spaces at the rear of the buildings as well as 26 on-street spaces on Allen Drive.
“We’re thrilled to work with the Saratoga Housing Authority to develop sustainable and affordable homes for residents so they can continue to live in and contribute to their community,” said Dara Kovel, CEO of Beacon Communities. “Saratoga Springs is a beautiful city in desperate need of more affordable housing options. We’re looking forward to getting this critical project underway in collaboration with our public and private sector partners.”
The Allen Street development comes as New York is grappling with a mounting affordable housing crisis. In 2022, 38.9% of households statewide spent 30% or more of their income on housing, making New York the third highest rate of housing cost burden among states.
In Saratoga Springs, a 2016 housing study commissioned by the city found that 80% of renters struggle with housing costs. The cost of living has increased considerably since then and Saratoga County has one of the widest income gaps in the nation.
Local officials and business leaders have been sounding the alarm on this crisis for years, noting that the city’s main economic drivers – tourism and hospitality – rely heavily on a workforce that is increasingly getting priced out of the market when it comes to housing, along with members of other critical professions such as teachers, nurses, and emergency personnel.
“I commend Saratoga Springs Housing Authority and Beacon Communities for coming together to address residents’ housing needs,” said State Assemblymember Carrie Woerner. “Access to quality, affordable housing is fundamental to the health of all communities, and I am pleased to see Saratoga Springs take this exciting step towards addressing New York’s housing crisis.”
“Saratoga Springs has long faced challenges with housing affordability, and this project represents a major victory for our community,” said Saratoga Springs Mayor John Safford. “Affordable housing options keep Saratoga Springs accessible for the people who make our city such a wonderful place to live and work. I’m grateful to Beacon Communities and the Saratoga Springs Housing Authority for their leadership in addressing this pressing issue.”
“Affordable housing is essential for maintaining a strong, diverse workforce and a thriving local economy,” said Todd Shimkus, president of the Saratoga County Chamber of Commerce. “With the median sales price of a home in Saratoga Springs now exceeding $600,000, our city’s sustainability relies on us building more affordable housing so the people who work here can also live here. We cannot be a ‘city in the country’ just for the rich and wealthy. The Saratoga County Chamber of Commerce looks forward to supporting this project and is eager to see the benefits it will bring to our community come to fruition.”
The $42.8 million Allen Drive project is being financed with tax exempt bonds issued by NYS Homes & Community Renewal along with an allocation of Federal Low-Income Housing Tax Credits, NYS Low-Income Housing Tax Credits, and state subsidy loans. The tax-exempt bonds are backed by a Letter of Credit from KeyBank, N.A. Both the LIHTC and SLIHC were purchased by Key Community Development Corp.
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About Beacon Communities LLC
Beacon Communities LLC is an owner, developer, and manager of affordable and mixed-income housing across the northeast, with nearly 19,000 apartments in eleven states. Beacon’s developments include new construction, historic adaptive reuse, public housing redevelopment and the preservation of existing housing. The organization’s driving passion is to create and manage well-designed, healthy homes that improve lives and enhance neighborhoods. https://www.beaconcommunitiesllc.com/.
About Saratoga Springs Housing Authority
The Saratoga Springs Housing Authority is the leading provider of affordable housing in the City of Saratoga Springs. Established in 1952 to provide safe, decent housing for elderly families and persons on fixed or low incomes. The SSHA is now a developer of affordable housing and has completed construction of two tax credit projects and breaking ground on another. The SSHA owns and operates over 350 units of affordable housing in the city. The agency also provides voucher assistance to 100’s of families in the city, including special program vouchers for the elderly, Veteran’s and persons with disabilities. Learn more here. https://saratogaspringspha.org/.
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