Albany looking at change of plans for $1.8 million homeless housing grant

ALBANY — It’s on to Plan B for a city of Albany housing project after the projected costs of the initial proposal of non-congregate housing proved to be too big a concern.

Instead, the city plans to use a nearly $1.8 million grant received through the American Rescue Plan Act to build duplex apartments for low-income families who are in danger of losing their current residence. The housing will be for short-term use, not as permanent residences.

“What we’re recommending now is the affordable, multiple-family rental (units) which address families that are likely to have housing instability,” John Hawthorne, director of the city’s Department of Community and Economic Development, said.

When the U.S. Department of Housing and Urban Development approved the grant in 2021, the city expected to build non-congregant housing for individuals and families.

However, further study showed that maintenance and other costs would have been as much as $250,000 per year to provide services and pay for maintenance costs over 15 years.

“It would have been a requirement to have case management around the clock as well as security and utilities: water, sewer, lights,” Hawthorne said. “All of those were expenses that would have to have been paid.”

Instead, the new proposal calls for family-based apartments available at lower than market rate to families whose income is less than the area’s median income.

The proposed location for the duplexes is a site on South Carroll Street in east Albany that was the former site of an apartment complex on land owned by the city.

South Albany sites owned by the city were problematic due to potential flood issues, and the east Albany location is convenient to transportation.

“Based on the current cost of construction, we estimate being able to develop four duplexes which would house eight families,” Hawthorne said. “If the cost of construction goes down, we could do more.”

Each unit would be either a two- or three-bedroom apartment, and two of the apartments will comply with Americans With Disabilities Act requirements, the director said.

The deadline for returning an allocation plan for the grant money is March 30, and the Albany City Commission is scheduled to vote on the latest recommendation at its Feb. 28 regular meeting. Deadline for completing the construction is 2025.

Special Photo: City of Albany