North Castle Hesitant to Consider Relocation of Two AFFH Units

A majority of the North Castle Town Board appeared to oppose a request to relocate two affordable housing units from a luxury age-restricted condominium development in Armonk because of unfavorable circumstances and market conditions.

Virginia and Frank Madonna Sr., developers of the 16-unit project called The Byram at 585 Main St. in Armonk, recently asked for relief from the board, citing delays and exorbitant cost escalations they encountered that were fueled by the COVID-19 pandemic.

As a result of the requirement to build affordable units that are at least 1,600 square feet to comply with the town code, the Madonnas have requested moving their two units to 470 Main St., which opened about two years ago after being constructed by local developer Michael Fareri. Under the code, an affordable unit must be no less than 80 percent of the size of the market-rate units that are on site.

“We know that we have to supply these units, (we’re) more than willing to supply them, but it’s a difficult location,” Frank Madonna Sr. said an appeal to the Town Board on July 12. “Honestly, is it something that’s so terrible that you wouldn’t consider?”

“This particular project has taken especially longer than expected, has cost us tremendously more than we ever anticipated,” Virginia Madonna also noted. “We went through COVID, and nobody else built through COVID.”

She said that the Homeowners Association fees for the affordable units would be well over $1,000 a month, and it’s possible the market-rate unit owners might want to add services or amenities that would be difficult for the affordable units residents to pay.

The Madonnas also explained there are no sidewalks outside the location of their project, but they do exist at 470 Main St., which allows residents to walk into downtown Armonk, one of the objectives of affordable housing.

In their June 26 letter to the Town Board and during their discussion with the board on July 12, they cited the town’s decision to allow the developer of the Summit Club, where 65 luxury condominium units that are part of a golf course community are proposed, to relocate the affordable units because it would not be practical to include them on site.

Fareri also wrote a letter to the board late last month supporting the change, explaining that his units at 470 Main St. have an average monthly common charge of $350 and monthly real estate taxes of about $250. His units are about 1,000 square feet.

However, most board members said they were hesitant to make an exception based on market or economic conditions. They also cited the code, which states “a strong preference” to keep the affordable units on site unless it isn’t practical.

Councilman Matt Milim called unit relocation “a slippery slope” because the town could be hit with multiple similar requests from other developers.

“I think this has the potential to set a precedent and we wind up having every developer that we have as things get built come in and say they want to move all of their AFFH units to one spot, and we have this cluster of AFFH in one development or two developments. and I don’t think that would be a good thing for the town or those residents,” Milim explained. “I think it could create a stigma.”

Also opposing the request were councilmen Jose Berra and Saleem Hussain. Hussain explained that part of his reasoning was to see economic status diversity within different types of housing, and relocating units would work against that goal.

If the board were to contemplate changes, Hussain said he would want to see it as part of a revised code that could potentially apply to all developers who might meet certain parameters rather than entertaining requests on a case-by-case basis.

Meanwhile, Councilwoman Barbara DiGiacinto said she had mixed feelings about the issue. The Madonnas had agreed to on-site affordable units during site plan approval, but they were also hurt by COVID.

“I’m not saying that I’m in favor of moving them off site, but I think it’s an important consideration to keep in mind,” she said.

When DiGiacinto asked for the opinion of Director of Planning Adam Kaufman, he said he would not object to the request.

“I see it more akin to the Summit Club, the type of development that’s being proposed, where you have a small multifamily development that is also high end that has these types of amenities,” Kaufman said. “It potentially could be a burden, and having them off site might potentially solve that problem.”

The board did not entertain the request, but left open the possibility of scheduling a work session to discuss revising the town code to have more objective standards to allow moving affordable units off site.