The Tompkins County Industrial Development Agency has issued a notice of default to the Vecino Group over the Asteri Ithaca affordable housing project.
The action follows an order from local authorities requiring residents to vacate the building because of fire and safety concerns that created an immediate hazard.
TCIDA said the project is required to operate and maintain the facility in compliance with all applicable laws and safety regulations under its incentive agreement.
Based on reported violations, the agency determined the project is currently in default of those obligations.
According to the notice, Vecino Group has 30 days to correct the violations.
If the issues are not resolved within that timeframe, the agency may pursue remedies under its agreement, including terminating incentives and seeking recapture of financial assistance.
“The IDA’s PILOT incentives are part of a transactional relationship in which reduced tax obligations are exchanged for development that creates community benefits. The Asteri project can only be beneficial to the extent if provides safe, code-compliant, and community-friendly residences for its tenants,” said Deborah Dawson, chair of the TCIDA.
“The project management’s failure to comply with all applicable regulations and codes is a disservice not only to its tenants, but also to the adjacent conference center, the Downtown Ithaca Alliance and downtown merchants, and the entire community. The TCIDA cannot continue to support the Asteri project unless and until it is properly managed and maintained,” said Kellea Bauda, administrative director of the TCIDA.
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