T
he loss of funding for Galvan Initiatives Foundation's low-income housing project in Hudson has raised concerns about the future of affordable housing in the city. The New York State Division of Homes and Community Renewal revoked the organization's Low-Income Housing Tax Credits after it demolished two historic buildings without obtaining the necessary approvals. This move forced Galvan to shift its focus away from its initial plan for two buildings at the intersection of State and Seventh streets.

    The first building was intended to be market-rate and partially funded through Payment in Lieu of Taxes (PILOTs), while the second would be 70% affordable, with commercial spaces as well. However, due to the loss of funding, Galvan has had to adjust its plans for the second building. Now, fifteen units will be available for those earning up to 80% of the area median income (AMI), five for those earning between 80% and 120% of AMI, and the remaining units will be market-rate.

    Galvan is now seeking tax breaks for its $26 million project from the local industrial development agency instead of the state. The agency is being asked for $3 million in property tax breaks over 20 years, as well as sales tax and mortgage recording tax breaks.

    The Hudson-Catskill Housing Coalition, which represents low-income tenants, has withdrawn its support for these tax breaks after Galvan shifted its focus away from affordable housing. The mayor, who is also a tenant in a Galvan building, is set to vote on these tax breaks despite previously recusing himself from a vote regarding the first building in the Galvan duo.

    Hudson officials are questioning the developer's request for millions in tax breaks, raising concerns about the future of affordable housing in the city.