Chason Affinity, developers of the “Collegiate Village” student housing complex, and Villa Maria College, today filed a lawsuit against the New York State Division of Human Rights and its Commissioner Galen D. Kirkland in Erie County Supreme Court.
The developers and the college seek to set aside a 2008 agreement they believe is not valid, and clear the way for a $25 million effort to renovate and preserve up to 276 units of market rate housing, and provide affordable rents to families in the Kensington-Eggert neighborhood.
Kensington Village, with 928 apartments, is the largest residential complex in Western New York. It was built and has been owned by the Chason family for over 60 years. Sitting on 75 acres, it is a long-standing anchor in the community.
Developer Mark Chason and his company converted a portion of the property into Collegiate Village. The adjacent family housing section that they are trying to renovate, would continue a resurgence along the Cheektowaga/Buffalo border.
“In addition to the obvious positive impact on existing residents, this project would pump millions of dollars into the Western New York economy and the Kensington-Eggert community by providing over 150 construction jobs and improved affordable housing in difficult economic times,” Chason said.
“Villa Maria College is disappointed by the fact that the only way we can move forward with these exciting projects is to bring suit against the Division of Human Rights,” said Villa Maria College’s President, Sister Marcella Marie Garus.
In 2007, Villa Maria College, looking to grow by adding student housing, agreed with the owners of Kensington Village Apartments on a plan to redevelop a portion of Kensington Village into a complex focused on students, faculty and staff, as well as their families, of local colleges and universities including Villa Maria.
After construction began, the Division contacted the developers and Villa Maria to notify them that it was the position of the Division that all-student housing in New York is illegal and discriminatory even if it was owned by a College.
Chason Affinity and the college adamantly disagreed with the legal positions and heavy handed tactics of the Division. However, faced with shutting down construction, the parties were forced to enter into a settlement agreement in April 2008 that laid out certain parameters for how the project would be constructed if tax-exempt bond financing was obtained. The Division has since admitted it was wrong when it threatened to sue Chason Affinity on the grounds that all student housing is illegal.
The delays caused by the Division in 2008 caused $100 million in tax-exempt bond financing on Collegiate Village to be lost. Now, in 2010, the Division is in the way of a $25 million renovation on the adjacent Kensington Village Gardens. Again, the Division’s actions are threatening another important project.
Chason and his company regrouped and identified approximately $25 million to create affordable family housing. Those funds would include a combination of private, state and federal dollars, as well as historic tax-credits.
Despite the significant change in circumstances and the immediate availability of $25 million, the Division is not willing to let the project advance.
In reaction, the development partners are compelled to seek the intervention of the Courts to set aside the settlement agreement in order to pursue the $25 million affordable housing plan.