By Eric Curl
Jan. 10, 2023 – The city is considering the transfer of 19 city-owned vacant properties in Cuyler-Brownsville to facilitate the development of “mixed income affordable and workforce housing” by a New York-based nonprofit developer.
The transfer will allow the Chatham-Savannah Land Bank Authority to make the properties available for purchase so the nonprofit Galvan Foundation can acquire and develop housing for sale and rent, under the proposal going before the Savannah City Council Thursday. The land bank authority will return at least 90% of the net sale proceeds to the city.
Galvan in turn will reportedly raise and invest upwards of $5 million to develop housing on the acquired vacant property, with development expected to begin in 2023. In addition, Galvan will also provide $1 million to the city’s Savannah Affordable Housing Fund for housing improvements, new housing and down-payment assistance. The proposed investment is in addition to $50,000 that Galvan contributed to the fund in 2022.
The foundation’s website features a page devoted to “Helping Savannah fight its housing crisis” that references a finding by the Housing Savannah task force that 40% of the city’s households cannot afford quality housing. Noting last year’s $50,000 contribution to the affordable housing fund, the foundation states further that they will “continue working with community leaders to preserve the character of Savannah and its diverse, historic neighborhoods.”
The foundation also made a $10,000 donation last year to support the nonprofit History Theater‘s play about Susie King Taylor, according to an article in the Savannah Tribune.
While city staff is recommending approval of the transfer, Galvan’s projects have not always been warmly received. The nonprofit has been accused by local officials in Hudson, New York, where the foundation owns large amounts of properties, of “hoarding” and artificially inflating housing values, as reported by the Albany Times Union last February.
Created through an intergovernmental agreement between the city and Chatham County, the land bank authority is a separate entity formed to acquire vacant, blighted and tax delinquent properties and assist in the return of the properties to a productive use. Galvan’s proposal comes after the land bank authority adopted new guidelines and requirements last August to better ensure developers meet the terms of affordable housing agreements. The new guidelines and requirements require that most housing developed on land bank acquired property will be affordable to households earning 80% of area median income (AMI) or less.
Galvan intends to develop the properties in accordance with the land bank authority’s affordability guidelines and include a combination of housing for people earning up to 80% of the AMI and households earning up to 120% of the AMI, according to the foundation’s treasurer, Dan Kent, who submitted the property transfer request. Kent said via email on Jan. 11 that the project will include a mix of rental units in small attached buildings, and homeownership opportunities in single family homes.
As part of Galvan’s $1 million contribution to the Savannah Affordable Housing Fund, the Cuyler Brownsville Homes initiative will prioritize supporting households earning under 80% of the Area Median Income, Kent said.
Kent said Savannah is the second location for the foundation after the founder, T. Eric Galloway, moved to Savannah three years ago.
“When we learned of the City’s excellent Housing Savannah Action Plan, we began discussions about how we can use our resources to support the effort,” he said. “Our work has always focused on promoting housing affordability and strengthening communities, so we are thrilled to have the opportunity to support the City’s ambitious plans.”
Editor’s note: This article was updated on Jan. 11 to include the information provided by Dan Kent.
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