Rising utility expenses impede over 1,000 homes in Ontario County, causing a significant housing crisis
Ontario County Faces Housing Crisis Due to Surprise Utility Costs
Ontario County is grappling with a significant hurdle in addressing its housing crisis, as unexpectedly high energy infrastructure costs imposed by utilities at the last stages of project development threaten to derail progress.
These surprise utility fees, amounting to $10 to $15 million for the Uptown Landing project in Canandaigua and $4 million for a similar development in Farmington, are related to rerouting or adjusting existing electric infrastructure rather than adding new grid capacity. This imposes tens of thousands of dollars in additional costs per housing unit, making projects financially unfeasible and stalling over 1,000 urgently needed housing units.
The county officials characterize this as a "critical and avoidable" threat that is undermining progress despite strong community support and substantial economic development grants secured due to Ontario County’s “Pro-Housing Community” designation.
These utility fees directly raise development costs and ultimately increase housing prices or halt project completion. The sudden imposition of these costs at the final project stage has blindsided developers, jeopardizing the affordability and availability of new homes. Unlike general city development charges that fund broad infrastructure and community services to support growth, these utility costs are specific to energy infrastructure modifications required by utilities, not expansions or improvements.
The Housing Ad Hoc Committee, established following the county's initial Housing Needs Assessment in 2024, is working to address energy infrastructure transparency and affordability to prevent economic and social stagnation. The committee is working with the New York State Public Service Commission, state lawmakers, and utility companies to demand clearer forecasting, transparency in cost estimates, and a more equitable system for sharing infrastructure costs.
The aging population also requires more senior-friendly housing, which is now at risk of not being built in time to meet demographic shifts. Additionally, 23% of households in Ontario County fall below the county's "survival budget" level, and 43.2% of renters in Ontario County spend more than 30% of their income on housing, a commonly used threshold for affordability. The committee is concerned that without immediate and coordinated action, the momentum made in solving the housing crisis is at risk.
In the past year, municipalities like Victor, Farmington, Geneva, and Canandaigua secured over $17 million in economic development grants. However, these grants are now at risk of not being fully utilised due to the unexpected utility costs.
The county is placing blame on energy providers NYSEG and RG&E for withholding critical information during early planning stages. The issue threatens to derail the progress Ontario County has made as a certified "Pro-Housing Community."
Ontario County is committing to continuing its outreach efforts and policy advocacy through its Housing Ad Hoc Committee to ensure that energy infrastructure policy doesn't sabotage the region's pro-housing momentum. The committee is hopeful that with clearer communication and more equitable cost-sharing, the housing crisis in Ontario County can be addressed and the region can continue to grow and thrive.
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The sudden increase in utility fees for energy infrastructure modifications is a critical issue that directly impacts development costs and housing affordability in Ontario County, particularly for the Uptown Landing project in Canandaigua and similar developments in Farmington.
These energy-related costs, imposed by utilities such as NYSEG and RG&E, have arisen at the final project stage, posing financial challenges and risking the completion of over 1,000 urgently needed housing units. The Housing Ad Hoc Committee is working to address this issue by advocating for increased transparency and more equitable cost-sharing with utility companies.
