Sadie McKeown, a figure associated with nearly $7 billion from an EPA climate-focused slush fund, finds herself at the center of a contentious situation involving low-income housing sales in Tarrytown, New York.
The New York Post reported that McKeown played a role in the sale of Asbury Terrace Apartments in Tarrytown, a move that led to dramatic rent increases, sparking outcry from tenants and raising ethical questions.
The EPA funding in question, part of a significant $20 billion Greenhouse Gas Reduction Fund, was intended for energy-efficient housing projects during the closing months of former President Joe Biden's tenure.
McKeown, who had been a Democratic donor, was appointed by Andrew Cuomo in 2021 to New York's Housing Finance Agency and the Energy Research and Development Authority. Her involvement with the EPA fund was notable, as she anticipated receiving $6.79 billion from it.
When former President Trump took office, his EPA chief, Lee Zeldin, froze the fund, citing its inefficacy. Nonetheless, before this freeze, allocations were made, including a $3 million award for a housing project that attracted grievances from locals in Tarrytown.
McKeown, serving as president of the Community Preservation Corporation, assisted in creating Climate United, an entity tasked with overseeing the EPA funds.
During 2020, she facilitated the sale of Asbury Terrace Apartments to developer Mountco for $15.5 million, a transaction that would soon become rift with issues due to rent hikes.
Asbury Terrace's new ownership saw rents surge by up to 80%, overwhelming many low-income tenants who relied on their residences. Tenant Maddy Viruet voiced a widespread sentiment saying, "We have nowhere to go — other than to just pack our bags and leave."
Amid these daunting changes, residents found the building’s communication lacking, leading to frustration as highlighted by Haydee McCarthy. "With the exception of one or two neighbors, there was never any communication from the board."
Yet, John Madeo contended there was no intention to force tenants out, disputing claims of income inequality within Asbury Terrace. He suggested that housing funds could not restrict applicants based on community residency, challenging assumptions about the sale’s fairness.
Despite the turmoil, the transaction garnered approval from New York’s Attorney General and a state Supreme Court justice. Legal scrutiny arose over possible ethical breaches, such as conflicts of interest, particularly regarding the sale’s process.
Adam Bradley acknowledged the ethical debate, stressing that those with vested interests should abstain from direct involvement.
McKeown, however, insisted on the effectiveness of the board's management at Asbury Terrace. She emphasized, "I had no direct interest other than to see new affordable units get developed."
In defense, McKeown maintained that her organization, CPC, was not engaged in the financing aspects of the Asbury project, underscoring her commitment to developing affordable housing units. "CPC had no part of the financing at Asbury Terrace," she clarified.
Governor Kathy Hochul praised supplementary endeavors where leftover funds fostered new housing developments, like senior living spaces in a repurposed YMCA.
However, critics highlighted an enduring concern: local residents, such as those from Tarrytown, often miss out on housing chances.
In addressing his own assertions, Madeo stated that any federally or state-backed housing must remain accessible beyond just immediate local applicants. Reflecting on the community, Mayor Karen Brown countered by remarking, "They’re all residents of Tarrytown now, John."
