Ontario County housing crisis hits a wall: Utility costs stall more than 1,000 homes

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Ontario County officials are sounding the alarm over what they call a “critical and avoidable” threat to solving the region’s worsening housing crisis: unexpected, multimillion-dollar energy infrastructure costs imposed by utilities at the final hour of project development.

In a strongly worded statement released July 31, the Ontario County Housing Ad Hoc Committee warned that more than 1,000 urgently needed housing units are currently stalled — not because of community opposition or lack of developer interest, but because of sudden utility costs that make projects financially unworkable.

The issue, county leaders say, threatens to derail the progress Ontario County has made over the past two years as a certified “Pro-Housing Community.” The designation helped municipalities like Victor, Farmington, Geneva, and Canandaigua secure over $17 million in economic development grants in the past year alone.

“Despite community buy-in and progress, we face a stark reality,” the release states. “Significant housing projects remain stalled… because of unforeseen, multimillion-dollar infrastructure hurdles imposed at the last possible moment by energy utilities.”

High stakes for major developments

A prime example is the Uptown Landing project in Canandaigua — a mixed-use development that includes more than 600 residential units. After years of planning, community engagement, and approval by local boards, developers were blindsided by a surprise utility cost of $10 to $15 million to reroute existing electric infrastructure. The cost, which wasn’t disclosed until the final planning stages, adds tens of thousands of dollars per unit — costs that would ultimately be passed on to future homeowners.

A similar project in neighboring Farmington was hit with a $4 million utility bill under nearly identical circumstances, county officials said. In both cases, the charges did not add new capacity or improve the grid — they merely covered the cost of relocating or adjusting existing service.

Economic and social impact

The consequences are severe. Ontario County’s 2023 Housing Needs Assessment identified the need for 1,500 new units by 2025, and an additional 1,000 by 2030. These units are essential to keeping up with demand, attracting new businesses, and supporting a workforce already burdened by high housing costs.

Currently, 43.2% of renters in Ontario County spend more than 30% of their income on housing — a commonly used threshold for affordability. Meanwhile, 23% of households fall below the county’s “survival budget” level. The aging population also requires more senior-friendly housing, which the county says is now at risk of not being built in time to meet demographic shifts.

“Without proactive solutions, we risk economic and social stagnation,” the committee said. “We are jeopardizing the very quality of life that makes Ontario County attractive.”

Call for accountability and transparency

The county is placing much of the blame on energy providers like NYSEG and RG&E, accusing them of withholding critical information during early planning stages. Developers have reportedly spent millions getting projects to the finish line, only to be hit with massive utility fees that were never previously disclosed.

“Developers, municipalities, and taxpayers deserve more than a simple ‘feasible’ or ‘not feasible’ assessment,” the release continues. “We need clear, upfront communication regarding infrastructure capacity and associated costs.”

The committee is now 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.

What’s next

Ontario County has committed to continuing its outreach efforts and policy advocacy through its Housing Ad Hoc Committee, established in 2024 following the county’s initial Housing Needs Assessment. The committee says its top priority is ensuring that energy infrastructure policy doesn’t sabotage the region’s pro-housing momentum.

“Ontario County has made enormous strides,” the statement concludes. “Yet, without immediate and coordinated action addressing energy infrastructure transparency and affordability, this momentum is at risk.”



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