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    Ithaca Deems $96 Million Asteri Development Unsafe, Orders Residents to Vacate

    edBy edMarch 4, 2026 News No Comments3 Mins Read
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    ITHACA, N.Y. — Just 18 months after its grand opening, the Asteri Ithaca high-rise has been declared an “immediate threat” to resident safety, leading the City of Ithaca to issue a formal “Order to Vacate” for all 181 residential units.

    Ithaca Mayor Robert Cantelmo announced the emergency order during a Common Council meeting on Wednesday evening, citing severe fire safety violations. Fire officials discovered that the 12-story building’s two stairwells, which are required to serve as protected exits under state law, are currently unreliable due to damaged enclosures and numerous broken windows in hallways. While residents were not immediately forced out by police, they were warned that continuing to stay in the building is “at their own risk”.

    The evacuation marks a stunning downfall for a project that was heralded by Governor Kathy Hochul as a landmark achievement when it opened in August 2024. The $96 million mixed-use development was designed to provide much-needed affordable housing, with 40 units specifically set aside for individuals transitioning out of homelessness. The complex also features the Ithaca Downtown Conference Center, a 55,000-square-foot facility meant to anchor the local economy.

    However, the building’s brief history has been marred by crisis. The developer, the Springfield-based Vecino Group, is currently facing two separate lawsuits regarding the property. Tenants have sued the company for allegedly violating the warranty of habitability, citing pest infestations, water leaks, drug paraphernalia, and human waste. Separately, the operators of the conference center—which occupies the first three floors and is not subject to the vacate order—are suing Vecino for $5 million, claiming mismanagement has created hazardous conditions that are driving away business.

    Conditions inside the building have been described by residents as a “nightmare”. One resident reported being bitten by a dog in a common area, while others have consistently complained about poor security and a lack of supportive services. The city previously attempted to address fire risks by instituting a “fire watch” that required regular hall patrols, but officials stated this approach failed to spur the developer to make necessary repairs.

    The Vecino Group, which is involved in several other major projects across the country, expressed its commitment to cooperating with local authorities. A spokesperson stated the company is working with partners to identify temporary housing for the displaced residents.

    The issues in Ithaca reflect a broader pattern of complaints involving the developer’s other holdings. In Houston, homeowners in a Vecino development recently documented poor construction quality, including mold growth, leaking ceilings, and structural gaps. Meanwhile, the company continues to expand elsewhere, recently breaking ground on a $13.5 million project in Springfield, Missouri, and seeking low-interest loans for a 42-unit community in Pittsburg, Kansas.

    In Ithaca, the timeline for repairs remains uncertain. For now, local transit officials have provided TCAT buses to serve as warming shelters for residents while they search for a place to sleep. As one resident put it while standing outside the building Wednesday night: “Almost anything is better than that place”.

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