Can New York Fix Its Housing Crisis? It Depends on the Suburbs

Scarsdale, N.Y., a village about 20 miles north of New York City known for Tudor-style architecture and large, lavish estates, may seem like an unusual setting for an aging, five-story parking garage that neighbors have described as “an eye sore,” “decrepit,” “unsafe” and “seedy.”

But for over 40 years the site has survived multiple attempts to raze and redevelop it. The latest push, in which the village is considering plans to build hundreds of apartments there, including some that would have been affordable to people with lower incomes, has been in limbo for three years after...