Hempstead IDA closes on deal to preserve affordable housing

January 08, 2019 - Long Island
Park Lake Residences - Hempstead, NY

Hempstead, NY Fred Parola, executive director of the Hempstead Industrial Development Agency has closed on an agreement that will preserve affordable housing for hundreds of village residents.

The IDA’s action, consenting to the sale of Park Lake Residences, an affordable housing complex in the village and the assignment of existing economic benefits to the new owner, closed on Nov. 28. The IDA approved the sale and the transfer of benefits to Park Lake Owner LLC, Jaffe Family TIC LLC and E. Nelson Family TIC LLC, which together are buying the complex for $42 million. The new owners, specialists in owning, managing and improving affordable housing projects, plans to spend $7 million on renovations.  

The 240-unit complex consists of 14 buildings on S. Franklin Street, Martin Luther King Drive, Oakland Street and Doflon Street. Tenants in the complex pay rent equivalent to 30 percent of their respective monthly incomes, under HUD regulations. The owners have said the complex is in need of “a lot of TLC” and physical work. Rents for the residents are not expected to change.

“We are pleased that we can preserve the affordability of apartments in this complex, which has been an affordable place for people to live in the Village of Hempstead for more than 70 years,” said Parola. “Our action allows new owners to continue to provide affordable housing while the new owners re-invigorate the complex,” said Parola.

The IDA granted benefits in 2005 to the former owner, Park Lake Residences LP, an affiliate of Omni New York LLC,  a real estate business associated with former MLB star Mo Vaughn. Those benefits will expire on Dec. 31, 2021. The Agency also granted a new 10-year package of benefits. 

The new owner has promised to undertake new landscaping, repaint all the apartments, which were built in 1940, and replace kitchens and bathrooms when necessary. The renovations could not be accomplished without a property-tax abatement, according to the new owner.

 

 

Comments

Add Comment


More from the New York Real Estate Journal