Hempstead IDA gives preliminary approval of incentives for Freeport affordable rental apartments

Hempstead, NY Fred Parola, CEO of the Town of Hempstead Industrial Development Agency (IDA), has given preliminary approval to a package of economic incentives that will be used by a Westchester developer to construct a 31-unit building of affordable rental apartments in Freeport.

The Hempstead IDA approved the incentives for Regan Development Corp. at its meeting on Mar. 24. The incentives package is subject to a public hearing, further IDA review and a final authorizing resolution.

Regan, of Ardsley, plans to construct a 39,7870 s/f building at 206 Smith St., Freeport, with 48 on-site parking spaces. The 0.75-acre site currently is owned by a non-denominational organization that pays no property taxes. 

The building would contain one studio apartment, 28 one-bedroom units two two-bedroom apartments. Ten units are to be reserved for individuals in need of supportive services, which will be provided by Options for Community Living. The developer has approvals for the project.

The $16.5 million project is expected to create 60 construction industry jobs and one part-time permanent job. The property is expected to produce $101,000 in annual property taxes upon completion of a proposed 30-year PILOT agreement. PILOT payments would start at $37,352 during the initial three years of the PILOT and average $56,434 annually.

The project is in line to receive $5 million in financial aid from the state. 

The family-run developer has constructed more than $384 million worth of residential and commercial real estate and affordable housing developments throughout the tri-state area over the past 25 years. The proposed Freeport project would be its first on Long Island.

“There’s a tremendous need for affordable housing in both Freeport and the Town of Hempstead,” Parola said.

The IDA’s assistance to rental housing is a legitimate IDA function, according to ruling by the State Comptroller and the courts, because the projects promote employment opportunities and serves to combat economic deterioration in an area served by the IDA.