Developer plans 31-unit affordable housing complex for Smith Street

I applaud efforts toward affordable housing.”

John Hrvatin executive director, Freeport Housing Authority

A standard economic benefits package

Features typical of an Industrial Development Agency benefits package:

• Available to certain manufacturing, commercial, industrial, assisted living, and recreational facilities. Straight retail businesses — like clothing stores or doctor’s offices — do not receive these benefits.

• Designed to encourage development that would support the economy and the residents of the town.

• Reduced property tax plan known as a PILOT — payment in lieu of taxes, an agreement to allow the developer to pay a fraction of normal property taxes.

• Exemption from sales and use taxes on the purchase of construction materials, supplies, fixtures, furniture and equipment, as long as these items apply only to the project.

• Exemption from mortgage and recording taxes.

For more information specific to 206 Smith St., visit tinyurl.com/ReganDevelop.

An empty, grassy lot on the north side of Smith Street could soon become an affordable-housing apartment building.

Developers from Westchester County have received preliminary approval for economic incentives through the Town of Hempstead Industrial Development Agency that could allow them to start building at 206 Smith St., between Long Beach and South Ocean avenues.

Regan Development’s specialty is affordable housing, according to IDA spokesman Alan Wax.

“Usually a new apartment building will have 10 percent affordable housing,” he said. “This one will have 100 percent affordable housing.”

What exactly rents would be in such a project still isn’t known, but the IDA will schedule a public meeting in the near future. It already gave the project an initial greenlight during a meeting last month that included Freeport mayor Robert Kennedy and Village assessor Vilma Lancaster. 

Regan has already completed a feasibility study, as well as an economic and fiscal impact analyses. According to the company’s own data, the apartment building would not impact the environment enough to trigger further review under state law.

If approved by local officials, the grass-covered lot will be replaced by a two-story building with 31 apartments and 48 parking spaces. The land itself is currently tax-exempt because it is owned by the Church of Jesus Christ of Latter-day Saints. The organization will lease the land to Regan, the rented apartments will be subject to the payment in lieu of taxes program, better known as PILOT.

PILOT agreements allow select corporations and groups to get property tax discounts in return for bringing a desired development into the community. Yet, some have expressed concern for incentive programs like this, since it doesn’t include private residential property owners, straight retail businesses, or any mixed-use development that devotes more than 30 percent of its space to retail. 

Fred Parola, the IDA’s chief executive, said lenders demand developers obtain economic benefits packages for new projects — especially for affordable housing buildings, which don’t generate the same income as market-rate apartments. 

“This is a workforce and affordable housing project, which means that it is very attractive to folks that are on the lower end of the income scale,” Parola said. The apartments offer an option for “folks that might be living in somebody’s basement illegally, or crunched into a multi-family situation.” 

John Hrvatin, executive director of the Freeport Housing Authority, says he’s seen an exodus from Long Island by two main contingents: senior citizens on fixed incomes, and young adults entering the workforce. 

“We have some of the highest taxes in the country here in the Long Island region,” Hrvatin said. “We pay some of the highest utility rates. Our seniors, our young people … they can’t afford to live on Long Island. They are moving to affordable states and affordable communities,” taking their tax dollars and their consumer dollars with them. 

A building such as the one projected for Smith Street would benefit seniors and younger adults for another reason, Parola said: It is near public transportation, grocery and retail stores, and necessary services such as trash collection and street cleaning.

“Remember,” Parola said, Freeport “is an incorporated area, which means that unlike some of our unincorporated areas, everything’s a walk away. Whether it’s getting food or going to the supermarket, or getting a fast food dinner, or your cleaning, or whatever. Lynbrook or Valley Stream or Hempstead Village or Freeport — they’re quasi-urban more than they are rural or suburban.” 

On top of that, a “lot of seniors don’t drive,” Hrvatin said, so they need mass transit. As do those looking for workforce housing. Employees in essential businesses like auto repair, food, landscaping or hospitals — even nurses or police officers just starting their careers — also would benefit from below-market-rate housing located close to needed services, especially if they don’t own a car.

There isn’t expected to be much resistance to the plan, officials believe, especially since the lot is surrounded by similar buildings. And there can’t be enough of projects like this, Hrvatin added.

“I applaud efforts toward affordable housing,” he said. “I wish them the best of luck with their affordable deal, and anything the Freeport Housing Authority can do to help them achieve success, I will