Developer Scores IDA Tax Incentives For $15M Apartment Building

HEMPSTEAD, NY. — The Town of Hempstead’s Industrial Development Agency granted preliminary approval to developers for a set of tax incentives on construction at 160 Marvin Ave. last week, clearing another step for construction of 36 apartments atop a Hempstead village American Legion parking lot.

IDA CEO Fred Parola said the developers, whose principals are listed as Aisha Hussain and Ran Nizam, gained preliminary approval for a 20-year Payment In Lieu Of Taxes (PILOT) agreement, allowing them to pay a negotiated amount over the life of the agreement instead of the annual tax levied on the property.

The IDA also granted preliminary approval for a sales tax exemption for materials not already covered by other exemptions, and a mortgage recording tax exemption for the three-story development. The basic State mortgage recording tax charges 50 cents for every $100 of mortgage debt or obligation.

The project will still require public hearing, scheduled for Nov. 6, and final approval by resolution, scheduled for vote on Nov. 18. Representatives from American Legion Post 390 and Friends of Post 390 did not immediately respond to requests for comment.

The development will set aside 10 percent of its units for affordable housing, with an additional 10 percent designated as workforce housing. Affordable housing is reserved for residents making at or below 80 percent of an area’s median income, while workforce housing is reserved for residents making at or below 120 percent of the median income. The development will cover just over 36,000 square feet and feature ground-level parking. 16 of the units will be two-bedroom units, while the remaining 20 will feature single bedrooms.

“Housing is one of our greatest problems, and IDAs are stepping up to fill that gap,” Parola said Wednesday morning. “The benefits make the projects attractive to developers, so instead of perhaps building office buildings, we’ve seen a great deal of housing.”

Parola added in a news release that, ““We’re pleased to move this project forward as part of the revitalization of Hempstead,” adding that the completed project, “will provide much-needed affordable rental housing for residents of the Village and the Town and bring in additional revenues for taxing jurisdictions.”

In a news release, the IDA also announced that the developers had applied for benefits for another project adjacent to the 160 Marvin Ave. site, which would feature 96 apartments. In a conversation Wednesday, Parola said he believed that project would be reviewed for the same set of benefits granted to 160 Marvin Ave.