Suffolk IDA approves $6.5M in tax breaks to Commack housing project for people 55 and older
Artist's rendering of a proposed three-story apartment building on Jericho Turnpike in Commack for those 55 and older. Credit: Beatty Harvey Coco Architects. LLP
The Suffolk County Industrial Development Agency granted $6.5 million in tax breaks over 15 years to a Woodbury-based developer to build the second phase of a 55-and-older rental community in Commack.
The board approved the tax break 6-0 on Thursday for developer Paul Posillico to construct Fieldstone at Commack II, a $41 million community with 98 apartments at 1110, 1098 and 1120 Jericho Tpke.
The aid package includes a property tax abatement of $4.9 million over 15 years, a $244,000 mortgage-recording tax exemption and a $1.392 million sales tax exemption on construction materials and furnishings. The developer would pay $5.8 million in taxes over the course of 15 years.
Peter Curry, the attorney for Posillico, said his client would now work to finalize his financing and close on purchasing the 4.96-acre property.
“I don’t know that he has chosen a general contractor yet. Once that happens he would then go ahead and start building,” Curry said, which would likely be this summer.
A 111,223-square-foot, three-story building will replace five buildings on the site. The building will have 42 one-bedroom and 56 two-bedroom apartments. Twelve of the units will be affordable, four of which will be leased to veterans and persons with disabilities. The development will include a community center and provide two permanent full-time jobs, according to the IDA application.
An IDA policy offers “enhanced” benefits to developers in exchange for creating affordable rental housing, as well as designating units for veterans and those with physical and intellectual disabilities. Enhanced benefits include longer terms for tax abatements or larger tax reductions in the early years of a project.
The IDA has a practice to award benefits to projects that set aside 10% of units at reduced rates for people earning less than 80% of area median income, IDA officials said. That equals $102,000 annually for a family of four on Long Island in 2023, according to the U.S. Department of Housing and Urban Development.
Because Posillico increased the number of affordable units in the building by 2% and designated four of the 12 affordable units for veterans and persons with disabilities, he was eligible for enhanced benefits, IDA officials said. The developer saved an additional $881,934 over the course of the abatement by using the policy.
In 2019, a company owned by Posillico built Fieldstone I, a 98-unit, 55-and-over rental community. That project received $4.5 million in IDA tax breaks over 15 years. The proposed building will share an entry road and sewage treatment plant with the existing rental complex.
The Suffolk County Industrial Development Agency granted $6.5 million in tax breaks over 15 years to a Woodbury-based developer to build the second phase of a 55-and-older rental community in Commack.
The board approved the tax break 6-0 on Thursday for developer Paul Posillico to construct Fieldstone at Commack II, a $41 million community with 98 apartments at 1110, 1098 and 1120 Jericho Tpke.
The aid package includes a property tax abatement of $4.9 million over 15 years, a $244,000 mortgage-recording tax exemption and a $1.392 million sales tax exemption on construction materials and furnishings. The developer would pay $5.8 million in taxes over the course of 15 years.
Peter Curry, the attorney for Posillico, said his client would now work to finalize his financing and close on purchasing the 4.96-acre property.
“I don’t know that he has chosen a general contractor yet. Once that happens he would then go ahead and start building,” Curry said, which would likely be this summer.
A 111,223-square-foot, three-story building will replace five buildings on the site. The building will have 42 one-bedroom and 56 two-bedroom apartments. Twelve of the units will be affordable, four of which will be leased to veterans and persons with disabilities. The development will include a community center and provide two permanent full-time jobs, according to the IDA application.
An IDA policy offers “enhanced” benefits to developers in exchange for creating affordable rental housing, as well as designating units for veterans and those with physical and intellectual disabilities. Enhanced benefits include longer terms for tax abatements or larger tax reductions in the early years of a project.
The IDA has a practice to award benefits to projects that set aside 10% of units at reduced rates for people earning less than 80% of area median income, IDA officials said. That equals $102,000 annually for a family of four on Long Island in 2023, according to the U.S. Department of Housing and Urban Development.
Because Posillico increased the number of affordable units in the building by 2% and designated four of the 12 affordable units for veterans and persons with disabilities, he was eligible for enhanced benefits, IDA officials said. The developer saved an additional $881,934 over the course of the abatement by using the policy.
In 2019, a company owned by Posillico built Fieldstone I, a 98-unit, 55-and-over rental community. That project received $4.5 million in IDA tax breaks over 15 years. The proposed building will share an entry road and sewage treatment plant with the existing rental complex.
Navigating politics over Thanksgiving and where to get holiday pies. Here's a look at some of the exclusive stories you may have missed this week on NewsdayTV.
Navigating politics over Thanksgiving and where to get holiday pies. Here's a look at some of the exclusive stories you may have missed this week on NewsdayTV.
