The Hardscrabble Apartments in Farmingdale will be sold and renovated, and property tax breaks granted by the Nassau County Industrial Development Agencywill allow the units to keep their affordable rent status.
K&R, a for-profit developer and prospective owner of the property, had sought a sales-tax exemption of up to $115,130 on the purchase of construction materials and equipment, up to $155,800 off the mortgage-recording tax, in addition to its 20 years of property tax savings, which require the developer to pay roughly 7% of its gross income from rent as a payment in lieu of taxes in the first year.
That percentage will then increase slightly each year for the next 19 years.
The payment in lieu of taxes will be less than the full taxable amount but more than what was collected from the property in taxes prior to the 2024 sale of the apartment units by the Farmingdale Housing Development Fund. The nonprofit organization is tax-exempt and sold the Hardscrabble Apartments for roughly $27 million, according to published reports.
The 80-unit complex at 400 Main St. in Farmingdale was developed in the 1980s to provide low-income housing for seniors.
The 2024 sale will become official once it has been approved by the state Attorney General’s Office and the federal Department of Housing and Urban Development.
The Nassau County IDA held a public hearing at the Farmingdale Village Hall on Tuesday, Oct. 21, to go over the K&R’s proposal.
Brian Raddock, the co-founder of K&R, thanked the IDA for “supporting us in this project and our ability to help provide affordable housing,” during the hearing.
No members of the public spoke during the public hearing.
On October 30, Raddock spoke before the IDA board, stating that his company would undertake renovations to the property.
“We are going to rehab the facility,” he said. “New kitchens, bathrooms, site work and extending the affordability at Hardscrabble for the next 20 years.”
The board unanimously approved the tax breaks to close out the meeting.
