A New York City-based investment group has acquired a 420-unit affordable apartment building in the Village of Hempstead and plans a multimillion dollar makeover of the mid-rise.
Hudson Valley Property Group plans to spend $23 million to renovate the six-story building at 100 Terrace Ave., built in 1972, and estimates the project will total around $145 million. Hempstead Town records show $107 million of the total cost is for the purchase of the building, formerly owned by Peter Florey, founder of The D&F Development Group in Levittown.
Tenants will be able to remain in their homes throughout the renovation process, which will take approximately two years, HVPG officials said.
“100 Terrace represents a critical component of the area’s affordable housing infrastructure, and we’re committed to ensuring these 420 homes remain safe, accessible, and affordable for working families for generations to come,” Jason Bordainick, co-founder and managing partner at HVPG, said in a news release.
The apartment building has fallen into disrepair in recent years, some stakeholders have said, and federal reports have recorded issues ranging from cockroach infestations to water damage, Newsday has reported. Some tenants in the building also have noted broken elevators and security concerns.
HVPG says it has renewed a federal Section 8 housing contract covering 99% of units in the building, “with affordability protections locked in for an additional 22 years.” Qualified residents earning up to 50% of Long Island’s area median income will contribute up to 30% of their income toward rent, the company said.
Renovations to individual units will include new cabinets and countertops; efficient appliances, faucets and sinks; and upgraded flooring as needed, according to the news release. The building will also get a new roof, improved parking garage, a repaired boiler system and modernized elevators.
Added security measures will include upgraded cameras, access control systems and intercoms, HVPG said.
Security will also include 24-hour on-site personnel, secured garage access, site-specific emergency plans and collaboration with police, said Andy Cavaluzzi, co-founder and partner at HVPG, in an email.
The project will be supported in part by an agreement with the Hempstead Industrial Development Agency awarding the developer up to $503,406 in sales tax exemptions for renovations, records show. The Hempstead Village property is HPVG’s first in Nassau County.
The IDA and HVPG subsidiary, Hempstead Preservation LLC, formalized a lease and project agreement on Dec. 1.
HVPG said in a news release that it would continue existing programming in the building, including an after-school program run by Fayth Vaughn-Shavuo.
But, despite the promised upgrades, some residents are skeptical the change in ownership will improve the quality of life in the building.
“They can do all the renovations they want, the building has no insulation. It’s hollow as hell. The wind blows too hard, you can feel it,” said Shamika Lee, 48, who lives at 100 Terrace and said she’s concerned about the safety of children and other residents in the building.
A HVPG spokesperson said the company is “committed to improving comfort and safety” for residents at 100 Terrace.
“We understand residents’ frustrations and have been engaging directly with them to share our plan for a comprehensive renovation,” the spokesperson said.
Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.