Developer seeks tax breaks to build affordable apartments in North Bellport
An aerial view, looking north, of vacant property along Montauk Highway in North Bellport on Tuesday. Credit: Michael A. Rupolo Sr.
A Levittown-based developer is seeking tax breaks to build a nearly $70 million affordable housing complex in North Bellport.
Peter Florey, who heads D&F Development Group, has requested 30 years of tax breaks and up to about $3.1 million in exemptions from the Brookhaven Industrial Development Agency to build the 96 apartments on Montauk Highway, according to Florey’s application.
The project comes as community leaders look to revitalize Bellport by encouraging new development, and four years after the Town of Brookhaven created a new zoning district in 2022 intended to encourage "civic-oriented" development, according to the zoning codes.
The proposed development — between Atlantic Avenue and Montauk Highway over Doane Avenue — sits squarely within that rezoning, which Florey said was "essential" to D&F’s project. That rezoning allowed developers to build denser housing if the apartments are offered at below-market rents specifically for lower-income Long Islanders, according to the codes.
If completed, rents at the new development will range from $928 per month for a one-bedroom to $3,001 per month for a three-bedroom apartment, according to the IDA application.
Ten of the apartments will remain rent-restricted in perpetuity, while the others will be offered at below-market rents for 50 years, according to the application. And 15 apartments will be set aside for those with developmental disabilities, Florey said.
The Brookhaven Town Board, acting as the planning board, approved the design plans and special permits of the development in July, Newsday reported. But to build the new apartments, Florey said IDA tax breaks were needed.
"We couldn't operate this building with the market taxes and the rents that we have," Florey said.
The developer requested up to about $341,000 in mortgage recording tax exemptions and $2.8 million in sales and use tax exemptions, plus a 30-year tax break agreement, according to the application.
The IDA accepted Florey’s application for tax incentives during its meeting last month, and will hold a public hearing before deciding whether to award the benefits, which has not yet been scheduled.
Although the IDA hasn’t made a decision, the board seemed in favor of the project during its Sept. 23 meeting. Board member Mitchell Pally called the development a "great project."
The development would be mostly funded by public money, including federal and state tax credits, plus loans from New York State Homes and Community Renewal and the state Office for People With Developmental Disabilities, according to the application and Florey.
Florey said he hoped the development, and his other 70-unit affordable apartment complex on Atlantic Avenue, would help to revive the neighborhood.
"In order to revitalize the community, you need housing that's accessible to the folks that live there," Florey said. "With this additional population moving in ... you're going to see a much more vibrant overall community and commercial activity."
The site once held an animal hospital and a handful of small buildings, but the properties fell into disrepair, Florey said.
Brookhaven Town Supervisor Dan Panico and town Councilmember Michael Loguercio praised Florey for the project and his other developments at the July town board meeting.
"This has wide support, as I understand, from those people I speak to in the community," Panico said at the meeting. "A stronger North Bellport is a stronger Brookhaven."
Florey hopes to break ground in November and complete the apartment complex in winter 2028. The property also will have a community center, occupied by a partnership between Shiloh Community Church and Chara’s Kitchen & Catering, according to the application.
