New Rochelle IDA approves 115‑unit deeply affordable senior housing, grants 30‑year PILOT and tax exemptions for 438 Main Street

The New Rochelle Industrial Development Agency on Sept. 24 unanimously approved tax exemptions and a 30‑year payment‑in‑lieu‑of‑taxes (PILOT) agreement to support a proposed 115‑unit deeply affordable senior housing development at 438 Main Street.

The board’s resolution authorizes a sales‑tax exemption, a mortgage‑recording‑tax exemption and a 30‑year PILOT that deviates from the agency’s Uniform Tax Exemption Policy (UTEP) to advance the project proposed by 438 Main Development LLC. The vote passed with no opposition.

The project, as described to the board, would construct a six‑story building containing 115 affordable senior units (including one superintendent unit), commercial space and roughly 80 parking spaces on the long‑vacant site of the former Union Baptist Church. Adam Salgado, commissioner of development and the IDA executive director, introduced the application and presented the public‑hearing process before the board.

Kevin Grama, the IDA’s financial consultant from Grow America, outlined the financing: "the development cost total, dollars 69,000,000," financed through a layered capital structure that includes low‑income housing tax credit equity, funding from New York Homes and Community Renewal, and Westchester County participation. Grama told the board the project would serve households at 30% to 60% of area median income under IRS Section 42 rent restrictions for low‑income housing tax credits.

Grama said the PILOT term is intended to align with the 30‑year affordability restrictions and that, under full taxation, the project would produce negative cash flow. He gave several key figures the board used to weigh the request: an estimated development cost of $69,000,000 (about $600,000 per unit), a projected PILOT starting tax equivalent of about $74,000 with a 2% annual escalator, total public benefits valued at roughly $18,200,000, and estimated public cost savings from the three tax exemptions of about $14,000,000 — yielding a stated net public benefit of about $4,000,000.

Grama also addressed school‑impact testing, noting the project is senior housing and is "not likely to result in any new students," and that, even under a different unit mix, an estimated net increase of about one student would be absorbed by the PILOT.

At the public hearing, Michael Yellin spoke in favor of the project, praising the developer’s outreach to the building trades and urging continued progress on the city’s economic‑opportunity nondiscrimination goals. "Change is incremental and good changes are even more incremental," Yellin said, and he commended the project for its potential to increase local union and apprenticeship opportunities.

Board members and staff emphasized the project’s role in downtown revitalization and in adding senior housing. Several members praised outreach to trades and the project’s partnership structure; one board member said the body has "always been business partners with developers" and noted the high cost of construction as a reason government subsidy is often necessary for affordable housing.

The resolution before the board authorizes the three tax exemptions and the 30‑year PILOT described at the hearing. The finance subcommittee reviewed the application and recommended approval. The board recorded the resolution as passed unanimously.

Project proponents estimated construction would begin in 2026, subject to standard permitting and financing milestones.

Votes at the meeting on this item were unanimous in favor; no board member recorded a vote against, abstention or absence regarding this resolution.

The IDA manager opened and closed the public hearing in accordance with New York General Municipal Law Section 859‑a, subsection 2, with the public hearing notice published in the Journal News on Sept. 12, 2025.

The board meeting then moved on to other items, including two administrative resolutions (see separate item).