New co-op structure for Matinecock Court presented to community; needs town board approval

It’s been in the works for 40 years, delayed and litigated and finally approved, and now, “in the 11th hour,” as one community member put it, a new developer for Matinecock Court is proposing a change in legal structure – to a community cooperative.

The affordable housing development, slated for the corner of Pulaski and Elwood Road, was originally approved as a mix of 70 rental units and 76 condominiums, affordable to household incomes between $47,000 and $95,000. On May 25, developer Peter Florey of D&F Development Group proposed that all units be merged into one residential cooperative.

A groundbreaking is scheduled for June 22. To go forward with the new plan, Town of Huntington (TOH) council members will have to authorize Supervisor Chad Lupinacci to amend the agreement to include the proposed changes.

The (quick) history of Matinecock Court

Matinecock Court is a 146-unit affordable housing development to be built at the corner of Elwood Road and Pulaski Road in East Northport. It’s been in the works for 40 years, and if this final stretch goes according to plan, construction is expected to begin in June 2022 and should take approximately two years to complete.

Details of the gated community include 17 two-story buildings housing 18 one-bedrooms, 89 two-bedrooms and 38 three-bedrooms (plus one 2-bedroom unit for the superintendent). Eight units are slated for residents with developmental disabilities. The development, on a 14.5 acre parcel of land, will also include a clubhouse, parking, and a sewage treatment plant.

First proposed in 1978, the development has faced intense scrutiny from the community since its inception, and faced several legal battles, including in 1981, when the Huntington branch of the NAACP sued the town over violations of the federal Fair Housing Act. That case made it to the Supreme Court.

A “Stop Matinecock Court” Facebook page was created in July 2010 and has posted news about the site sporadically over the past ten years. Despite efforts to shut down the development, the project was officially approved by the Town of Huntington Planning Board in December 2012.

This past May, a new developer, Peter Florey of D&F Development Group, announced revisions to the project, including the change from the rental/condominiums structure to a residential cooperative. With site approval and zoning already in place, this is the final hurdle before ground breaks – and while some groups are convinced that the 100-percent cooperative structure is beneficial for community members, others argue it’s an overcomplicated rental agreement and nothing more.

So what is a residential cooperative?

At the June 7 virtual meeting with Florey to address community questions and concerns regarding the new proposed structure, it was explained that the “community co-op” plan would allow people to become shareholders rather than tenants. Residents would be responsible for a “down payment” that’s equal to their monthly payment, which is to include the mortgage, taxes and maintenance fees, explained Florey. They will also benefit from annual surpluses and increase equity over time.

According to Florey, affordability levels and monthly charges, which will range from $1,300 to $1,900 per month depending on the unit, will remain the same under this co-op structure. The unit sizes will not change and the quality of construction will be the same as initially proposed and approved by the town.

Community concerns and support

When asked about the town’s support of this new structure, Lauren Lembo, the Public Information Officer for the TOH told the Journal, “The new developer is seeking changes to the Consent Decree that are currently under review by the Town. Our main concerns with the proposal include the preservation of our tax base, the ability to grow equity in the ownership units, and preserving quality of life for all residents. Any changes to the agreement would need town board approval.”

This touches on a major concern voiced by residents during this week’s meeting, which was whether or not the cooperative structure is really just an over-complicated rental agreement. Margaret Fanelli-Granger voiced her disapproval for a community co-op and asked, “Why, at the 11th hour, is there this very big change?” Margaret said that although she’s confident the development will be beautiful and done well, the concern is that this last minute change may benefit the developer and not necessarily the community.

Florey disagreed, explaining that his concern is the mix of rental units that are controlled by a landlord and 70 condominium units that are owned. The other reason behind the structure shift is the need to keep units affordable forever, not just for the first round of sales. In the 50% condo structure, the cost of the unit would have to remain the same, even when interest rates fluctuate. This may cause the condo owner to have to reduce his or her price in order to offset an interest rate increase.

Northport resident Geoff Moses asked how much equity a shareholder will earn after living in a unit for three years. Florey explained that the equity would be around $1,000 to $2,000, as it would start low, but grow over time. After five to ten years, equity would be in the $5,000 range, according to Florey. Equity recipients can use the money any way they choose, including to purchase a new home.

This may not seem like much to the average homeowner, but Lee Silberman, CEO and Executive Director of Habitat for Humanity of Suffolk County supports the development and stated at the meeting, “The fact that these co-op owners will gain equity over time is an opportunity that they’d never have.”

Silberman explained that there is an affordable housing crisis on Long Island. In New York, there is a statewide shortage of over 600,000 affordable homes and it is estimated that in Huntington alone, the shortage is over 2,000 units. For Silberman, Matinecock Court is long overdue. “The Supreme Court ruled in the early ’80s in favor of this development and it is shameful that after 40 years, ground has yet to be broken,” he said. “Habitat for Humanity of Suffolk looks forward to supporting D&F Development Group in any way it can to facilitate this project.”

Another concern that was voiced at the meeting was whether or not TOH residents would be given priority during the lottery process. Giving Huntington residents better access to affordable housing is a legal issue and the process would have to abide by federal and state laws. The Huntington Community Development Agency has the power to allow for resident preference if they believe that it’s legal.

“I understand that you can’t give preference, but we don’t want to start attracting people from anywhere in New York State,” said Margaret Fanelli-Granger at the June 7 meeting. “It’s here [in East Northport] because we want to benefit the people of our community, not people living ten counties away.”

Community members also voiced concern about the possibility of an increase of Northport-East Northport district students from this development. With two elementary schools being closed because of low enrollment, how would Matinecock Court impact this new reality? Florey said he anticipates a low enrollment based on the numbers from Highland Green, a similar development with 117 units in Melville, which currently has 20 students living in the development, including a number of students who were already enrolled in neighborhood schools.

The number of students moving into the units would not be affected if the development was a rental/condo or a co-op structure and that is the only issue left on the table for approval at this point, said Florey. The developers have indicated that if this new structure is not approved, they plan to proceed with the current 50/50 structure next June.

If you have questions or concerns regarding the development and legal structure, you can email the Matinecock Court board at MCBoard@housinghelpinc.org or find their information page here: https://www.housinghelpinc.org/PDFs/Matinecock-Court_210525_Community-Meeting.pdf