Limited Equity Co-op Opens Doors In Melville

Photo/Town of Huntington
Officials mark the opening of affordable, limited-equity development Highland Green in Melville.

By Jano Tantongco
jtantongco@longislandegroup.com

Long Island’s first limited equity co-op opened its doors in Melville last week.

The ribbon was cut last Thursday at Highland Green on Ruland Road, signifying the opening of the 117-unit, $34 million project that emerged from a decade-long tussle, lawsuit and subsequent settlement over ownership rights of a previous concept of development.

The co-op was initially conceived of as an affordable, one-bedroom development, then-called the Sanctuary at Melville, set aside as a tradeoff for allowing then developer Benjamin Development Co. increased density at its over-55 community, The Greens at Half Hollow.

The project was taken over by D&T Development Group after Benjamin failed to get it off the ground.

A lawsuit was filed by the Huntington NAACP against the Town of Huntington over the issue of whether the units should be for-sale or rental.

As a proposed solution, Huntington Supervisor Frank Petrone proposed the concept of a limited equity co-op, reminiscent of the one he owned in the Bronx before buying a house on Long Island. The creation of Highland Green also required securing approval from the state to green light the co-op plan and for the developer to obtain funding from both public and private sources.

Of the 117 units, 72 have one bedroom, 39 have two bedrooms and six have three bedrooms. Ninety-three of these set aside for those whose income does not exceed 60 percent of the area median income. The rest of the 24 units went to those whose income does not exceed 80 percent of the median.

Ten percent of the units were also set aside as preference for certain veterans, 10 for handicapped persons and four percent for the hearing or visually impaired.

Michael McDermott moved into a two-bedroom handicap unit in January. McDermott, a 63-year-old commercial real estate broker, said he “can’t say nice enough things about” living at the co-op.

“It’s really amazing, you can’t find anything for anywhere near this monthly [rate],” McDermott said. “This is really quite extraordinary.”

McDermott, who lost his leg two years ago, pays $1,322 for his unit where he lives with his 12-year-old daughter, Grace.

“I wish we could find a way for the developer to build units like this everywhere, but this is a unique combination of cooperation,” McDermott said. “I’m afraid it’s a one of a kind thing... but very much needed on Long Island.”

Purchasers pay the equivalent of two months’ maintenance as a down-payment, with no mortgage or other type of financing required. Residents build equity since a part of their monthly payments will go towards the reduction of a $10.8 million tax exempt bond used to finance the construction.

Editor's note: Benjamin Development Co. was the original developer of the Highland Green project. 
It was later taken over by D&T Development Group. An earlier version of this story mistakenly stated otherwise.