Al Amato Of Amato Law Group To Lead Panel On Multifamily Housing In Long Island At Bisnow’s Aug. 16 Event

New York is working to address the state's longstanding housing crisis. When Gov. Kathy Hochul unveiled in February her New York Housing Compact, an initiative to construct 800,000 new homes in the next 10 years, it kicked off a debate about the future of housing policy in the state. While Hochul's proposal was not incorporated in the 2024 budget, discussions around the proposals are ongoing.

While some Long Island officials voiced their support of the housing initiative, other officials and residents expressed concerns, especially over Hochul's vision for local control over zoning. Many other investors, developers and owners are likely wondering what this means for development opportunities on Long Island.

Amato Law Group PLLC, a law firm based in Garden City, New York, helps its clients navigate zoning regulations and the approval processes for new developments. On Aug. 16, Amato Law Group principal Al Amato will moderate a panel at Bisnow’s Long Island State of the Market event titled “Multifamily Outlook: Supply & Demand.” CRE executives on the panel will address the need for adding more multifamily housing to the area and the challenges that come along with it as well as which Long Island neighborhoods may see the greatest benefits.

The event will also cover construction projects currently in progress across Long Island and how the region can make way for the addition of several new assets. Click here to register.

Bisnow sat down with Amato to learn more about multifamily housing in Long Island and how Amato Law Group PLLC helps clients navigate zoning regulations.

Bisnow: What are some of the multifamily trends you’re seeing on Long Island?

Amato: We are still seeing generalized community opposition to municipalities adding housing developments. However, there are certain pockets of bright spots. Some municipalities are actually acknowledging the need for housing within their respective jurisdictions. They're also moving forward with greenlighting multifamily housing projects by specifically adopting legislation to advance such applications within certain zoning districts and approving new developments.

These areas include the town of Oyster Bay, which has adopted a downtown redevelopment district in Hicksville, the towns of Islip and Brookhaven with the Ronkonkoma hub, the town of Riverhead with properties in the downtown area and the town of Hempstead in the Baldwin area.

However, it is worth noting that some of these projects have been in the planning stages with these municipalities for several years. I expect that the developers on the panel will be able to expand on their experiences as well as their expectations with respect to the potential for future continued growth and demand for such projects.

Bisnow: What topics will the Multifamily Outlook: Supply & Demand panel cover?

Amato: The panel will predominantly center around three main topics. The first topic is the supply assessment. We’re researching empirical data, in terms of comparing the percentage of units on the Island that are rental units versus owned housing and comparing that to regional and/or national averages.

The second topic is the source of the demand. We're seeing people in their 20s and 30s who are working and want something more affordable to rent or own and feel a sense of community. We’re also seeing older people who are downsizing and have similar objectives.

The third topic is the barriers to entry. These barriers include the time and cost to complete the zoning and permitting process, the unpredictability of the process, the inflationary costs of construction, as well as community opposition and local political resistance.

Bisnow: What legal considerations should multifamily developers keep in mind during the approval process?

Amato: There are multiple legal considerations for multifamily developers to consider in connection with the approval process. An initial consideration is the zoning for the parcel and the anticipated approval process. Is the parcel currently zoned for multifamily use, or would rezoning be required? If you are looking at and comparing a number of parcels, you would typically select a site that is already zoned appropriately for the desired project.

Another item we would look at are title and/or zoning restrictions. Title restrictions are those in the record regarding covenants and other encumbrances that prohibit or impair the proposed multifamily use. In addition, we review past zoning approvals to determine whether conditions and/or restrictions have been placed on the property that either prohibit or impair a multifamily use.

A third consideration would be the existence of any applicable affordable housing requirements. A zoning jurisdiction, whether it be in a town, village or city, might have its own affordable restrictions. There is also a state law called the Long Island Workforce Housing Act, which permits a developer who seeks to exceed the maximum allowable density to do one of the following: set aside at least 10% of the proposed units for affordable housing, build those units elsewhere or pay a fee in lieu of the units. In exchange, the developer is authorized to increase its overall density to a percentage agreed to with the local municipality.

A fourth consideration is whether there are overlapping or multiple jurisdictional requirements, meaning whether there are any state and/or county requirements in addition to the local ones.

A fifth consideration is whether there are any state and/or local codified energy requirements that may apply to the project.

Finally, a developer should review the environmental aspects of the project such as wetlands, endangered species and environmental remediation, as these items affect timing and costs.

Bisnow: How does Amato Law Group help clients navigate the legal aspects of CRE development?

Amato: We prepare a zoning feasibility assessment at the onset of a project while the client is in the due diligence stage of the contract. The goal is to assess feasibility, risks and the anticipated timeline for approvals. 

Bisnow: What are you looking forward to most about the Long Island State of the Market event?

Amato: I look forward to hearing directly from the developers regarding their view of emerging trends, experiences, development pipelines and other opportunities in the Long Island market.

Learn more about the Long Island State of the Market event and register here.

This article was produced in collaboration between Amato Law Group PLLC and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.