Catholic Health Services of Long Island is selling the Siena Village low-income senior apartments in Smithtown to a California company.
St. Catherine of Siena Medical Center, which operates the complex, needs to focus on health care, not housing, Catholic Health Services said.
The buyer, GHC Housing Partners of Sherman Oaks, California, plans a $9.2 million makeover, with upgrades to all 298 apartments, including new floors, kitchens and new paint, along with energy-efficient appliances and lighting, officials said.
The company also plans a new computer/business center, a projection screen for movies in the bingo room, and landscaping and exterior improvements. The company also hopes to increase visits from health professionals such as eye doctors and podiatrists, said R.J. Miller, GHC's vice president for acquisitions and development.
GHC Housing Partners operates 18,000 units of low-income housing in 24 states, Miller said. The company hopes to close the sale by the end of June and complete renovations by the end of 2016. The sale price is $62 million. Counting the renovation and other costs, the total project will cost $85.5 million.
All 10 employees at the complex will keep their jobs, and rent will not increase, Miller said. Siena Village's tenants pay 30 percent of their income in rent. The maximum income for a single person at Siena Village is $55,800 and $63,750 for a couple, he said. The rest is paid by the Section 8 program of the U.S. Department of Housing and Urban Development.
"We're long-term owners and preservationists," Miller said. "We have a very long-term vision for this deal."
The complex, with 19 two-story residential buildings and a common-area building on 40 acres off St. Johnland Road, was built in 1979. Catholic Health Services of Long Island acquired the medical center, then called St. John's Episcopal Hospital, and the apartment complex, then known as the Village of St. John, in 2000. Siena Village is the only housing complex owned by Catholic Health Services of Long Island.
"St. Catherine's mission is the delivery of health care rather than administering a housing property," said Paul J. Rowland, the medical center's executive vice president and chief administrative officer, in a statement.
All 298 units at Siena Village are occupied, and the complex has 600 people on its waiting list, Rowland said in the statement.
The Suffolk County Industrial Development Agency voted Thursday to grant $487,313 in sales tax exemptions for the renovation, executive director Anthony Catapano said.