A proposed senior-veterans housing project will receive a tax break from the Town of Montgomery.

The town board, last week, approved a Payment in Lieu of Taxes (PILOT) agreement for an 80-unit housing project planned for an area behind the ShopRite Plaza with access from Hawkins Drive and frontage on Old Neeleytown Road and Goodwill Roads.

“We will not be receiving traditional taxes,” said Council member Kristen Brown, after the resolution of adoption was passed.

The agreement calls for payments of $16,000 per year for 40 years. That amounts to $200 per unit.

Developer Jonah Mandelbaum has a similar agreement in place for a senior development in the Village of Montgomery.

Mandelbaum appeared before the town board in December, to outline his plans for the project on a 3.77-acre parcel. It would include 73 one-bedroom units, six two-bedroom units and a three-bedroom unit that would house a full-caretaker and family. It would have close proximity to Route 208 and Interstate 84 and walking distance to retail and commercial service areas, including Shop Rite and McDonalds.

Mandelbaum said rents would range from $300 to $1,000 per month.

Town officials said 90 recent of the units would go to senior citizens, while the remaining 10 percent would be reserved for Veterans and people with special needs.

All of the PILOT monies would be deposited directly into the Town of Montgomery General Fund. Town board members did briefly discuss the possibility of sharing with other taxing entities including the Valley Central School District, but Deputy Supervisor Ronald Feller reminded the board that no school-age children would be living in the development.

The PILOT resolution passed unanimously, but not everyone at town hall was happy.

“I pay $12,000 a year (in taxes),” said Goodwill Road resident Joan Buck Smith. “Sort of unfair.”