Assemblyman Fred W. Thiele, Jr. (I, D, WF, REF - Sag Harbor) has introduced legislation that would authorize the Towns of East Hampton, Riverhead, Shelter Island, Southampton, and Southold to establish a Town Community Housing Fund. The state legislation is an authorization. The decision to create such a fund would be a home rule decision by the town boards, subject to a mandatory referendum.

The legislation is the result of a 12 month effort by Thiele to meet with local housing stakeholders to develop the best possible legislation. A study bill was introduced in 2018. The legislation introduced this week reflects numerous meetings and comments Thiele had over the last year. Thiele stated, “The legislation I have introduced for 2019 is substantially better and more comprehensive because of the input of local government, the real estate industry, housing advocates, and civic leaders across the East End. While I expect further refinements as we move through the legislative process, the bill I introduce today is a thoughtful and well-crafted proposal.”

Under the proposed legislation, the Community Housing Fund could be used to (a) provide financial assistance to first-time homebuyers not to exceed 50% of the purchase price, (b) the production of community housing for sale, (c) the production of community housing for rent, (d) rehabilitation of existing buildings for community housing, (e) housing counseling, and (f) education impact payments to local school districts.

Towns would have to adopt a Community Housing Plan before the fund could be implemented. That plan would have to include a Regional Housing Strategy agreed upon by all 5 East End Towns. At least 20% of the funds would be required to be utilized for this regional housing strategy. Each Town would also be required to appoint a Community Housing Advisory Board to advise the Town Board on the creation and implementation of the Community Housing Plan.

Town Community Housing Funds would be financed by a ½% addition to the existing 2% real estate transfer tax that funds the Community Preservation Fund. In addition, the legislation would increase the exemption on the transfer tax for improved property from $250,000 to $350,000 in the Towns of East Hampton, Southampton, and Shelter Island to provide more relief to affordable housing purchasers. The exemption would increase from $150,000 to $250,000 in Southold and Riverhead. The exemption would only apply to transfers of $2 million or less.

Based on 2017 revenues, the proposal would generate $22.7 million for Community Housing across the 5 East End Towns. At least 20% or about $4.5 million would be utilized for regional housing initiatives. Income eligibility for Community Housing would be $140,040 for a one or two person household. The purchase price limit would be $938,649 for a one family home. These numbers are based upon SONYMA eligibility low interest loan requirements for Suffolk County.

Thiele stated, “The lack of affordable housing has reached crisis proportions. Local employers have difficulty hiring and retaining employees because of housing costs and availability. Local volunteer emergency services are experiencing difficulty in recruitment and retention. Long-time residents are forced to leave the area. Traffic congestion is intensified by the importation of labor from areas with lower housing costs. There is no one solution to this problem. However, this legislation will provide Towns with a meaningful tool that can make a difference by providing housing opportunities for its residents at a much greater rate than they can with existing resources and programs. Ultimately, it will be the voters who will get to decide.”

The legislation will go to the Assembly Local Governments Committee for consideration, which Thiele chairs.