East End Voters To Decide On Peconic Community Housing Fund Referendum

SUFFOLK COUNTY, NY — Residents who head to the polls this year will have chance to weigh in on a new proposition that could open the doors for new affordable housing opportunities across East End towns.

Suffolk ballot proposition #3 centers on the proposed Peconic Bay Region Community Housing Fund. Sponsored by New York State Assemblyman Fred Thiele and New York State Senator Anthony Palumo, the Peconic Bay Region Community Housing Act would allow each of the five East End towns to create a dedicated Community Housing Fund to assist with affordable housing initiatives.

"The lack of affordable housing on the East End has reached crisis proportions," Thiele said. "The pandemic has only made it worse. It affects nearly every aspect of the community. Small businesses, schools, health care, emergency services are all negatively impacted. Teachers, nurses, firefighters, and ambulance volunteers all need housing."

He added: "The current model to provide housing by increasing density is a failure. The Community Housing Fund will provide a new tool by generating more than $20 million a year to assist first-time homebuyers and increase the inventory of affordable housing. It is essential to maintaining a balanced community where local families will a choice to stay on the East End."

Riverhead is the only one of the five East End towns to opt out of the referendum, just for this year, said Riverhead Town Supervisor Yvette Aguiar. She said the town is focused on a system to help first-time homebuyers.

According to those who crafted the legislation, the primary source of funding for the Community Housing Fund would be from revenues derived from a 0.5 percent real estate transfer fee paid by the purchaser — not the seller — similar to the current Community Preservation Fund transfer fee that helps to subsidize open space preservation and water quality protection programs.

The Community Housing Fund would not be financed from property taxes — and all revenues received by a town from the repayment of a Community Housing Fund loan would be deposited back into the fund.

The fund would help families seeking affordable housing on the East End and could be used for financial assistance to first-time homebuyers as a grant or loan; acquisition of existing units for community housing (sale or rental); production of community housing for sale; production and maintenance of community housing for rent; creation and maintenance of community housing through public/private partnerships; provision of housing counseling services; and rehabilitation of existing buildings and structures for conversion to community housing for sale or rental.

All community housing created by the fund will remain affordable in perpetuity by legally binding covenants and restrictions, officials said.

Certain exemptions will be afforded from paying the real estate transfer fee, an exemption will be raised by $200,000 to $450,000 in Southampton, East Hampton and Shelter Island and raised by $100,000 to $250,000 in Southold; also certain first-time homebuyers (depending on their household income and the purchase price of the property) are exempt from paying the transfer fee.

The creation of the fund would be enacted by a local law following the voters’ approval in a mandatory referendum that will appear on the November 8 ballot. If the referendum passes, then the town boards in each town would need to adopt a town housing plan before expending any funds.

"

Michael Daly, founder of East End YIMBY (Yes, In My Backyard) applauded the proposed fund.

"We have the opportunity to improve the model for how we do affordable community housing in the towns of Southampton, East Hampton, Shelter Island and Southold on November 8," he said. "A vote 'yes' on Proposition Three for the Community Housing Fund will allow towns to collect funds on real estate sales, without raising taxes for local residents, that can be used to support housing for local first responders, healthcare workers, teachers and those who live and work in our towns. Local funding. Local housing. Local people."

The East End Housing Fund Act was signed into law by Gov. Kathy Hochul in the fall of 2021.

Daly explained that each town will form a Community Housing Fund Advisory Committee, made up of local residents, which will recommend ways to most effectively use the funds to benefit local residents. Low-cost loans, shared equity purchases, home rehabilitation, and rentals for essential workers are just a few of the ways that each town will be able to design its plan to use the funds, he said.

"But, we must create the fund first. Assisting local residents and workers in many small ways can help preserve the jobs that protect our infrastructure and maintain the character of our communities," Daly said. "So, vote 'yes' for teachers. Vote 'yes' for volunteer firefighters. Vote 'yes' for EMTs. Vote 'yes' for healthcare workers. Vote 'yes' for young people who grew up here and now want to live and work in their hometowns. Vote 'yes' for community housing," Daly said.

East End lawmakers also supported the measure: "I am personally supporting the housing referendum to give the town the financial means to help create viable pathways for housing our nurses and teachers and other people needed to sustain our communities," said Southampton Town Supervisor Jay Schneiderman.

And, said Southold Town Supervisor Scott Russell: "We are working on developing a housing plan and were hoping to have it complete prior to the vote on Election Day. Although that is not likely, we decided to place the referendum on the ballot given the potential for housing fund income should it pass. Whether the referendum passes or not, we need to have an affordable housing plan to help achieve our long-term goals. If it does not pass, we can always offer it up in the future after a plan is adopted."