With more than 1,000 properties transferred each year in Southampton, town officials are looking into requiring an updated certificate of occupancy with each sale in order to prevent legal disputes in the future.
A certificate of occupancy, or CO—a document issued by the town’s building and zoning division—certifies that a building or residential home is compliant with building codes and other laws, which indicates that it is suitable for occupancy.
According to Assistant Town Attorney Katie Garvin, the proposed town code amendment would require an updated CO with each property change of ownership—a requirement already in place in Sag Harbor, Southampton and East Hampton villages. If adopted, the requirement could amount to an additional $200,000 in revenue annually for the town.
Currently, the town does not require updated COs when property titles are transferred, which Chief Building Inspector Michael Benincasa said causes a burden later on for buyers who are unaware their newly acquired property is in violation of building code.
“It’s a buyer protection plan,” Mr. Benincasa said at a recent Town Board meeting regarding the proposal. “For $250, you get pretty much an iron-clad guarantee that that property is free of problems.”
According to Mr. Benincasa, from October 2015 to October 2016, there were 1,003 transfers of improved residential and commercial properties in the township, but only 242 updated COs—leaving the legality of 761 properties uncertain just in that time frame. Mr. Benincasa noted that he felt his current staffing levels could accommodate the additional burden on his division, but, if needed, additional revenues from the requirement could help fund extra staff.
“I’m a property rights guy, so I’m conflicted a little bit—but looking at the pros and the cons, I think the pros outweighs the cons, because it protects the people who are buying a home from a sometimes burdensome expense,” Mr. Benincasa said.
Town Board members raised concerns over the proposal earlier this month, noting it could cause unnecessary complications for inherited properties or for property owners who could not afford to do any required changes to legalize their property—for instance if there was illegal clearing done in the past where a pool or structure currently sits.
Southampton Town Supervisor Jay Schneiderman suggested, if the change in the town code were to be approved, including a fee waiver for financial hardships, or requiring an update only if the CO was older than two years old could be included.
A public hearing on the proposed code change is scheduled for the Town Board’s February 14 meeting at 1 p.m. in Southampton Town Hall.
on Jan 27, 2017