Local Lawmakers Respond to Hochul’s Housing Proposal - 27 East

Real Estate News

Real Estate News / 2073000

Local Lawmakers Respond to Hochul’s Housing Proposal

icon 6 Photos
Governor Kathy Hochul delivers her 2023 State of the State address in the Assembly Chamber at the State Capitol.   MIKE GROLL/OFFICE OF GOVERNOR KATHY HOCHUL

Governor Kathy Hochul delivers her 2023 State of the State address in the Assembly Chamber at the State Capitol. MIKE GROLL/OFFICE OF GOVERNOR KATHY HOCHUL

East Hampton Town Supervisor Peter Van Scoyoc.   DANA SHAW

East Hampton Town Supervisor Peter Van Scoyoc. DANA SHAW

Southampton Town Supervisor Jay Schneiderman.  DANA SHAW

Southampton Town Supervisor Jay Schneiderman. DANA SHAW

New York State Assemblyman Fred W. Thiele Jr.  LORI HAWKINS

New York State Assemblyman Fred W. Thiele Jr. LORI HAWKINS

Westhampton Beach Village Mayor Maria Moore.  DANA SHAW

Westhampton Beach Village Mayor Maria Moore. DANA SHAW

Governor Kathy Hochul in the Assembly Chamber on January 10 to deliver her State of the State address.  DON POLLARD/OFFICE OF GOVERNOR KATHY HOCHUL

Governor Kathy Hochul in the Assembly Chamber on January 10 to deliver her State of the State address. DON POLLARD/OFFICE OF GOVERNOR KATHY HOCHUL

authorMichelle Trauring on Jan 25, 2023

Some local lawmakers may agree that the East End will not build itself out of its affordable housing crisis, but in her State of the State address earlier this month, Governor Kathy Hochul suggested that building is exactly where the solution starts.

From inside the New York State Assembly Chamber, Hochul announced on January 10 a multipronged approach to combat the growing crisis. She proposed a trajectory that will lead to 800,000 new homes built over the next decade and the creation of the New York Housing Compact, a strategy that will include local participation requirements and incentives to fan housing growth.

But the road to get there remains unclear, as its proposed methodology — including a mandatory 3 percent expansion of housing stock every three years, removal of limitations on residential density, environmental review expedition, updating zoning laws, and more — continues to raise questions and, in some municipalities, draw frustration.

As per the proposal, if towns and villages don’t meet their targets, the state will intervene with a fast-tracked approval process to build more homes. It will also require municipalities with MTA rail stations to locally rezone for higher density residential development.

Last Friday, in response to the housing proposal, members of the Senate Republican Delegation and the Long Island Assembly Delegation, as well as legislators and town supervisors from across Suffolk County, joined together during a press conference at the Perry B. Duryea State Office Building in Hauppauge to “call out the governor for her State of the State promise to further abuse her power by denying local elected officials the ability to legislate housing policies in their own municipalities.”

“People aren’t going to respond well to being told what to do,” Southampton Town Supervisor Jay Schneiderman said on Monday during an interview. “We all have comprehensive plans, we all know our community, we know what the opportunity sites are. The governor’s well intentioned, but I think some of those ideas are nonstarters. But any incentives are certainly welcome.”

According to the proposed plan, all downstate cities, towns and villages will be required to have a 3 percent new home target over three years — and 1 percent for upstate counties — and each municipality will decide how to best meet this goal, from repurposing underutilized office parks and strip malls to offering new incentives for multifamily buildings.

But on the East End, where land is sparse due to both geography and high demand, that number sounds unrealistic, according to East Hampton Town Supervisor Peter Van Scoyoc.

“I don’t know how we would do that — and at what point do you now have enough housing?” he posed on Friday during an interview. “Is it 3 percent every three years for how many years? That would be the big question mark on that one for me.”

Localities that do not meet targets can achieve safe harbor status for one three-year cycle by implementing certain good faith actions — or “preferred actions” — that create zoning capacity to achieve the growth targets. If, after three years, a municipality is still falling short of its targets, proposed housing developments that meet particular affordability criteria, but may not conform to existing zoning, could take advantage of a fast-track housing approval process if the locality denies the permit.

By imposing mandates, Hochul is pitting the state against local governments, instead of inviting them in as partners, according to State Assemblyman Fred W. Thiele Jr., who said on Monday that he opposes this part of the proposed plan.

“Local governments want to do housing. They need help doing housing, and home rule and control of local land use is a cherished part of life in New York State,” he said. “[Hochul] made that kind of attempt last year with accessory dwelling units, and it didn’t gain very much support. I think this is the same mistake again.”

Thiele noted that building new housing alone does not ensure affordability and said the distinction needs to be made in the New York Housing Compact.

Towns and villages are already working toward increasing their affordable inventory, explained Maria Moore, the mayor of Westhampton Beach.

“It is important for local governments to address the needs of their communities,” she said. “With respect to the need for housing, Westhampton Beach is in the process of doing just that.”

Last year, the village approved a 37-unit multifamily development and a 22-unit single-family residence development, Moore said, and currently has two pending applications: one on Montauk Highway for 45 multifamily dwelling units that include seven affordable units, and one on County Road 31 for 16 multifamily senior citizen dwelling units that include three affordable units.

Altogether, the four properties represent an increase of more than 5 percent of available dwellings in the village, she said, and are all located within 1 mile of the Long Island Rail Road — which is notable because the governor’s plan specifically calls for more housing density near LIRR stops.

According to Schneiderman, focusing on building near train stops “doesn’t really make much sense” for those who live on the East End, compared to points west, while Thiele sees its potential.

“I like the concept of transit-oriented development,” Thiele said. “I’ve got train stations, but I don’t have trains. Frankly, I’m glad to see that proposal because I think it provides an opportunity for myself, and other elected officials of the East End, that will give us the leverage I think we need to get the Long Island Rail Road to provide that additional commuter service.”

The New York Housing Compact will make available a $250 million infrastructure fund and a $20 million planning fund to support new housing production statewide, though Thiele questions whether that will be enough. Tax incentives will also be offered to build housing, which Schneiderman said he supports.

“Building an apartment in somebody’s house typically isn’t that controversial, whereas building a 100-unit apartment is going to be controversial,” he said. “If more subsidies are brought in and it jumps from 100 units down to 60 units, sometimes it can garner additional support. But the developer can’t do it with less units because the numbers don’t work, so if you bring in subsidy. Then you can make the numbers work at a density that’s more acceptable to the neighbors.”

Outside of the two funds, the nuts and bolts of the proposed housing plan are absent, though Thiele said he expects to see legislation by January 31 during Hochul’s budget presentation. Then local lawmakers will be able to weigh in during a series of public hearings, followed by negotiations, he said.

“One size fits all doesn’t fit anybody, really. The needs are different in every community,” Thiele said. “You don’t even have to go to western Suffolk versus eastern Suffolk. I always say that East Hampton is different than Riverhead, Southold is different than Southampton, and Shelter Island’s different than everybody.”

Despite the unique challenges of each community, they all face the “national crisis” that is affordable housing, Van Scoyoc said. “I think it’s the biggest threat to our community,” he said, “the unraveling of our community.”

In the coming weeks, the supervisor said he will be meeting with Stony Brook Southampton Hospital representatives to discuss affordable housing — “Who would have thought that doctors wouldn’t be able to afford to live in East Hampton anymore?” he said — noting the stigma that still surrounds the concept.

“We’re talking about us. We’re talking about everybody,” he said. “If I was trying to start out now and work and live in this community, I would be in a very difficult spot. I’m not sure I could live there. And that’s sad. It was difficult when I first started out here, but it was attainable. It’s not attainable without assistance now.”

You May Also Like:

New Construction in Montauk Sells for a Nonwaterfront Record Price

A newly constructed modern home in Montauk just set a record for the highest price ... 9 May 2025 by Staff Writer

Protest Entry Challenges Hamptons Real Estate Monoculture

A Noyac architect took a different tack with his entry into this year’s AIA Peconic ... 7 May 2025 by Brendan J. O’Reilly

Hamptons Median Home Price Reaches $2 Million for the First Time

The first-quarter home sales reports for the Hamptons real estate market are in, and it’s positive news all around. The number of sales, the median sales price and the amount of inventory were all up, according to three different reports issued by area real estate firms. For the first time, the median sales price on the South Fork reached $2 million. The Elliman Report found that the $1 million to $5 million range dominated the Hamptons market, with sales nearly doubling. Across all price points, it was the sixth consecutive quarter of annual sales gains, and the number of sales ... 30 Apr 2025 by Brendan J. O’Reilly

UK Developer Buys Further Lane Property for $12 Million, Begins To Build Anew

At the end of last year, Paul Brennan and Martha Gundersen of Douglas Elliman quietly ... by Staff Writer

Going Once, Going Twice: Auctions Are an Alternative to Traditional Real Estate Listings

In the ultra-luxury market, the delta between a seller’s lofty expectations and the price that ... 23 Apr 2025 by Brendan J. O’Reilly

Agency News: Agnes Wanielista Joins Douglas Elliman

Agnes Wanielista, a salesperson with 10 years of experience in luxury real estate, has joined ... by Staff Writer

1884 Rosemary Lodge Hits the Market

A Water Mill house that was built in 1884 and was listed on the National ... 15 Apr 2025 by Brendan J. O’Reilly

Real Estate, Money and You

“Real Estate, Money and You,” a real estate investment seminar, was hosted by Douglas Elliman ... 10 Apr 2025 by Kelly Ann Smith

Ellie Awards Recognize Top Performers

On Wednesday, March 19, Douglas Elliman announced the winners of the 2025 Ellie Awards, which honor the firm’s top-performing agents throughout the nation. “Since stepping into this role at Douglas Elliman, I have been deeply inspired by the dedication and resilience our agents show every day as they navigate an ever-changing market,” said Michael S. Liebowitz, the president and CEO of Douglas Elliman Inc. “Their expertise, entrepreneurial drive, and commitment to excellence not only set them apart as real estate professionals — they are the source of our reputation for providing the highest level of client service. I look forward ... 26 Mar 2025 by Staff Writer

East Hampton's Butterfly House Is on the Market

An East Hampton home known as Butterfly House, which exhibits the butterfly roof design that ... 21 Mar 2025 by Staff Writer