Governor Has Until October 9 To Sign Or Veto Community Housing Fund Bill - 27 East

Real Estate News

Real Estate News / 1821903

Governor Has Until October 9 To Sign Or Veto Community Housing Fund Bill

icon 1 Photo
Governor Kathy Hochul at Friday's fundraiser.  DANA SHAW

Governor Kathy Hochul at Friday's fundraiser. DANA SHAW

Brendan J. O’Reilly on Sep 29, 2021

The State Legislature sent Governor Kathy Hochul a bill on Tuesday, September 28, that would establish the Community Housing Fund on the East End, and she has until October 9 at midnight to either sign the legislation into law or veto it.

The same day that the Peconic Bay Region Community Housing Act was delivered to the governor, more than 35 East End leaders and organizations signed onto a letter urging her to approve the bill. The letter cites the region’s affordable housing crisis and points out that the COVID-19 pandemic has exacerbated the problem.

The bill, which the Legislature passed back in spring, would enable each town to hold a referendum on the Community Housing Fund — but only after the town creates a plan to demonstrate to the public how the fund would be used to produce affordable housing. Some options are building or rehabilitating housing to be rented or sold at affordable rates or helping homebuyers by subsidizing the cost of a house.

In towns where voters approve the fund, an additional half-percent tax will be added to the existing 2 percent Community Preservation Fund tax, which is imposed on house sales in the five East End towns. The revenue from the additional half-percent tax will go into a dedicated fund to be used for affordable housing initiatives.

Though the tax rate would rise from 2 percent to 2.5 percent, nearly a third of all real estate transactions will actually pay less in terms of dollars, according to the office of Assemblyman Fred W. Thiele Jr., the author of the bill. That’s because the law increases exemptions. In Southampton, East Hampton and Shelter Island towns, the exempt amount of the purchase price would rise from $250,000 to $400,000. In Riverhead and Southold, it would increase from $150,000 to $200,000.

On the South Fork, taxes will be reduced for transactions of less than $1 million. On the North Fork, transactions for less than $400,000 will have taxes reduced.

The letter to the governor notes that the median home price in Suffolk County was $397,400 in 2019 while it was $671,600 in Southampton and $869,600 in East Hampton.

“Local employers have increasing difficulty hiring and retaining employees,” the letter states. “Local volunteer emergency services agencies also experience difficulty in recruitment and retention. Local families are leaving the area.”

The letter also notes that because workers must come from up west, where housing costs are lower, traffic congestion on local roads has reached “gridlock levels,” and the lack of affordable housing has also resulted in substandard and illegal housing conditions.

You May Also Like:

Transitional Sagaponack Estate Sells For $17 Million

A 2.3-acre Sagaponack Village estate with a 12,000-square-foot transitional residence recently sold for an even ... 7 Dec 2021 by Staff Writer

Ground Broken On Five Affordable Houses In Riverside

The Southampton Housing Authority and Habitat for Humanity of Suffolk broke ground on November 22 ... 30 Nov 2021 by Brendan J. O’Reilly

Jennifer Ponzini Joins Saunders & Associates

Associate broker Jennifer Ponzini, who is licensed in both New York and Florida, has joined ... 19 Nov 2021 by Staff Writer

Parrish Pond Estate Sells For $6.2 Million

A Southampton estate in the Parrish Pond neighborhood with water views recently sold for $6.2 ... by Staff Writer

Sagaponack Traditional Sells Above Asking Price For $10.3 Million

A Sagaponack traditional just a few doors down from Sagg Main Beach recently sold for ... by Staff Writer

Shinnecock Hills Bayfront Home Sells For $7.3 Million

A modern bayfront home in Shinnecock Hills recently sold for $7.32 million after seeking $8 ... by Staff Writer

Leos Lane Home Trades For $6.3 Million

A Southampton Village residence built in 2014 recently sold for $6.3 million, which is $1.5 ... by Staff Writer

Thiele: Concerns About Eligibility To Collect Advances For Seasonal Rentals Are Easily Remedied

The New York State Association of Realtors has raised concerns that some homeowners will not benefit from a new law that allows landlords to collect rent for the entire season upfront, but the legislation’s author explained Friday how landlords and municipalities can easily meet the law’s eligibility requirements. In September, Governor Kathy Hochul signed into law Assemblyman Fred W. Thiele Jr.’s legislation that clarifies that seasonal rentals are not subject to caps on collecting deposits and advance payments. A few requirements must be met in order for landlords to take advantage of that exemption. Tenants must occupy the rental unit ... 16 Nov 2021 by Brendan J. O’Reilly

Sagaponack’s ZIP Code Is Third Most Expensive In U.S.

Sagaponack’s 11962 is the third most expensive ZIP code in the United States, dropping one ... by Staff Writer

West End Road Residence By Roger Bullard Listed For $60M

An oceanfront residence in the Georgica section of East Hampton that was designed by the ... 15 Nov 2021 by Staff Writer

Welcome to our new website!

To see what’s new, click “Start the Tour” to take a tour.

We welcome your feedback. Please click the
“contact/advertise” link in the menu bar to email us.

Start the Tour
Landscape view not supported
Send this to a friend