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:

Quail Ridge Residents Scramble After Apartments Are Purchased for Redevelopment | 27Speaks Podcast

The tenants of Quail Ridge — the two dozen studio and one-bedroom apartments spread over ... 3 Jul 2025 by 27Speaks

Water Mill Property Where Hal Buckner and Dorothy Lichtenstein Left Their Marks Is for Sale

A Water Mill property that hosts a former dairy barn turned artist’s studio and a ... 30 Jun 2025 by Brendan J. O’Reilly

Sundays on the Bay Hits the Market

Sundays on the Bay restaurant and marina on Dune Road in Hampton Bays has hit ... 29 Jun 2025 by Staff Writer

Hamptons Rental Market Remains Alive and Well

To paraphrase Mark Twain, reports of the demise of the Hamptons summer-rental market are greatly exaggerated. “Any hint that the Hamptons rental market is anything but robust is completely wrong,” said Corcoran associate broker Gary DePersia in East Hampton. An interesting dynamic is stirring in the Hamptons vacation-rental market. Although there has been an unprecedented rise in short-term rentals and the aftershocks of the COVID-19 pandemic linger, it has been a bumper crop year for Wall Street, interest rates have remained steady and a new breed of demanding customer is emerging. Despite it all, the Hamptons vacation-rental market remains as ... 19 Jun 2025 by Joseph Finora

Jon Vaccari Joins Noble Black & Partners at Douglas Elliman

Jon Vaccari, a longtime resident of Sag Harbor, has joined Noble Black & Partners at ... 18 Jun 2025 by Staff Writer

Appeals Court Sides With Landowner Over Southampton Village ZBA

Southampton Village has lost an appeal that sought to reinstate a Zoning Board of Appeals ... 12 Jun 2025 by Brendan J. O’Reilly

Last Parcel of Startop Ranch in Montauk Sells

The last plot of land at Startop Ranch in Montauk, 107 Startop Drive, has sold ... by Staff Writer

Hamptons Real Estate Roundtable, Memorial Day Weekend 2025 Edition

With Memorial Day weekend about to kick the Hamptons into high season, The Express News ... 22 May 2025 by Moderated by Brendan J. O’Reilly

Au-Delà Real Estate Vows To Go 'Beyond'

Au-Delà Real Estate, a new boutique real estate firm based in East Hampton, is now ... 20 May 2025 by Brendan J. O’Reilly

AI Helps Rental Seekers Find Homes That Match Their Aesthetic Preferences

Consumers increasingly have an expectation of superior, more personalized service based on their own particular ... by Steven Loeb