Thiele Counters Hochul's Housing Plan With Incentive Proposal, Which Gets Southampton Town Board Support

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Southampton Town Councilwoman Cyndi McNamara sponsored a resolution asking Governor Kathy Hochul to uphold local authority.

Southampton Town Councilwoman Cyndi McNamara sponsored a resolution asking Governor Kathy Hochul to uphold local authority.

New York State Assemblyman Fred W. Thiele Jr.

New York State Assemblyman Fred W. Thiele Jr.

Kitty Merrill on Mar 15, 2023

State Assemblyman Fred W. Thiele Jr. doesn’t know a single municipality in his district that supports Governor Kathy Hochul’s proposed housing plan. Unveiled earlier this year, it would attempt to override local zoning to create more housing opportunities.

Local municipalities have decried the plan, and on Tuesday, March 14, the Southampton Town Board approved a memorializing resolution calling upon the governor and State Legislature to uphold local zoning authority and collaborate with local municipalities on any state initiatives addressing affordable housing.

Councilwoman Cyndi McNamara, who sponsored the resolution, said, “Our zoning code allows us to maintain the character of our local communities. Regulating residential housing falls under the purview of municipal home rule which must be preserved at all costs. Under the governor’s plan, local communities like Hampton Bays with its availability of developable land in close proximity to the [Long Island Rail Road] could see an increase in density they are simply not equipped to handle.”

The board voted unanimously in favor of the resolution.

On Thursday, March 16, the Assembly is slated to vote on its own budget proposal. It agrees with the governor’s housing goals but rejects any mandates on local government in favor of an incentive program.

“I am the prime sponsor of this proposal, as chair of the Assembly Local Governments Committee,” Thiele said.

If adopted, the measure would modify the executive proposal that would establish new housing development targets in each municipality by removing the state mandates and procedures to override local zoning, and instead would propose to incentivize the development of new housing in municipalities. It would provide $500 million in total funding for cities, towns, and villages outside of the City of New York.

Municipalities would receive an initial payment for submitting a housing growth plan and providing detailed information about housing for their jurisdictions. This would be 30 percent of the total payment to each local government, Thiele said.

Municipalities would receive a second payment if they meet housing growth targets during the three-year target period beginning January 1, 2024, with a 24-month grace period for permitted new residential dwelling units to receive certificates of occupancy. The second payment for meeting the targets would be 70 percent of the total payment to each local government, according to the assemblyman.

Housing growth targets will be set at 3 percent for downstate communities and 1 percent for all others. Housing growth targets will be calculated with special consideration of affordability, rehabilitation of abandoned buildings, transit-oriented development and zoning changes.

“The governor’s budget proposal recognizes the housing crisis facing our state. The legislature agrees and shares the goals outlined in her budget proposal,” Thiele said Tuesday night. “However, the legislature believes we must chart a different course for addressing the housing crisis. The legislature believes the state should partner with local governments, not impose mandates and override local control.

“I believe the legislature’s collaborative approach addresses the concerns with the governor’s plan raised by the Town of Southampton and local governments across the state.”

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