Town of Southampton, NY
Suffolk County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Town Board of the Town of Southampton 3-27-1984 by L.L. No. 3-1984; amended in its entirety 12-13-2005 by L.L. No. 65-2005.[1] Subsequent amendments noted where applicable.]
GENERAL REFERENCES
Housing Office — See Ch. 30.
Building construction — See Ch. 123.
Tax exemptions for affordable housing — See Ch. 298, Art. III.
Tax exemptions for senior citizens — See Ch. 298, Art. V.
Zoning — See Ch. 330.
[1]
Editor's Note: This local law stated that its provisions would apply to those units receiving a certificate of occupancy or a renewed certificate of occupancy subsequent to the effective date of this law.
The Town notes that references in this chapter to Senior Citizen Planned Residential District (SCPRDD) and site plan/special exception use for Multifamily Residential Development (MFRD) are to sections which are under consideration by the Town Board but have not been adopted as of this date.

§ 216-1 Purpose; findings.

A. 
The purpose of this chapter is to establish a Town of Southampton Community Housing Opportunity Fund ("Community Housing Opportunity Fund" or CHOF) and to provide for administration and control of community housing opportunities, community benefit units and other resources created through the fund and/or pursuant to various provisions of Chapter 330, Zoning, of the Town of Southampton.
B. 
The Town of Southampton Community Housing Opportunity Fund is intended to provide the Town with a mechanism for funding and creating housing opportunities for families and individuals who are residents of the Town of Southampton and/or employed in the Town of Southampton who cannot procure affordable housing within the Town.
C. 
Affordable housing is critical. Regional employers grapple with the task of hiring and retaining employees because of the limited availability of affordable housing. Recruiting and retaining essential personnel (e.g., public safety, health care, municipal employees, volunteer EMS, and fire protection) has become increasingly challenging because of the lack of affordable housing. Volunteer emergency services also are impacted by the lack of affordable housing, prompting the possibility of paid services. While the Town has benefited from increased tourism and second home ownership, the Town Board now finds there is a need to ensure housing opportunities for income-eligible households in order to sustain the local economy and community services. Presently, income-eligible households priced out of market-rate housing include health-care professionals, teachers, municipal staff, shop clerks, mechanics, and many others. Additionally, the Town has found that there is a need to sustain the ranks of its volunteers who provide critical public-safety services for fire protection and emergency medical services. The Town Board has also found that it has a substantial demographic cohort of persons aged over 55 years, and given present economic factors the Town Board has deemed it necessary to provide for affordable senior housing within the Town.
D. 
The purpose of this chapter is to streamline and clarify the procedures for creating, obtaining and transferring affordable housing and to provide financial support for the Town of Southampton Housing Authority and other program needs subject to Town Board approval, via budget appropriations from the Community Housing Opportunity Fund.
[Amended 8-12-2008 by L.L. No. 49-2008]

§ 216-2 Definitions.

As used in this chapter, the following terms shall have the meanings indicated:
ACCESSORY APARTMENT
As defined in § 330-5 of the Town Code.
ADAPTABLE DESIGN
As defined in §123-30 of Chapter 123, Building Construction, of the Town Code.
[Added 6-9-2009 by L.L. No. 24-2009]
AFFORDABILITY RESTRICTIVE COVENANT
A recorded restriction imposed on real property reserved for income-eligible households that limits any windfall profits upon resale of the real property and ensures long-term affordability.
AFFORDABLE HOUSING
For purposes of this chapter, community benefit housing located in the Town of Southampton that is subject to an affordability restrictive covenant, as defined herein, to ensure occupancy by households meeting income limitations. See "low-income household," "moderate-income household," "median-income household," and "middle-income household."
AGE-RESTRICTED UNIT
A housing unit in which there are restrictions on occupancy as set forth in § 330-14A, B, C and D or as the Town Board may determine by resolution ordinance or local law. Procedures governing the provisions for qualified disabled individuals are set forth in § 216-5E of this chapter.
APARTMENT
As defined in § 330-5 of the Town Code.
APARTMENT HOUSE
As defined in § 330-5 of the Town Code.
APPRECIATION BENEFIT
The difference between the original market value of the unit based upon the Town's appraisal and the market value at the time of resale and upon the Town's appraisal less the cost of any permanent improvements.
BUYER BENEFIT
A lien on a housing unit calculated by the difference between the original purchase price of the housing unit paid by the buyer and the Town's appraisal of the fair market value of the housing unit at the time of sale.
CERTIFICATE OF CONFORMITY
The document issued by the Town to confirm that resale prices are in conformity with the applicable provisions of the Town Code of the Town of Southampton.
CERTIFICATE OF ELIGIBILITY
The document issued by the Town to confirm eligibility status for an applicant seeking a unit reserved for an income-eligible household.
CONSUMER PRICE INDEX
The Consumer Price Index as published by the United States Department of Labor, Bureau of Labor Statistics for the New York Metropolitan Area.
COMMUNITY BENEFIT UNIT
Housing unit(s) which is (are) intended to provide a long-term benefit to the community as an affordable housing unit(s) for income-eligible households.
COMMUNITY HOUSING
Owner-occupied housing for households whose incomes are not sufficient, pursuant to banking industry standards, to induce private lenders to finance the costs of acquisition of a home with a value at or less than median housing value in the particular hamlet area or census tract, without benefit of subsidies or special financing programs from the Town.
COMMUNITY HOUSING ADVISORY COMMISSION
The Town of Southampton Housing Commission established pursuant to this chapter of the Town Code.
[Amended 8-12-2008 by L.L. No. 49-2008]
COMMUNITY HOUSING OPPORTUNITIES
Generally, defined as below-market-rate housing.
COMMUNITY HOUSING OPPORTUNITY FUND (CHOF)
The revolving fund established by the Town Board, pursuant to this chapter and Chapter 8, Budget, to facilitate community housing opportunities.
COMMUNITY HOUSING TRUST
The Southampton Town Community Housing Land Trust, a private nonprofit corporation.
COMMUNITY HOUSING UNIT INVENTORY
The list maintained by the Department of Land Management of units reserved for income-eligible households. Said inventory of community housing units shall be listed on a community planning area basis or by hamlet, with respective school districts and pertinent property information identified.
[Amended 8-12-2008 by L.L. No. 49-2008]
COMMUNITY LAND TRUST (CLT)
A non-profit corporation created to acquire and hold land for the benefit of a community and provide affordable access to land and housing for community residents. In particular, the CLT attempts to meet the needs of residents least served by the prevailing market. The Community Land Trust helps the community keep housing affordable for future residents and capture the value of public investment for long-term community benefit.
CURRENT APPRAISED VALUE
The value of a housing unit which is a calculation of the average of the Town's appraisal of such unit and the owner's private appraisal of such unit.[1]
DWELLING UNIT
As defined in § 330-5 of the Town Code.
EFFICIENCY UNIT
As defined in § 330-5 of the Town Code.
ELIGIBILITY LISTS
The lists, maintained by the Department of Land Management, of applicants (households) seeking a unit reserved for either a low-income, moderate-income, or middle-income household.
[Amended 8-12-2008 by L.L. No. 49-2008]
HOMEOWNER DISPLACED BY NATURAL DISASTER
A homeowner displaced by a hurricane, flood or tornado whose primary residence has been rendered uninhabitable, as determined by the Suffolk County Department of Health Services, and:
[Amended 11-13-2012 by L.L. No. 14-2012]
A. 
Who had no other source of total indemnity for the loss of the primary residence available to the homeowner from any other federal, state or county program; and
B. 
Who meets the asset limitation policy of net assets that are less than 25% of a current, fully constructed appraised value of the housing unit after deducting the downpayment and estimated closing costs necessary to purchase the unit.
HOUSING AUTHORITY
The Southampton Town Housing Authority, a municipal corporation.[2]
HOUSING REGISTRY
The listing, maintained by the Department of Land Management, of applicants seeking certificates of eligibility for community housing opportunities.
[Amended 8-12-2008 by L.L. No. 49-2008]
INCOME-ELIGIBLE HOUSEHOLDS
Those individuals/families whose incomes are classified as "low income," "moderate income" or "middle income" as defined by Town Board resolution adopted annually or at such other additional times as the Town Board deems appropriate.
INTENT TO SELL NOTICE
A written notice, sent certified mail to the Town or its agent by the owner of a particular housing unit setting forth his/her desire to locate a buyer for such unit.
LOTTERY or HOUSING LOTTERY
A random selection process in connection with community housing opportunities.
LOW-INCOME HOUSEHOLD
A household, according to the U.S. Department of Housing and Urban Development (HUD), whose gross annual income is less than 50% of the median gross household income for households of the same size within the housing region in which the housing is located, or as determined from time to time by Town Board resolution.
MEDIAN-INCOME HOUSEHOLD
According to the U.S. Department of Housing and Urban Development (HUD), a household whose gross annual income is 100% of the median gross household income for households of the same size within the housing region in which the housing is located.
MIDDLE-INCOME HOUSEHOLD
According to the U.S. Department of Housing and Urban Development (HUD), a household whose gross annual income is greater than 80%, but does not exceed 120% of the median gross household income for households of the same size within the housing region in which the housing is located, or as determined from time to time by Town Board resolution.
MODERATE-INCOME HOUSEHOLD
According to the U.S. Department of Housing and Urban Development (HUD), a household whose gross annual income is greater than 50%, but does not exceed 80% of the median gross household income for households of the same size within the housing region in which the housing is located, or as determined from time to time by Town Board resolution.
MULTIFAMILY PLANNED RESIDENTIAL DEVELOPMENT (MFPRD)
As defined in § 330-5 and subject to the provisions of Article IV of Chapter 330, Zoning, of the Town Code.
MULTIFAMILY RESIDENTIAL DEVELOPMENT (MFRD)
As defined in § 330-5 and subject to the provisions of § 330-138 of the Town Code.
MULTIPLE DWELLING
As defined in § 330-5 of the Town Code for "dwelling, multiple."
ONE-FAMILY DWELLING
As defined in § 330-5 of the Town Code.
PERMANENT FIXED IMPROVEMENT
Additions that provide added value to the property above and beyond repairs to maintain a property in good condition; for purposes of this chapter, an improvement to a unit reserved for income-eligible households which cannot be removed without substantial damage to the subject premises or total loss of value of said improvements. No adjustment will be deemed a permanent fixed improvement unless the actual cost of the improvement to the owner exceeds 1% of the purchase price for the unit paid by the owner. No adjustment will be made unless valid written documentation of the cost of said improvement is presented to the Director.
PLANNED DEVELOPMENT DISTRICT (PDD)
As defined in Article XXVI, § 330-240, of the Town Code.
QUALIFIED ACTIVE MEMBER OF FIRE /EMS VOLUNTEER COMMUNITY SERVICE
An enrolled volunteer who is certified to be so enrolled for not less than one year by an incorporated volunteer fire company, fire department or volunteer ambulance service.
QUALIFIED DISABLED INDIVIDUAL
An individual who is not age-eligible for senior citizen housing or an age-restricted housing unit but at the time of availability of a community benefit unit has a physical impairment that substantially impairs one or more of his / her major life activities. Such individual shall be eligible for occupancy within an age-restricted unit under other provisions of applicable law governing age-restricted housing, provided that a letter of permission is authorized by the Town, pursuant to § 216-5E. The Town may require proof of disability.
SENIOR CITIZEN
As defined in § 330-5 of the Town Code.
SENIOR CITIZEN HOUSING
As defined in § 330-5 of the Town Code.
SENIOR CITIZEN HOUSING UNIT
As defined in § 330-5 of the Town Code.
SENIOR CITIZEN PLANNED RESIDENTIAL DEVELOPMENT (SCPRD)
As defined in § 330-5 and subject to the provisions of this chapter and Article III of Chapter 330, Zoning, of the Town Code.
TOWN
The Town of Southampton.
TWO-FAMILY DWELLING
As defined in § 330-5 of the Town Code.
UNIT RESERVED FOR LOW-INCOME HOUSEHOLD
A dwelling unit, or unimproved lot, the cost of which makes it available to a low-income household; rental price and maximum sales price to be determined by the Department of Land Management based upon a formula adopted by Town Board resolution at such times as the Town Board deems appropriate.
[Amended 8-12-2008 by L.L. No. 49-2008]
UNIT RESERVED FOR MIDDLE-INCOME HOUSEHOLD
A dwelling unit, or unimproved lot, the cost of which makes it available to a middle-income household; rental price and maximum sales price to be determined by the Department of Land Management based upon a formula adopted by Town Board resolution at such times as the Town Board deems appropriate.
[Amended 8-12-2008 by L.L. No. 49-2008]
UNIT RESERVED FOR MODERATE-INCOME HOUSEHOLD
A dwelling unit, or unimproved lot, the cost of which makes it available to a moderate-income household; rental price and maximum sales price to be determined by the Department of Land Management based upon a formula adopted by Town Board resolution at such times as the Town Board deems appropriate.
[Amended 8-12-2008 by L.L. No. 49-2008]
UNIVERSAL DESIGN
As defined in § 123-30 of Chapter 123, Building Construction, of the Town Code.
[Added 6-9-2009 by L.L. No. 24-2009]
[1]
Editor's Note: The former definition of "Director of Housing," which immediately followed, was repealed 8-12-2008 by L.L. No. 49-2008.
[2]
Editor's Note: The former definition of "Housing Office," which immediately followed, was repealed 8-12-2008 by L.L. No. 49-2008.

§ 216-3 Interagency cooperation; priority review.

A. 
Interagency cooperation for community housing opportunities created pursuant to Chapter 330, Zoning, of the Town Code.
[Amended 8-12-2008 by L.L. No. 49-2008]
(1) 
When the Town Board approves any of the following types of floating zone designations or amendments to the Town Zoning Map, notification will be given to the Department of Land Management, together with any covenants or agreements filed in connection with said development:
(a) 
Senior Citizen Planned Residential Development (SCPRD) or an amendment to a Senior Citizen Zone (SC-44) under the provisions of Article III of Chapter 330, Zoning.
(b) 
Multifamily Planned Residential Development (MFPRD) or an amendment to a Multifamily Zone (MF-44) under the provisions of Article IV of Chapter 330, Zoning.
(c) 
Planned Development District (PDD) or an amendment to a PDD under the provisions of Article XXVI of Chapter 330, Zoning, only if such PDD involves community benefit units reserved for income-eligible households.
(d) 
Affordable Housing Overlay District (AHOD) or an amendment to an AHOD under the provisions of Article VA of Chapter 330, Zoning.
(e) 
Increased residential density housing development for a bona fide nonprofit corporation to establish affordable housing inventory.
(2) 
Whenever the Town Board approves any of the following types of transfer of development rights applications, notification will be given to the Department of Land Management, together with any covenants or agreements filed in connection with said project relating to the development:
(a) 
Transfer of permitted residential development rights (TDRs) pursuant to § 330-7 and Chapter 244.
(b) 
Residential Receiving Area Districts (RRADs), pursuant to Article XXV of Chapter 330, Zoning.
(3) 
When the Planning Board approves any of the following types of applications, notification will be given to the Department of Land Management, together with any covenants or agreements filed in connection with said development:
(a) 
Density incentive pursuant to § 330-9.
(b) 
Accessory apartments pursuant to Article IIA of Chapter 330, Zoning.
(c) 
Site plan for Senior Citizen Planned Residential Development (SCPRD) or an amendment to a Senior Citizen Zone (SC-44) under the provisions of Article III of Chapter 330, Zoning.
(d) 
Site plan for Multifamily Planned Residential Development (MFPRD) or an amendment to a Multifamily Zone (MF-44) under the provisions of Article IV of Chapter 330, Zoning.
(e) 
Site plan for Planned Development District (PDD) or an amendment to a PDD under the provisions of Article XXVI of Chapter 330, Zoning, only if such PDD involves community benefit units reserved for either income-eligible households.
(f) 
Site plan for Affordable Housing Overlay District (AHOD) or an amendment to an AHOD under the provisions of Article VA of Chapter 330, Zoning.
(g) 
Site plan for increased residential density housing development for a bona fide nonprofit corporation to establish low- and lower-middle-income housing inventory pursuant to § 330-8.
(h) 
Site plan / special exception use permit for Multifamily Residential Development (MFRD) pursuant to § 330-138.
(i) 
Site plan / special exception use permit for a three-family house or four-family house, pursuant to § 330-162.19.
(4) 
Whenever the Building Department approves any of the following types of applications, notification will be given to the Department of Land Management, together with any covenant or agreement affecting the dwelling unit or units:
(a) 
Permits for all of the items listed in § 216-3 above.
(b) 
Certificates of occupancy for all of the items listed in § 216-3 above.
(c) 
Density incentive and carriage houses pursuant to § 330-9.
B. 
Priority review for housing opportunities created pursuant to Chapter 330, Zoning, of the Town Code.
(1) 
Whenever the Town Board refers an application for any of the following types of floating zone designations or amendments to the Town Zoning Map to the Planning Board for review and report, the Planning Board will assign a first-priority status to the application to be reviewed by the Planning Board in the performance of its duties. Such applications will retain first-priority status for as long as there is compliance with all sections of this Code through the approval process, including resubmissions and revisions and if, in the opinion of the Planning Board, the applicant continues to apply a good-faith diligent effort to prepare, submit and process the application. Should the application no longer comply with the sections cited herein or, in the opinion of the Planning Board, the applicant is not applying in a good-faith effort with respect to this Code, a normal priority shall be reassigned to the applications by a written resolution of the Planning Board.
(a) 
Senior Citizen Planned Residential Development (SCPRD) or an amendment to a Senior Citizen Zone (SC-44) under the provisions of Article III of Chapter 330, Zoning.
(b) 
Multifamily Planned Residential Development (MFPRD) or an amendment to a Multifamily Zone (MF-44) under the provisions of Article IV of Chapter 330, Zoning.
(c) 
Planned Development District (PDD) or an amendment to a PDD under the provisions of Article XXVI of Chapter 330, Zoning, only if such PDD involves more than 25% of the total units to be reserved for income-eligible households.
(d) 
Affordable Housing Overlay District (AHOD) or an amendment to an AHOD under the provisions of Article VA of Chapter 330, Zoning.
(e) 
Increased residential density housing development for a bona fide nonprofit corporation to establish affordable housing inventory pursuant to § 330-8.
(2) 
Whenever the Planning Board receives an application for any of the following types of applications, the Planning Board will assign a first-priority status to the application to be reviewed by the Planning Board in the performance of its duties. Such applications will retain first-priority status for as long as there is compliance with all sections of this Code through the approval process, including resubmissions and revisions and if, in the opinion of the Planning Board, the applicant continues to apply a good-faith diligent effort to prepare, submit and process the application. Should the application no longer comply with the sections cited herein or, in the opinion of the Planning Board, the applicant is not applying in a good-faith effort with respect to this Code, a normal priority shall be reassigned to the applications by a written resolution of the Planning Board.
(a) 
Density incentive pursuant to § 330-9.
(b) 
Accessory apartments pursuant to Article IIA of Chapter 330, Zoning.
(c) 
Site plan / special exception use permit for three-family house or four-family house, pursuant to § 330-162.19, proposed with units reserved for income-eligible households.
(d) 
Site plan / special exception use permit for multifamily residential development (MFRD) pursuant to § 330-138, only if such MFRD involves more than 25% of the total units to be reserved for income-eligible households.

§ 216-4 Administration and control of housing opportunities created pursuant to Chapter 330 of Town Code.

A. 
The Department of Land Management or its agent will be responsible for the administration and control of community housing opportunities, as defined in § 216-2, and community benefit units created pursuant to Chapter 330, Zoning, of the Town Code.
[Amended 8-12-2008 by L.L. No. 49-2008]
B. 
The Town will promulgate all rules and regulations, including model agreements and forms, necessary to implement this chapter and the provisions of Chapter 330, Zoning, pertaining to affordable housing or community benefit units.
C. 
The Town will cause to be prepared and will maintain a housing registry, as defined in § 216-2, of applicants interested in community housing opportunities and eligibility lists for the various units reserved for income-eligible households under Chapter 330, Zoning, of this Code.
D. 
The Town will cause to be prepared and will maintain a community housing unit inventory, as defined in § 216-2, of all units reserved for income-eligible households.
E. 
Priority households.
(1) 
To the extent permitted by law and federal, state, and county programs, priority for non-age-restricted affordable housing opportunities is as follows:
[Amended 11-13-2012 by L.L. No. 14-2012]
(a) 
Income-eligible households residing year-round in the Town of Southampton in which at least one adult member is a qualified active member of fire / EMS volunteer community services in the Town, as defined in § 216-2. Higher priority will be given to households residing in the school district in which a particular housing unit is located.
(b) 
Income-eligible households residing year-round in the Town in which one adult family member is an honorably discharged veteran of the United States Armed Forces.
(c) 
Income-eligible homeowners displaced by natural disasters consistent with the definition provided in § 216-2 of this chapter who live or work in the Town of Southampton.
(d) 
Income-eligible households residing year-round in the Town of Southampton. Higher priority will be given to such households residing in the school district in which a particular housing unit is located.
(e) 
Income-eligible households residing year-round outside of the Town of Southampton but in which an adult member works at a location physically within the Town. A higher priority will be given to those households in which at least one adult family member is currently employed by the Town of Southampton.
(f) 
Income-eligible households an adult member of which previously resided year-round in the Town of Southampton.
(g) 
Income-eligible homeowners displaced by natural disasters consistent with the definition provided in § 216-2 of this chapter who live or work in the County of Suffolk.
(h) 
All others.
(2) 
To the extent permitted by law and federal, state, and county programs, the priority population for age-restricted housing opportunities is as follows:
[Amended 11-13-2012 by L.L. No. 14-2012]
(a) 
Income-eligible households residing year-round in the Town of Southampton in which at least one adult member is a qualified active member of fire / EMS volunteer community services in the Town, as defined in § 216-2. A higher priority will be given to those households residing in the subject school district in which a particular housing unit is located.
(b) 
Income-eligible households residing year-round in the Town in which one adult family member is an honorably discharged veteran of the United States Armed Forces.
(c) 
Income-eligible homeowners displaced by natural disasters consistent with the definition provided in § 216-2 of this chapter who live or work in the Town of Southampton.
(d) 
Income-eligible households residing year-round in the Town of Southampton. A higher priority shall be given to households currently residing in the school district in which the particular housing unit is located.
(e) 
Income-eligible households residing outside of the Town in which an adult child or adult grandchild who is a caregiver to the income-eligible /age-eligible individual resides in the Town of Southampton. Higher priority will be given if the child or grandchild is a qualified active member of fire / EMS volunteer community services in the Town, as defined in § 216-2.
(f) 
Income-eligible households who reside outside of the Town of Southampton but in which at least one adult member works at a location physically within the Town. A higher priority will be given to those households in which at least one adult member is currently employed by the Town of Southampton.
(g) 
Income-eligible households an adult member of which previously resided year-round in the Town of Southampton.
(h) 
Income-eligible homeowners displaced by natural disasters consistent with the definition provided in § 216-2 of this chapter who live or work in the County of Suffolk.
(i) 
All others.
(3) 
The Town may develop a system for purposes of ensuring a weighted housing lottery for community housing opportunities.
F. 
New York State General Municipal Law § 72-h transfer program. Where designated uninhabitable improved parcels and vacant parcels are transferred by the County of Suffolk to the Town, or other not-for-profit housing organizations, for nominal consideration and constructed and/or reconstructed for affordable housing purposes, the following additional standards shall apply:
[Added 6-9-2009 by L.L. No. 24-2009[1]]
(1) 
Priority shall be given to income-eligible military veterans prior to any lottery system, consistent with the terms of Article 36 of the Suffolk County Administrative Code and § 216-5A(5)(e) herein. Income-eligible military veterans shall have served during expeditionary service in a theatre of conflict in Iraq or Afghanistan, as verified by the Office of Veterans’ Affairs and the Director of Human Services, subject to the following:
(a) 
The Office of Veterans’ Affairs, together with the Director of Human Services, shall verify that an applicant possesses a form DD-214 to verify honorable service and one or more of the following awards/medals in order to qualify under this section:
[1] 
Afghanistan Campaign Medal;
[2] 
Iraq Campaign Medal;
[3] 
Global War on Terrorism Expeditionary Medal;
[4] 
Navy Expeditionary Medal (Iraq or Afghanistan);
[5] 
Marine Corps Expeditionary Medal (Iraq or Afghanistan);
[6] 
Combat Action Ribbon;
[7] 
Combat Action Badge;
[8] 
Combat Medical Badge;
[9] 
Purple Heart Medal; and
[10] 
Silver Star Medal.
(2) 
Prior to any lottery system, priority shall be given to income-eligible homeowners displaced by natural disasters consistent with the definition provided in § 216-2 of this chapter who live or work in the Town of Southampton.
[Added 11-13-2012 by L.L. No. 14-2012[2]]
[2]
Editor's Note: This local law also provided for the renumbering of former Subsection F(2) and (3) as Subsection F(3) and (4), respectively.
(3) 
Units constructed and/or reconstructed on a parcel transferred pursuant to this Subsection F, to wit, the §72-h program, shall be constructed or reconstructed, as the case may be, using universal design features in compliance with Article IV, Universal Design, of Chapter 123, Building Construction, of the Town Code.
(4) 
Each developer constructing and/or reconstructing units on a parcel transferred pursuant to the §72-h program shall submit written assurance to the Department of Land Management that construction activities will be provided in compliance with Article IV, Universal Design, of Chapter 123, Building Construction, of the Town Code.
[1]
Editor's Note: This local law also provided for the redesignation of former Subsections F through J as Subsections G through K, respectively.
G. 
The Town Board may establish a limitation on the percentage of units reserved for income-eligible households for the higher priority populations in order to ensure a greater dispersion among eligible applicants on the housing registry.
H. 
The Town Board may, upon recommendation by the Department of Land Management and the Community Housing Commission, for a particular housing lottery for certain development projects, establish an additional eligibility preference for first-time home buyers for units reserved for income-eligible households.
[Amended 8-12-2008 by L.L. No. 49-2008]
I. 
The Town Board may for any particular housing lottery establish an additional eligibility preference for year-round income-eligible senior citizen residents of the Town who have provided a life estate to their children or grandchildren for their existing home or have agreed to sell an interest in their existing home to the Community Housing Opportunity Fund.
J. 
In instances where the conditions of any grant or federal, state or county regulations require eligibility priorities and restrictions different from the restrictions set forth in this chapter, the Town may accept same.
K. 
In instances where the Department of Land Management recommends deviation from the aforementioned eligibility preference, the Town Board, by resolution, may authorize alternative priority income-eligible households.
[Amended 8-12-2008 by L.L. No. 49-2008]

§ 216-5 Policies and procedures.

A. 
Lottery required for certain community housing opportunities.
(1) 
The following types of housing developments require a housing lottery to ensure a random selection process for the community benefit units reserved for income-eligible households. All administrative costs associated with using a qualified and Town-approved entity to screen applicants, conduct the lottery process and file any and all required documents, pursuant to Chapter 216 of the Town Code, shall be the responsibility of the project developer unless, for a not-for-profit developer, waived by resolution of the Town Board and absorbed as a Town cost.
[Amended 7-8-2008 by L.L. No. 41-2008]
(a) 
Senior Citizen Planned Residential Development (SCPRD) under the provisions of Article III of Chapter 330, Zoning.
(b) 
Multifamily Planned Residential Development (MFPRD) under the provisions of Article IV of Chapter 330, Zoning.
(c) 
Planned Development District (PDD) under the provisions of Article XXVI of Chapter 330, Zoning, only if such PDD involves community benefit units reserved for an income-eligible household.
(d) 
Affordable Housing Overlay District (AHOD) under the provisions of Article VA of Chapter 330, Zoning.
(e) 
Density incentive pursuant to § 330-9.
(f) 
Site plan / special exception use permit for multifamily residential development (MFRD) pursuant to § 330-138.
(g) 
Dwelling units for sale within the context of a two-family house, three-family house, or four-family house on a single and separate parcel in permitted zoning districts.
(2) 
The Town will develop procedures for housing lotteries for the aforementioned community benefit units or community housing opportunities listed in § 216-5A(1) or facilitated by the Community Housing Opportunity Fund. To the extent practicable, such procedures will be consistent with those promulgated by the New York State Affordable Housing Corporation, its successors and assigns.
(3) 
Certificates of occupancy.
(a) 
Certificates of occupancy (C.O.s) for the housing developments listed in § 216-5A(1) above will not be issued by the Building Inspector until the housing lottery is conducted for the units reserved for income-eligible households.
(b) 
Notwithstanding the foregoing, however, prior to the lottery, the Planning Board may authorize the Building Inspector to issue C.O.s for up to 20% of the market-rate units within a particular development upon request by an owner / manager to the Building Inspector and provided that the Building Inspector makes a referral to the Planning Board which consents and files its decision, in writing, to the Building Inspector and the Department of Land Management.
[Amended 8-12-2008 by L.L. No. 49-2008]
(c) 
In the event that a building permit has been issued for a community benefit unit, the Town shall locate a qualified buyer ready, willing and able to contract for the purchase of such unit by the time of issuance of a certificate of occupancy. Should the Town be unable to locate a qualified buyer, the Town may opt to purchase the unit pursuant to the procedures set forth in § 216-5J(2)(b). The seller must notify the Town, at least 180 days prior to the issuance of the certificate of occupancy, by written notice sent via certified mail. If notification, as described, is not received by the Town of Southampton 180 days prior to the issuance of the certificate of occupancy, the Town shall have 180 days from the date of receipt of said notification to locate a qualified buyer for such unit, or purchase the unit, which may extend beyond the issuance of the certificate of occupancy. The Town shall also notify the Town Housing Authority in the event that the Town elects not to purchase the unit or is unable to find a buyer.
[Added 7-8-2008 by L.L. No. 41-2008]
(d) 
If the Town notifies the seller in writing that it elects not to purchase the unit or is unable to locate a qualified buyer within 180 days of receipt of seller’s notice, the seller shall have the right, upon such notification from the Town, to sell the unit at market value pursuant to the procedures set forth in § 216-5J(2)(c). Notice to either party shall be deemed given when deposited in the U.S. mail or if given by overnight courier service, at the time of deposit with such overnight courier service. Upon closing of title, the seller shall be entitled to retain from market value purchase price the established community benefit unit purchase price plus any extras and upgrades. The balance (the difference between the market purchase price and the community benefit unit purchase price) shall be payable to the Town Community Housing Opportunity Fund.
[Added 7-8-2008 by L.L. No. 41-2008]
(4) 
Subsection A(1), (2) and (3) above shall not apply to the following:
(a) 
Accessory apartments in residential districts;
(b) 
Efficiency units in residential districts;
(c) 
Apartments in business districts;
(d) 
Dwelling units for rent within the context of a two-family house, three-family house, or four-family house on a single and separate parcel in the permitted zoning districts;
(e) 
Carriage houses.
(5) 
Community benefit units reserved for income-eligible households which are not subject to the aforementioned housing lottery requirements will be made available to persons on the eligibility lists maintained by the Department of Land Management as follows:
[Amended 8-12-2008 by L.L. No. 49-2008]
(a) 
The occupant is the owner or relative of the owner;
(b) 
The occupant is a qualified active member of a volunteer fire department or ambulance corps;
(c) 
The occupant is employed by the Town of Southampton;
(d) 
The occupant is employed at a location physically within the Town of Southampton;
(e) 
Where a unit is reserved for low-income, moderate-income, or middle-income households or senior citizen housing and restricted pursuant to a grant or subsidy from the federal government, State of New York or other municipal agency to provide low-income, moderate-income, or middle-income housing opportunities consistent with the intent of this chapter, the Town may accept such eligibility priorities and restrictions in lieu of the restrictions set forth in this chapter.
B. 
Establishment of initial sales price or rental price for community benefit units reserved for income-eligible households.
(1) 
Upon receipt of an application for the issuance of a certificate of occupancy for a community benefit unit reserved for an income-eligible household, or earlier if requested by the owner, but not prior to the issuance of a building permit, the Building Inspector will send a copy of the application to the Department of Land Management, which will inform the owner, in writing, within 30 days of receipt by the Department of Land Management of the maximum monthly rent or initial maximum sales price for the dwelling unit and the maximum household income for eligibility, for low-income, moderate-income or middle-income households, based upon a formula set forth in the Town Code or adopted by Town Board resolution.
[Amended 8-12-2008 by L.L. No. 49-2008]
(2) 
The Department of Land Management will ensure that the determination of gross monthly rent includes estimated tenant paid utilities. The Department of Land Management will determine the initial sales price, including the price of the land upon which the dwelling unit exists if owned in single and separate fee-title and mortgage interest rate, property taxes, hazard insurance, condominium common charges and any homeowners' association fees.
[Amended 8-12-2008 by L.L. No. 49-2008]
(3) 
To the extent practicable, units reserved for income-eligible households will meet or exceed the following minimum dwelling unit size to accommodate household or family size:
Household or Family Size
Minimum Dwelling Unit Size
1
Efficiency unit
2
1-bedroom
3
2-bedroom
5
3-bedroom
6
3-bedroom
9
4-bedroom
Note: The table above shall be used solely to determine maximum monthly rent or initial maximum monthly rent or initial maximum sales price and shall not be construed as a limitation on occupancy.
C. 
Eligibility certificates; certificates of conformity; ongoing monitoring.
(1) 
Eligibility certificates.
(a) 
The Town and its agents will have the responsibility to certify the eligibility of all applicants for units reserved for income-eligible households.
(b) 
The eligibility of a purchaser, beneficiary, distributee or legatee is to be certified prior to closing of title. No closing of a community benefit unit may take place unless an eligibility certificate shall be presented at or prior to closing of title.
(2) 
Certificates of conformity. No closing of a community benefit unit may take place unless a certificate of conformity shall be presented at or prior to closing of title.
(3) 
In the event of misrepresentation or fraud in obtaining a certificate of eligibility or certificate of conformity or violations of this Chapter 216 and the procedures adopted by the Town Board pursuant thereto, the Town and its agents may, without limitation, pursue all criminal, administrative and civil remedies, including, but not limited to, eviction, forfeiture and revocation of the certificate of occupancy.
(4) 
Ongoing monitoring requirements; owner certification.
(a) 
Rental units reserved for income-eligible households. In the case of rental units reserved for income-eligible households, the Town or its agent shall annually reexamine or cause to be reexamined the eligibility of each rental occupant household and conformity to affordability restrictive covenants; Chapter 330, Zoning; and this chapter by occupants of community benefit units.
[1] 
On or before March 31 of each year, the Town or its agent shall notify the owner or manager of rental units reserved for income-eligible households, in writing, as to the rent, sales and income eligibility requirements for such units based upon figures derived from the preceding year, in accordance with this chapter, unless otherwise provided for under applicable statute, local law, ordinance, or regulation for a particular development.
[2] 
Owner certification. The owner or manager of rental units reserved for income-eligible households shall certify, in writing, to the Town or its agent, on or before May 31 of each year, that all rental units comply with the provisions of this chapter and Chapter 330, Zoning.
[a] 
Owner certification shall be in affidavit form and approved as to form by the Town Attorney.
[b] 
Tenant certification. From time to time, the Town or its agent shall have the authority to recertify tenants as to their income-eligibility and conformity with the provisions of this chapter and the affordability restrictive covenant.
[c] 
The Town or its agent shall file with the Town Attorney a list of owners or managers of record for said rental units who have failed to respond to said owner certification, with corresponding mailing addresses and street addresses of real property encumbered with an affordability restrictive covenant, for further inquiry. The Town Attorney shall have the authority to enforce the provisions of this chapter.
(b) 
Ownership units reserved for income-eligible households. In the case of ownership units reserved for income-eligible households, the Town or its agent shall confirm occupancy and other provisions of the affordability restrictive covenant and the provisions of this chapter as follows:
[1] 
On or before March 31 of each year, the Town or its agent shall submit a written request, approved to form by the Town Attorney, to the owner-occupants of units reserved for income-eligible households, concerning compliance with applicable provisions of Chapter 216, Chapter 330, and restrictive covenants governing occupancy restrictions.
[2] 
On or before May 31 of each year, the owner-occupant shall be required to return the written documentation to the Town or its agent indicating compliance with the provisions of this chapter and the restrictive covenants.
[3] 
The Town or its agent shall file with the Town Attorney a list of owners or managers of record for said ownership units who have failed to respond to said owner certification, with corresponding mailing addresses and street addresses of real property encumbered with an affordability restrictive covenant, for further inquiry. The Town Attorney shall have the authority enforce the provisions of this chapter.
[4] 
The Town or its agent shall confirm compliance with occupancy restrictions upon resale or transfer of the community benefit unit.
D. 
Additional standards for unimproved lots.
(1) 
Where a developer executes an agreement with the Town to provide unimproved lots for income-eligible households, no contract of sale for said unimproved lots shall be executed nor shall any conveyance be completed until the eligibility of the proposed contract vendee has been certified by the Department of Land Management. A copy of the contract of sale, the deed and all instruments relating to the conveyance of title shall be filed with the Department of Land Management. A certificate of conformity issued by the Department of Land Management is required for all sales and transfers to confirm that sale prices and transfers, as the case may be, are in conformity with the provisions of Chapter 216 of the Town Code of the Town of Southampton.
[Amended 8-12-2008 by L.L. No. 49-2008]
(2) 
An unimproved lot reserved for income-eligible households may be offered for resale only to individuals who meet the applicable eligibility requirements or to a developer who will build a dwelling unit for resale in accordance with the provisions of this chapter.
(3) 
Where an owner has improved the lot with a dwelling unit, the resale and rental prices shall be governed by the provisions of § 216-5J of this chapter.
(4) 
Where the owner of an unimproved lot reserved for income-eligible households receives a grant or subsidy from the federal government, State of New York or other municipal agency to provide housing for income-eligible households consistent with the intent of this chapter, the Town may accept such restrictions that may be imposed by said agency in lieu of the restrictions set forth in this chapter.
E. 
Restrictions on age; senior citizen housing.
[Amended 8-12-2008 by L.L. No. 49-2008]
(1) 
The Department of Land Management shall enforce and administer any agreements and covenants entered into between the Town of Southampton and the owner of an age-restricted unit or senior citizen housing project developed pursuant to Article III (Senior Citizen Planned Residential Development SCPRD or its predecessor SC-44) or Article XXVI, Planned Development District, of Chapter 330, Zoning, of this Code and shall ensure that the applicable occupancy restrictions are complied with. Ongoing monitoring requirements are specified in § 216-5F above.
(2) 
In no case, shall age-restricted units be occupied by persons not meeting age eligibility restrictions, unless such individual is a spouse or caregiver over the age of 19 years, or is a qualified disabled individual as defined in § 216-2. The Department of Land Management may require proof of disability for persons not meeting age eligibility provisions. The Department of Land Management shall issue letters of permission to such persons not meeting age eligibility restrictions but who, in his or her discretion, qualify for occupancy due to other provisions of applicable law governing senior citizen housing. In no case, however, shall the Department of Land Management permit more than 10% of a particular senior citizen housing development to be occupied by persons not meeting age eligibility restrictions and, in lieu thereof, qualified under other provisions of applicable law concerning persons with disabilities and addressing needs for assessable housing opportunities. Letters of permission issued pursuant to this section shall be maintained and tracked by the Department of Land Management.
F. 
Restrictions on rentals.
(1) 
Unless otherwise prohibited as a condition of approval for the particular development under Chapter 330, Zoning, or within covenants and restrictions associated with the subject property, units reserved for income-eligible households may be rented under the following conditions:
(a) 
The apartment or dwelling unit shall remain the primary residence of the low-income, moderate-income, or middle-income household as the case may be for the term of the lease, and the occupants shall maintain the subject premises in conformity with Chapter 330, Zoning, and Chapter 261, Property Maintenance.
(b) 
The apartment or dwelling unit shall not be used or leased as a seasonal rental as the term is defined in Chapter 330, Zoning.
(c) 
Where the unit reserved for income-eligible households is to be rented, the lease for said unit shall not exceed two years. As long as an occupant household remains eligible and has complied with the terms of the lease, the occupant shall be offered a two-year renewal of the lease. If an occupant's annual income shall exceed the eligible income level by more than 20%, and there is an eligible applicant for the unit, the occupant household may complete the current lease term and shall be offered, if available, another unit for which the occupant household is income-eligible or a unit which is not a unit reserved for income-eligible households in the development. If no such dwelling unit is available, the occupant household may be allowed to sign one additional one-year lease for the unit reserved for income-eligible households, as the case may be, but no further renewal shall be permitted.
(d) 
In the circumstances referenced in Subsection F(1)(c) above, if such should occur in the same housing complex and another unit is available for which the occupant household is income-eligible (e.g., upgrade from unit reserved for moderate-income to unit reserved for middle-income household), the Department of Land Management shall have the authority to request the Building Inspector to substitute certificates of occupancy for the respective units rather than having an occupant household relocate within the same complex, provided that the units are comparable.
[Amended 8-12-2008 by L.L. No. 49-2008]
(2) 
Owner-occupancy restrictions. If the zoning approval for a particular housing development entailed an owner-occupancy provision in the enabling legislation permitting zoning incentives and/or in covenants and restrictions associated with the site plan, such condition of owner-occupancy restriction shall supersede the provisions of this chapter.
G. 
Distribution of units reserved for income-eligible households. Units reserved for income-eligible households shall be physically integrated into the design of the development in a manner satisfactory to the Planning Board during site plan review and shall be distributed among efficiency, one-, two-, three- or four-bedroom dwelling units in the same proportion as all other dwelling units in the development, unless a different proportion is approved by the Planning Board as being better related to the housing needs, current or projected, of the Town based upon recommendations of the Town's Comprehensive Plan or an Area Study, Hamlet Study, or other planning study adopted as an update to the Comprehensive Plan.
H. 
Use of one-family dwellings; upkeep.
(1) 
The occupant household of a community benefit unit reserved for an income-eligible household shall occupy the premises as their primary residence and shall not rent or lease the premises or any portion thereof to others, as an absentee landlord or otherwise.
(2) 
Use of a one-family dwelling shall be in conformity with Chapter 330, Zoning, and the occupant household shall maintain the subject premises in accordance with the provisions of Chapter 261, Property Maintenance.
I. 
Permanent fixed improvements.
(1) 
For dwelling units reserved for income-eligible households, the following types of permanent fixed improvements are prohibited for all units with certificates of occupancy dated subsequent to the effective date of this chapter:
(a) 
In-ground swimming pools.
(b) 
Tennis courts.
(c) 
Expansions of the dwelling unit greater than 50%.
(2) 
Prior to the installation of a permanent fixed improvement, the owner must notify the Town of the proposed permanent fixed improvement, together with an estimate of capital costs. The Town may request input from the Community Housing Commission prior to rendering a determination to approve or disapprove the requested permanent fixed improvement. All records regarding approval or disapproval of permanent fixed improvements for units reserved for income-eligible households shall be maintained by the Department of Land Management. Persons aggrieved by decisions of the Department of Land Management to disapprove a permanent fixed improvement to a dwelling unit reserved for income-eligible households may appeal such decision by application to the Zoning Board of Appeals to determine to approve or disapprove the Department's determination, in its discretion.
[Amended 8-12-2008 by L.L. No. 49-2008]
(3) 
For dwelling units reserved for income-eligible households, expansions of the building footprint may be considered, subject to approval by the Zoning Board of Appeals under area variance standards.
J. 
Procedure for resale of community benefit units.
(1) 
Buyer benefit. At the time of initial purchase, the Town will obtain, at its own cost, an appraisal of each unit reserved for income-eligible households to determine its fair market value. The difference between such appraised value and the purchase price shall be referred to as the "buyer benefit." The Town will place a lien in the amount of the buyer benefit on the unit. All necessary duly executed documents shall be delivered at closing in accordance with guidelines developed by the Town or its agents and applicable banking regulations.
(2) 
Resale requirements. The resale of each unit reserved for income-eligible households shall be subject to the following conditions and procedures:
(a) 
The seller of any such unit shall first give written notification via certified mail to the Town Clerk of its intention to sell. Such certified mail shall be addressed to the Town Clerk at Town Hall, 116 Hampton Road, Southampton, New York 11968 in order to be sufficient notice.
(b) 
Thereafter, upon receipt of such written notification, the Town shall have a right of first refusal to purchase the unit, the procedures for which shall be established by the Town or its agents. Simultaneously, the Town or its agent will seek to provide a purchaser meeting the eligibility requirements of this section. Should the Town choose not to exercise its right, the seller will have the right to convey the property to the purchaser selected by the Town at a price the Town or its agents shall determine. In the event the Town notifies the seller, in writing, that it elects not to purchase the unit or is unable to locate a qualified buyer within 90 days of receipt of the seller's notice set forth in Subsection J(2)(a) above, the seller shall have the right, upon written notification via certified mail from the Town, to sell the unit at market value in accordance with the criteria set forth in Subsection J(2)(c) below. The ninety-day period set forth above shall commence on the first business day after the Town Clerk shall receive said notice. Notice to the seller shall be deemed given by the Town upon deposit of written notice, addressed to the seller, in a U.S. Post Office depository or at the time of deposit of the written notice, addressed to the seller, into the custody of an overnight delivery service.
(c) 
In the event the seller shall be notified of the Town's intent either to purchase or that it has located a qualified buyer, the seller shall convey in accordance with the Town's notice. In the event the Town notifies the seller, as set forth in Subsection J(2)(b) above, in writing, that it elects not to purchase the unit or if the Director or Town notifies the seller, in writing, that he/she is unable to locate a qualified buyer within the time period as outlined in Subsection J(2)(b), the seller shall have the right to sell the unit at market value. Market value shall be determined as follows:
[1] 
Two appraisals shall be ordered by the Town, but one of these appraisals shall be paid by the seller. The average of the two appraisals shall be the purchase price. The seller of the unit shall receive the purchase price minus the following: the buyer benefit lien and the Town's portion of the appreciation as modified by the seller's permanent improvements as set forth in Subsection J(2)(c)[2] below.
[2] 
Any appreciation between a unit's market value at the time of purchase, which for purposes of this computation may be modified, at the discretion of the Director or designee, by the cost of any permanent improvements made by seller, which are to be documented by the seller as adjusted by any changes in the Consumer Price Index for "all items" for the New York Metropolitan Area from the time such improvements were affixed to the unit, and its resale price shall be distributed as follows:
Appreciation Distribution Chart
Year of Resale
Percentage to Owner
Percentage to Town
1st to 5th
25%
75%
6th or beyond
50%
50%
[a] 
Examples of resale in Year 3 and Year 10 to the Town and to an open market buyer might be as set forth below. This example is for illustrative purposes only.
Sale at Year 3
Assumptions
Average appraisal value/current appraised value
$600,000
Original market value
$500,000
Original purchase price
$142,200
Buyer benefit ($500,000-$142,200)
$357,800
Permanent improvements
$20,000
Market appreciation
$100,000
Appreciation ($100,000-$20,000)
$80,000
Purchase by Town
Purchase by open market buyer
Average appraisal value/current appraised value
$600,000
Buyer benefit ($357,800)
$357,800
Town appreciation benefit (75% of $80,000)
$60,000
Town's proceeds ($357,800 + $60,000)
$417,800
Town's cost (seller's proceeds)
$182,200
Seller's proceeds
$182,200
Sale at Year 10
Assumptions
Average appraisal value/current appraised value
$675,000
Original market value
$500,000
Original purchase price
$142,200
Buyer benefit ($500,000-142,200)
$357,800
Permanent improvements
$20,000
Market appreciation
$175,000
Appreciation ($175,000-$20,000)
$155,000
Purchase by Town
Purchase by open market buyer
Average appraisal value/current appraised value (sales price)
$675,000
Town appreciation benefit (50% of $155,000)
$77,500
Buyer benefit
$357,800
Town appreciation benefit
$77,500
Town's proceeds ($357,800 + $77,500)
$435,300
Town's cost (seller's proceeds)
$239,700
Seller's proceeds
$239,700
[b] 
In the event a unit shall have depreciated in value as a result of market conditions or catastrophic loss, the buyer benefit lien and the Town appreciation benefit may be adjusted by the Town Board in its discretion.
[c] 
All funds received by the Town pursuant to the provisions of this Subsection J(2)(c)[2] above, shall be retained in the Community Housing Opportunity Fund, as a separate revolving account, and shall be expended only for the purposes of providing community benefit units in such manner as shall be determined by the Town Board.
(d) 
In the event the owner of such affordable housing or community benefit unit is in default with respect to any obligation under any lien encumbering the affordable housing or community benefit unit, the Town of Southampton shall refer the owner to a third-party counseling organization or to a mortgage insurer which will advise the owner on ways to meet his/her mortgage obligation. The owner authorizes the Town of Southampton to release information to such third-party counseling organization or mortgage insurer and requests that the counseling party make contact with such owner. The owner authorizes the third-party counseling organization or mortgage insurer to make a recommendation about appropriate action to take with regard to the owner’s mortgage loan, which may assist the lender in determining whether to restructure the loan or to offer other extraordinary services that could preserve the owner’s home ownership.
[Added 8-12-2008 by L.L. No. 50-2008]
(e) 
The conditions and procedures required to resell the dwelling units reserved for income-eligible households shall not apply in the following three instances. For all further and subsequent transfers of title the resale restriction shall apply.
[Added 8-12-2008 by L.L. No. 50-2008]
[1] 
When title is transferred by a court-appointed referee to a commercial bank, savings and loan association, credit union, savings bank, national bank, licensed funding company, licensed mortgage banker or the State of New York Mortgage Agency, its successors and or assigns (hereinafter referred to as "Insititutional lenders"), pursuant to the actual foreclosure of their mortgage lien or when the delivery of the deed is directly to such mortgagee by the defaulting mortgagor given in lieu of foreclosure; or
[2] 
When title is subsequently transferred by said foreclosing institutional lender to a third party; or
[3] 
When title is conveyed to a party by virtue of a deed issued by a referee naming it as the grantee pursuant to the foreclosure of a mortgage loan given by an institutional lender described in the preceding subsection.
K. 
Sustainable affordability.
(1) 
Unless prohibited by law, all units reserved for income-eligible households shall be encumbered with an affordability restrictive covenant. In the event a court of competent jurisdiction invalidates such affordability restrictive covenant for reason of its duration, then the unit so reserved for income-eligible households as a community benefit shall be deemed to be restricted to no less than 99 years and renewable upon transfer.
(2) 
Where a unit reserved for low- or moderate-income housing is restricted pursuant to a grant or subsidy from the federal government, State of New York or other municipal agency to provide low- or moderate-income housing consistent with the intent of this chapter, the Town may accept such restrictions in lieu of the restrictions set forth in this chapter.
L. 
Certificates of occupancy. All certificates of occupancy issued for dwelling units reserved for income-eligible households shall be endorsed with a notation that occupancy of such units is conditioned upon continued compliance with the provisions of Chapter 216, Housing for Income-Eligible Households; Community Housing Opportunity Fund, Chapter 330, Zoning, and all regulations and conditions promulgated thereunder.
M. 
Assessment. The encumbrance of an affordability restrictive covenant on real property and annotated on certificates of occupancy for dwelling units reserved for income-eligible households shall be taken into consideration by the Town Assessor in determining the assessments on such units.

§ 216-6 Community Housing Opportunity Fund established.

A. 
The Town Board hereby establishes a Town of Southampton Community Housing Opportunity Fund ("fund" or CHOF).
B. 
Deposits into the Community Housing Opportunity Fund may include revenues of the Town from whatever source determined to be appropriate by the Town Board based upon the advice of the Town Comptroller and Town Attorney, including but not limited to:
(1) 
All revenues from bonds approved pursuant to the Local Finance Law for the purpose of increasing affordable community housing opportunities;
(2) 
Appropriations of unreserved surplus or appropriated fund balances in accordance with the Town's surplus policy, including appropriations pursuant to Chapter 8, Budget. At no time, however, may there be an appropriation from the Town's contingency and tax stabilization reserve as set forth in § 8-5;
(3) 
Any proceeds received by the local government from the sale or rental of community housing produced from revenues of the fund;
(4) 
Repayment of any loans issued from proceeds of the fund;
(5) 
Any gifts of interests in land or real property or funds;
(6) 
Any county, state or federal grants received by the Town for providing community housing;
(7) 
Any future applicable transfer tax which may be enacted subsequent to the enactment of this legislation;
(8) 
Recaptured funds from previous Town housing initiatives and resales of units reserved for income-eligible households.
C. 
Interest accrued by monies deposited into the fund shall be credited to the fund. In no event shall monies deposited into the fund be transferred to any other account, without a majority vote of the Town Board.
D. 
Nothing contained in this section shall be construed to prevent the financing in whole or in part, pursuant to the Local Finance Law, of any project or purpose authorized pursuant to this chapter. Monies from the fund may be utilized to repay indebtedness or obligations incurred pursuant to the Local Finance Law consistent with effectuating the purposes of this chapter.

§ 216-7 Purposes of Community Housing Opportunity Fund.

A. 
The proceeds of the Community Housing Opportunity fund established pursuant to § 216-6 above shall be utilized to the extent permitted by law for the following purposes:
(1) 
The production of community housing for sale and resale to income-eligible households who work and/or live in the Town;
(2) 
The production of community housing for income-eligible households who reside year-round and work in the Town;
(3) 
The rehabilitation of existing buildings and structures in the Town for the purpose of conversion to community housing for sale or rental to income-eligible residents who reside year-round and/or work in the Town;
(4) 
The provision of no-interest or low-interest loans to income-eligible residents who reside year-round and/or work in the Town, for the purchase of a first home;
(5) 
The provision of housing counseling services by not-for-profit corporations that are authorized by the U.S. Department of Housing and Urban Development (HUD) to provide said services.
B. 
Community housing opportunities facilitated by the CHOF shall be subject to limited equity recapture provisions and long-term or perpetual affordability, to the extent allowable under the law.
(1) 
For ownership units, restrictive covenants will specify that resale prices shall be determined in accordance with the provision of this chapter.
(2) 
Affordability of housing shall be accomplished through the following: The Town of Southampton reserves the right to require that all housing units purchased or facilitated through the fund remain affordable as a community benefit for income-eligible households, except upon a majority vote of the Town Board by resolution. All properties purchased through the fund must be sold back to the fund for resale to income-eligible households who meet the qualifications of defined priority populations, in accordance with the provisions of this Chapter 216. Costs for permanent fixed improvements also shall be compensated, in accordance with the provisions of this Chapter 216.
C. 
For the purposes of this chapter, eligible expenses relating to the production of community housing and the rehabilitation of existing housing stock and structures under the Community Housing Opportunity Fund shall include, to the extent permitted by law, but not be limited to, land acquisition or other interests in real property, planning, engineering, construction costs and other hard and soft costs associated with development, rehabilitation, purchase or rental of housing pursuant to this section. All revenues received by the Town from the sale or rental of community housing or the repayment of loans shall be deposited in this fund.
D. 
The Town Comptroller shall provide an annual report to the Town Board to detail disbursements, proceeds, and a fund balance for the Community Housing Opportunity Fund.
[Added 5-12-2009 by L.L. No. 19-2009]

§ 216-8 Definitions.

As used in this article, the following terms shall have the meanings indicated:
AFFORDABLE WORKFORCE HOUSING
Housing for individuals and families at or below 130% of the median income for the Nassau-Suffolk primary metropolitan statistical area as defined by the Federal Department of Housing and Urban Development. For the purposes of this article, the affordable workforce housing units shall be of consistent design with those of the rest of the development.
DENSITY BONUS
A density increase of at least 10% over the otherwise maximum allowable residential density, or floor area ratio if part of a mixed-use development, under the applicable zoning ordinance and Comprehensive Plan as of the date of the application by the applicant to the Town. All density calculations resulting in fractional units shall be rounded up to the nearest whole number. The granting of a density bonus shall not require, in and of itself, a Comprehensive Plan amendment, zoning change, or other discretionary Town approval. The density bonus shall not be included as part of the calculation which determines the number of affordable units that constitute 10% of the total.
A. 
Where, pursuant to the above density bonus, four or more residential units are created, 75% of such units shall be filled by individuals meeting the moderate-income household thresholds set forth in § 216-2 herein; the remaining 25% of such units shall be filled by individuals meeting the middle-income household thresholds set forth in § 216-2 herein. For purposes of this article, "middle-income" households shall include those households whose gross annual income is greater than 80% but does not exceed 130% of the median gross income, according to the U.S. Department of Housing and Urban Development (HUD), for households of the same size within the housing region in which the housing is located, or as determined from time to time by Town Board resolution. These percentages may be modified by the Town Board, subject to changes in the actual need within the Town.
B. 
Where, pursuant to the above density bonus, less than four residential units are created, 100% of such units shall be filled by individuals meeting the moderate-income household thresholds set forth in § 216-2 herein. These percentages may be modified by the Town Board, subject to changes in the actual need within the Town.
LOCAL GOVERNMENT
Any village, city, or town within the County of Nassau or Suffolk acting pursuant to the provisions of this article.
VALID APPLICATION
A preliminary application for a subdivision or site plan subject to major review, or a final application for a subdivision or site plan subject to minor review, deemed complete by the Southampton Town Planning Board.

§ 216-9 Long Island Workforce Housing Program.

A. 
When the Town approves a subdivision plat or site plan for five or more residential units, or a mixed-use development that incorporates five or more residential units, except as otherwise provided in Subsection B of this section, the applicant shall receive a density bonus or other incentive pursuant to a written agreement between the applicant and the Town, and the Town shall require, at the Town's option, that the applicant:
(1) 
Set aside at least 10% of such units for affordable workforce housing on site; or
(2) 
Provide other land and construct the required affordable workforce housing units that are not part of the applicant's current subdivision plat or site plan, but which must be provided, on another site within the Town; or
(3) 
Pay a fee equal to two times the median income for a family of four for the Nassau-Suffolk Primary Metropolitan Statistical Area as defined by the Federal Department of Housing and Urban Development, for each additional unit which results, or would have resulted, from the density bonus, except that when such fee exceeds the appraised value of each lot resulting from such density bonus, then such fee shall be equal to the appraised value of the lot or lots, or the equivalent thereof, for each additional unit created by the density bonus.
(a) 
Where the Town requires that the applicant either construct affordable units off site or provide a fee in lieu of units as provided in Subsection A(2) and (3) above, the resultant units created pursuant to these options shall be located within the same school district as the applicant's initial development project, subject to compliance with the Town's Comprehensive Plan. The resultant units may be placed outside the same school district as the applicant's initial development project only after authorized by a duly adopted Town Board resolution and subject to compliance with the Town's Comprehensive Plan.
(b) 
Where the Town requires that the applicant provide a fee in lieu of units as provided in Subsection A(3) above, a duly noticed public hearing shall be held before the Town Board to consider any alternatives to such payment.
(c) 
All fees collected by the Town as provided in Subsection A(3) above shall, at the sole discretion of the Town, be:
[1] 
Deposited in a single trust fund under the control of the Town, to be kept in trust and separate and apart from all other monies, for the specific purpose of constructing affordable workforce housing, acquiring land for the purpose of providing affordable workforce housing, or rehabilitating structures for the purpose of providing affordable workforce housing. Unless otherwise prohibited by state law, the Town Board may also utilize such funds for the purpose of working with not-for-profit organizations to provide down payment assistance to eligible homebuyers. Pending expenditures from such trust fund, monies therein may be invested in the manner provided by law. Any interest earned or capital gain realized on the monies so deposited shall accrue to and become part of such trust fund; or
[2] 
Paid to another local government within Suffolk County pursuant to an intermunicipal agreement, to be kept in trust and separate and apart from all other monies of such other local government, for the specific purpose of constructing affordable workforce housing, acquiring land for the purpose of providing affordable workforce housing, or rehabilitating structures for the purpose of providing affordable workforce housing within such other local government. Pending expenditures from such trust fund, monies therein may be invested in the manner provided by law. Any interest earned or capital gain realized on the monies so deposited shall accrue to and become part of such trust fund; or
[3] 
Paid into a single trust fund under the control of the Long Island Housing Partnership (LIHP), to be kept in trust and separate and apart from all other monies of such partnership, 50% of which shall be used for the specific purpose of constructing affordable workforce housing, acquiring land for the purpose of providing affordable workforce housing, or rehabilitating structures for the purpose of providing affordable workforce housing within Suffolk County. The remaining 50% of such funds shall be used to provide down-payment assistance to eligible homebuyers who qualify for the existing Employer Assistance Housing Benefit Program administered by LIHP. The down-payment assistance funds shall be secured by a note and mortgage on the property purchased with such funds and shall be fully repaid to the fund by the recipient upon the sale or refinancing of the aforementioned property.
B. 
In determining which density bonus to utilize, that is, on-site housing, off-site housing, or payment in lieu of, the applicable Town agency, to wit, the Planning Board or the Town Board, shall first consider the recommendation of the Administrator of the Department of Land Management. When making said density bonus recommendation, the Department of Land Management Administrator, in consultation with the Town Attorney and Housing Director, shall ensure compliance with the Town's Comprehensive Plan, as well as applicable density incentives already articulated within the Code, such as the goals and objectives of § 330-9. In addition, the value of the resultant units; the true affordability of the resultant units, such as the associated common costs and fees for each unit; and applicant's preference for achieving the 10% density bonus shall also be among the factors considered when making said density bonus recommendation. Where the applicable Town agency chooses to offer a density bonus to an applicant different from that recommended by the Administrator of the Department of Land Management, said action must be achieved by a vote of a majority plus one of the Planning Board, or a majority of the Town Board.
C. 
The provisions of this article shall not apply when an applicant elects a lesser percentage than the maximum allowable residential density, or floor area ratio if part of a mixed-use development, under the Town's Zoning Ordinance and Comprehensive Plan in effect as of the date of the application by the applicant to the Town.
D. 
The Town shall ensure that all affordable housing units created pursuant to this article remain affordable. Thus, subsequent purchasers of such units shall have at the time of purchase, pursuant to the definition of "affordable workforce housing" herein, an income at or below 130% of the median income for the Nassau-Suffolk Primary Statistical Area as defined by the Federal Department of Housing and Urban Development.
E. 
Notwithstanding any discrepancies in the income ratios pursuant to §§ 216-2 and 216-8 herein, the policies and procedures of § 216-5 for placing individuals in the units created under this article shall govern.
F. 
Within six months of the establishment of a trust fund as set forth in Subsection A(3)(c)[1] and [2] of this article, the Town shall issue guidelines and policies which shall govern the expenditure of trust fund monies.
(1) 
In furtherance of the establishment of said trust fund, the Town may establish separate accounts within said trust fund to track the monies deposited into the fund by community planning areas, as described in the Town's Comprehensive Plan, with a goal towards reinvestment of said monies into the community planning area from which the monies originated. The Town Comptroller shall provide an annual accounting of the monies within each account. Consistent with the trust fund policies described herein, any interest earned or capital gain realized on the monies so deposited into each separate account shall accrue to and become part of such account.
G. 
Any monies that are not expended by the Town within three years from the date of such monies being collected shall be paid into a single trust fund under the control of the Long Island Housing Partnership, as set forth in Subsection A(3)(c)[3] of this article.
H. 
The Town may enter into intermunicipal agreements with any local government within the County of Suffolk to meet the purposes of this article.

§ 216-10 Mortgage counseling.

Persons purchasing affordable workforce housing created pursuant to this article, or who receive down-payment assistance pursuant to this article, must attend homebuyer education and mortgage counseling provided free of charge through the Long Island Housing Partnership.

§ 216-11 Applicability.

The provisions of Article II, Long Island Workforce Housing Act, of Chapter 216, as described herein, shall take effect January 1, 2009, provided that the provisions of Article II herein shall not apply to any development or project for which a valid application has been filed with the Town before such effective date.