[HISTORY: Adopted by the Town Board of the Town of Shelter Island 4-29-2022 by L.L. No. 7-2022. Amendments noted where applicable.]
As used in this chapter, the following terms shall have the meanings indicated:
BOARD
The Town of Shelter Island Community Housing Fund Advisory Board.
COMMUNITY HOUSING
A primary residential property for an eligible individual that does not exceed 150% of the purchase price limits established by the State of New York Mortgage Agency low-interest rate loan program in non-target categories for Suffolk County in effect on the contract date for the sale of the property.
ELIGIBLE INDIVIDUAL
A household with an income that does not exceed 100% of the income limits as established by the State of New York Mortgage Agency low-interest rate loan program in non-target categories for Suffolk County in effect on the contract date for the sale of such property.
FUND
The Town of Shelter Island Community Housing Fund.
FIRST TIME HOME BUYER
An eligible individual who has not owned a primary residential property and is not married to a person who has owned a residential property during the three-year period prior to his or her purchase of the primary residential property, and who does not own a vacation or investment home.
PLAN
The Town of Shelter Island Community Housing Plan.
PRIMARY RESIDENTIAL PROPERTY
Any one- or two-family house, townhouse, or condominium.
A. 
The Town Board hereby establishes a Community Housing Fund pursuant to the provisions of § 64-k(2) of New York State Town Law. Deposits into the fund may include revenues of the Town from whatever source, including, but not limited to:
(1) 
All revenues from the supplemental real estate transfer tax authorized by New York State Tax Law § 1449-bb(2);
(2) 
All proceeds of indebtedness or obligations issued pursuant to the New York State Local Finance Law for community housing opportunity purposes as authorized in New York State Town Law § 64-k(3);
(3) 
General fund balances or surpluses;
(4) 
Any proceeds received by the Town from the sale or rental of community housing produced from the revenues of the fund;
(5) 
Any gifts of interests in land or funds; and
(6) 
Any state or federal grants received by the Town for providing affordable homes.
B. 
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. Nothing contained in this chapter shall be construed to prevent the financing, in whole or part, pursuant to New York State Local Finance Law, of any purpose authorized pursuant to this chapter. Monies from the fund may be utilized to repay indebtedness or obligations incurred pursuant to the New York State Local Finance Law consistent with effectuating the purposes of this chapter.
A. 
The proceeds of the fund established pursuant to § 51-26 shall be utilized for the following purposes:
(1) 
The provision of financial assistance to first-time home buyers, who are residents of Shelter Island, for the purchase of a first home. Such financial assistance may be in the form of a grant or a loan subject to the below, as applicable:
(a) 
Financial assistance may be provided for the purchase of a new home to a first-time home buyer who is a resident of the Town or who is employed in the Town. A resident of the Town shall include a person who is currently a resident of the Town or a nonresident who has been a resident within the past five years.
(b) 
Such financial assistance shall not exceed 50% of the purchase price of the home.
(c) 
If such financial assistance is in the form of a loan, such loan shall be repayable to the Town pursuant to the terms agreed to between the recipient and the Town, provided that any loan shall be fully repaid by the recipient upon the resale of the home.
(d) 
For the purposes of calculating Town tax liability for such property, only, the dollar amount of any financial assistance for the purchase of a first home made by the Town pursuant to this section shall be subtracted from the full equalized assessed value of such property.
(e) 
All revenues received by the Town from the repayment of a loan shall be deposited into the fund.
(f) 
The Town may provide financial assistance for community housing in conjunction with a public/private partnership for employer-assisted housing.
(2) 
The actual production of community housing for sale to eligible individuals by the Town;
(3) 
The actual production of community housing for sale to eligible individuals in conjunction with a public/private partnership, where the private partner agrees to comply with the profit guidelines of the New York State Affordable Housing Corporation and the provisions of New York State Town Law § 64-k;
(4) 
The actual production and maintenance of community housing for rental to eligible individuals, either by the Town or if the Town creates a housing authority; or in conjunction with a private/public partnership, where the private partner agrees to comply with the profit guidelines of the New York State Affordable Housing Corporation and the provisions of New York State Town Law § 64-k;
(5) 
The rehabilitation of existing buildings and structures in Town for the purposes of conversion to community housing for sale or rental to eligible individuals;
(6) 
The acquisition of interests in real property in existing housing units, which result in the production of community housing for sale or rental to eligible individuals; and
(7) 
The provision of housing counseling services by not-for-profit corporations who are authorized by the United States Department of Housing and Urban Development to provide such services.
For the purposes of this chapter, eligible expenses relating to the production of community housing and the rehabilitation of existing buildings and structures under the fund shall include, but not be limited to, land acquisition, planning, engineering, construction costs, and other hard and soft costs directly related to the construction, rehabilitation, purchase, or rental of community housing pursuant to this chapter. All revenues received by the Town from the sale or rental of community housing, or the repayment of loans shall be deposited in the fund.
A Community Housing Fund Advisory Board was created, via Resolution No. 80 of January 7, 2022, to review and make recommendations regarding the Town's Community Housing Plan as required by § 52-6 and pursuant to the requirements of New York State Town Law § 64-k(6). The Board shall act in an advisory capacity to the Town Board.
A. 
Prior to expending any monies from the fund, the Town Board shall adopt a Community Housing Plan via local law, upon the advice and recommendations of the Town of Shelter Island Community Housing Fund Advisory Board. Such plan shall adhere to where practicable the following smart growth principles:
(1) 
Public investment: to account for and minimize social, economic, and environmental costs of new development, including infrastructure costs such as transportation, water, schools, recreation, and loss of open space and agricultural land;
(2) 
Development: to encourage development in areas where transportation, water, and sewage infrastructure are available or practical;
(3) 
Conservation: to protect, preserve, and enhance the Town's resources, including agricultural land, forests, surface waters, groundwater, recreation and open space, scenic areas, and significant historic and archeological sites;
(4) 
Coordination: to promote coordination of state and local government decisions and cooperation among communities to work toward the most efficient, planned and cost-effective delivery of government services by, among other means, facilitating cooperative agreements among adjacent communities, and to coordinate planning to ensure compatibility of one's community development with development of neighboring communities;
(5) 
Community design: to strengthen communities through development and redevelopment strategies that include integration of all income and age groups, mixed land uses, and compact development, traditional neighborhood development, planned unit development, open space districts, downtown revitalization, brownfield redevelopment, enhanced beauty in public spaces, and diverse and community housing in close proximity to places of employment, recreation, and commercial development;
(6) 
Transportation: to provide transportation choices, including increasing public transit and alternative modes of transportation, in order to reduce automobile dependency, traffic congestion, and automobile pollution;
(7) 
Consistency: to ensure predictability in building and land use codes; and
(8) 
Community collaboration: to utilize, through a collaborative community-based effort, smart growth plans that include long-term land use and permit predictability and coordination, efficient decisionmaking and planning implementation.
B. 
The plan may include a map that delineates the housing implementation recommendations, but shall:
(1) 
Be updated every five years;
(2) 
Be incorporated into the Comprehensive Plan for the Town of Shelter Island;
(3) 
Ensure that all community housing created remains affordable. Subsequent purchasers of such community housing shall be limited to eligible individuals; and
(4) 
Provide for the equitable distribution of community housing opportunities among all of the communities of the Town. The plan shall ensure that no community has an undue concentration of community housing opportunities that would substantially alter the character of the community. In determining equitable distribution of community housing opportunities, existing community housing opportunities in a community shall be considered.
A. 
The participation of any village in the production of community housing authorized by this chapter shall be at the option of the village. In order to participate, a village shall pass a resolution opting into the program and shall submit said resolution to the Town Board.
B. 
Where a village opts to participate pursuant to this chapter, an intergovernmental agreement shall be executed pursuant to Article 5-G of the New York State General Municipal Law or other applicable legal authority, in order to establish the rights and responsibilities of each local government regarding community housing opportunities.
C. 
Regardless of whether a village participates in the program authorized by this chapter, properties in the village shall be subject to the supplemental real estate transfer tax authorized by New York State Tax Law § 1449-bb(2).