[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:
The Town of Shelter Island Community Housing Fund Advisory
Board.
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.
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.
The Town of Shelter Island Community Housing Fund.
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.
The Town of Shelter Island Community Housing Plan.
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).
