[HISTORY: Adopted by the Town Board of the
Town of Southold 5-18-2004 by L.L.
No. 12-2004. Amendments noted where applicable.]
[Amended 11-20-2018 by L.L. No. 13-2018]
The Town of Southold Housing Fund will provide the Town with
a mechanism to obtain funding and create programs that will increase
housing opportunities for families and individuals who cannot procure
affordable housing within the Town.
A.Â
The
lack of affordable housing creates many adverse effects for the Town.
Regional employers grapple with the task of hiring and retaining employees
due to the limited availability of affordable housing. Recruiting
and retaining essential personnel (police officers, firefighters,
teachers, nurses, etc.) has become increasingly a challenge due to
the lack of affordable housing. Volunteer emergency services are also
impacted by the lack of affordable housing, prompting the possible
necessity of replacing volunteer services with paid employees. While
the Town has benefited from increased tourism and second homeownership,
it must also sustain a population who can afford to live and work
in Town. Therefore, preference will be given to candidates of affordable
housing engaged in volunteer services as firefighters and/or other
first responders, provided that such housing is located within the
boundaries of the area served by the firefighter/first responder.
As used in this subsection, "firefighter" shall mean a person who
is duly certified and trained to engage in firematic services and
has performed such services in the County of Suffolk in good standing
for the three-year period immediately prior to qualification; "first
responder" shall mean a person who is licensed and trained to provide
emergency medical services and who has actively provided such services
in the County of Suffolk in good standing for the three-year period
immediately prior to qualification. Any such firefighter/first responder
must maintain good standing at all times to maintain minimal qualifications
for such housing status.
[Amended 7-18-2023 by L.L. No. 16-2023]
B.Â
To
address this housing shortage, the Town of Southold must create a
myriad of housing initiatives that lead to the creation of affordable
housing. The talented and vibrant energy that was and is invested
in community land preservation must be replicated to create affordable
housing for a sizable number of individuals and families who lack
the financial means to rent and/or purchase housing within the Town.
[Amended 11-20-2018 by L.L. No. 13-2018]
C.Â
Efforts
in the past to create affordable housing have failed in their ability
to keep the housing stock affordable upon resale. Therefore, to promote
perpetual affordability within the Town, all recipients of said housing
will be legally bound to sell their properties to the Town's Housing
Fund. Resale price formulas for homes purchased from the Fund will
be as follows: Homes sold after purchase will realize profits that
are the equivalent percentage of the Consumer Price Index (CPI) as
compiled by the United States Department of Labor. The percentage
will be calculated from the date of sale from the Fund to the date
of resale to the Fund. In addition, the Fund will compensate the seller
for major capital improvements that ·are approved in advance
by the Housing Advisory Commission. Depreciation may be applied to
capital improvements.
[Amended 11-20-2018 by L.L. No. 13-2018]
As used in this chapter, the following words and terms shall
have the following meanings:
The Town of Southold Housing Fund authorized pursuant to
this chapter.
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 value as determined by the Town's assessment rolls, without
benefit of subsidies or special financing programs from the Town in
the case of owner-occupied housing, or in the case of rental housing,
as housing for households whose income is insufficient to pay the
monthly costs for such housing and maintain such costs within the
required percentages of the household's income based upon banking
industry standards.
Those individuals/families whose incomes are below the designated
percentage of the HUD median income for the County of Suffolk, as
determined by the Southold Town Board. In addition, individuals/families
seeking grant assistance and loans from other public funding sources
may be limited to household incomes less than the HUD median income
for the County of Suffolk.
[Amended 11-20-2018 by L.L. No. 13-2018]
The Town of Southold.
A.Â
The Town Board hereby establishes a Housing Fund.
Deposits into the Fund may include revenues of the Town from whatever
source, including but not limited to:
(1)Â
All revenues from a bond approved pursuant to the
local finance law for the purpose of increasing affordable community
housing opportunities;
(2)Â
General fund balances, or surpluses, in accordance
with the Town's surplus policy;
(3)Â
Any proceeds received by the local government from
the sale or rental of community housing produced from revenues of
the Fund;
(4)Â
The repayment of any loans issued from proceeds of
the Fund;
(5)Â
Any gifts of interests in land or funds;
(6)Â
Any County, state or federal grants received by the
Town for providing community housing;
(7)Â
Any future applicable transfer tax which may be enacted
subsequent to the enactment of this legislation;
(8)Â
Recaptured funds from previous Town housing initiatives.
B.Â
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.
C.Â
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.
D.Â
No interest or right in real property shall be acquired
pursuant to this chapter until a public hearing has been held before
the Town Board, and a resolution has been passed approving the acquisition.
However, nothing shall prevent the Town Board from entering into a
conditional purchase agreement before a public hearing is held.
E.Â
No expenditure shall be made pursuant to this chapter
until a public hearing has been held before the Town Board, and a
resolution has been passed approving the expenditure.
F.Â
Any acquisition or expenditure made pursuant to this
chapter shall include a finding that it is being authorized in furtherance
of the goals set forth in this chapter.
A.Â
The proceeds of the Fund established pursuant to § 34-4 shall be utilized in accordance with law for the following purposes:
[Amended 11-20-2018 by L.L. No. 13-2018]
(1)Â
The provision of no-interest or low-interest loans to income-eligible
individuals or families for the purchase of a first home;
(2)Â
The actual production of community housing for sale and resale to
income-eligible individuals or families;
(3)Â
The actual production of community housing for sale to income-eligible
individuals or families in conjunction with other public/private partnerships
such as the North Fork Housing Alliance and the Community Land Trust
of Southold;
(4)Â
The actual production and maintenance of rental housing for rent
to income-eligible individuals or families or in conjunction with
public/private partnerships who agree with the stated profit guidelines;
(5)Â
The provision of no-interest or low-interest loans to developers
for the production of community housing for sale to income-eligible
individuals or families for the purchase of a first home or for rent
to income-eligible residents.
(6)Â
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 individuals or families;
(7)Â
The provision of housing counseling services by not-for-profit corporations
that are authorized by the U.S. Department of Housing and Urban Development
to provide said services;
(8)Â
The Fund will ensure the perpetual affordability of housing through
determining resale prices of any home purchased through the Fund.
This will be accomplished through the following: The Town of Southold
reserves the right to require that all housing units purchased through
the Fund remain affordable in perpetuity. All properties purchased
through the Fund must be sold back to the Fund for resale to income-eligible
individuals/families who meet the qualifications of defined priority
populations. After purchase, homes may be resold to the Fund to potentially
realize a profit. Sale prices will be calculated at the original purchase
price (base price) and shall be adjusted by a percentage which is
the same as the percentage by which the Consumer Price Index (CPI)
increased between the date that the buyer took title to the property
and the date that a letter of intent is submitted to the Fund to resell
the property. Costs for capital improvements approved by the Fund's
regulations may also be compensated. Capital improvements are additions
that provide value to the property above and beyond repairs to maintain
the property in good condition. The Housing Advisory Commission must
approve in advance all capital improvements. The Commission must be
given information regarding the scope of work and estimate of capital
costs. If capital improvements are approved, the Commission will determine
if the capital improvement may be recouped in the event of resale.
(9)Â
The Housing Fund will strive to build housing and sell housing that
reflects the diverse needs of those seeking affordable housing that
includes household income, bedroom size, etc.
B.Â
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 Fund shall include, but not be limited to,
land acquisition, planning, engineering, construction costs and other
hard and soft costs associated with construction, rehabilitation,
purchase or rental of housing pursuant to this section, provided that
these costs do not exceed 15% of the projected project costs. Litigation
expenses may not be covered by this Fund. All revenues received by
the Town from the sale or rental of community homes or the repayment
of loans shall be deposited in this Fund.
A.Â
The
Town Board hereby formally establishes a Housing Advisory Commission
to review and make recommendations regarding the Town of Southold
Housing Fund. This Commission would supplant the efforts of the former
Affordable Housing Committee that no longer meets as a working group.
This Board will consist of 7 residents of the Town who shall serve
without compensation. No member of the Town Board shall serve on the
Commission. The Commission shall reflect a diverse membership, with
individuals from various geographic locations. In addition, membership
will include a broad representation from the community, such as landowners,
persons with skill and knowledge about the environment, real estate,
banking, building and farming. The Commission may also seek members
who were/are recipients of housing assistance.
[Amended 7-2-2019 by L.L.
No. 10-2019]
B.Â
The Government Liaison Officer for affordable housing
will assist the Commission with administrative tasks, such as scheduling
meetings, transcribing minutes, etc. The Commission should meet at
a minimum of once a month. The primary functions of the Commission
are to:
[Amended 5-3-2016 by L.L.
No. 4-2016]
(1)Â
Ensure that an efficient, cost effective and expedient
production of affordable housing is created and maintained.
(2)Â
Serve as a liaison for community members within their
respective hamlets/villages regarding affordable housing.
(3)Â
Identify appropriate sites for the development of
affordable housing within respective hamlets/villages.
(4)Â
Approve capital improvement requests from residents
living in housing units.
(5)Â
Make recommendations to the Town Board relating to
affordable housing.
C.Â
The Housing Advisory Commission shall assist the Town
Board in the development of a Housing Implementation Plan. The Housing
Implementation Plan is:
(1)Â
Public investment: to account for and minimize social,
economic, cultural and environmental costs of new development, including
infrastructure costs and loss of open space and agricultural land.
(2)Â
Development: to encourage development in areas where
infrastructure exists (i.e., parking, public water, etc.), primarily
within defined hamlet and halo zones.
(3)Â
Conservation: to protect, preserve and enhance the
Town's natural resources including farmland, forests, surface water,
groundwater, recreation and open space.
(4)Â
Coordination: to promote coordination of state and
local governments to facilitate cooperative agreements amongst adjacent
communities in the interest of ensuring compatibility of community
development.
(5)Â
Community design: to strengthen communities through
the utilization of all income and age groups, mixed land use, compact
development, open space districts, planned unit development, and diverse
and community housing in close proximity to places of employment,
transportation, recreation and commercial development.
(6)Â
Consistency: to insure predictability in building
and land use codes.
(7)Â
Community collaboration: to encourage a collaborative
community-based effort for implementation of community housing that
includes long-term land use.
D.Â
Such plan may include the creation of maps that define
the Housing Implementation Plan's recommendations proposed by the
Town.
E.Â
The plan will not be adopted until after the Town
Board has held a public hearing. The plan shall be updated at least
every five years. The plan shall be adopted before monies may be expended
from the fund.
F.Â
The Housing Implementation Plan shall also assist
with guidance in establishing income and other eligibility requirements
for community housing, including any eligibility preference that may
be given based upon residency or other criteria (e.g., those persons
who provide volunteer emergency/life saving services for residents
of the Town). The sale and resale of community housing to the general
public for other than income eligible priority populations is prohibited.