July 14, 2022 The 5 East End towns were given a new law providing an opportunity for a 1/2% transfer tax dedicated to affordable housing in addition to the 2% to preserve land . This could put several million in Southold’s coffers if voted on in November. A consultant has been hired by the Town to develop an affordable housing study, a plan to spend the money and will public outreach meetings prior to the November vote. It can be used for many different things and until a plan is finalized would not be spent. Encourage the Town Board not to let this opportunity pass another year—waiting to get it just right. We might wind up being the only town that didn’t jump on this windfall.
On March 13th Tom Ruhle, Director, Housing & Community Development, East Hampton and Tanya Palmore, North Fork Housing Alliance, Greenport spoke to an engaged audience in Holy Trinity’s meeting room. In addition to Greenporter residents, attendees including two Village Trustees, a Southold Town Board member and Land Preservation expert, representatives from East Marion Community Assoc. and Southold/Peconic Civic plus Shelter Island’s Affordable Housing Taskforce.
Why now? The crisis caused by escalating housing and rental prices threatens to drive out all but the wealthy leaving a decimated workforce and no volunteers as EMTs or fire fighters. Also a new opportunity to pass a local law in November that would allow 1/2% transfer tax on the sale of each house over $400,000. If passed the funds could be spent on many ways to address Affordable Housing. The new law for the Peconic Bay Region is modeled upon the successful 2% transfer tax for open space.
The Southold Town Board agreed to move forward with an RFP to hire a consultant to create the required plan that must be ratified before spending the monies. A Community Housing Board must also be appointed to receive and spend the monies.
Bullet Points from March 13th:
For East Hampton it took three entities to create what Tom Ruhle said were 700 units. Tanya Palmore oversees the third below. For Southold they would be:
1. New Government: Create a new Community Housing Board to administer the additional transfer tax fund and other funding sources. Currently there is a Housing Advisory Committee and no staff person. The Board could be supported by an Office of Rentals and Housing or Economic Development and Housing. The office could coordinate rental permits, track housing needs, coordinate with Town Board and other partners. It would be funded by a new 1/2% transfer tax. It could track progress and need, reporting monthly on numbers of units by type and household income as well as status whether: Planned, in design, under construction, occupied and turn-over. They would administer the Community Housing Fund with authority to hire staff, authorize loans and grants from the Community Housing Fund. They would maintain lotteries for new home purchases.
2. New Affordable Housing Authority: A new Town Board-appointed Authority could create and manage rentals and home ownership programs as well as work with private developers on Town leased lands to build and manage others. They would ensure a high quality of design and compatibility with its surroundings and neighborhoods. The Authority could issue tax-free bonds. Would provide a professional entity to manage projects, evict tenants when necessary without politicization.
3. Non-Profits: North Fork Housing Alliance now oversees 200 of Southold’s Section 8 vouchers and owns 50 rentals in Greenport. They are the HUD certified housing counseling agency for all of eastern Suffolk County. They provide training for new home buyers, provide loans or grants to bring dwellings up to standards conditions, They offer advise on loan programs, referrals for emergency eviction assistance and other services. Other non-profit developers would be included in this category.
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