The East Hampton Town Board reviewed a series of proposals on March 17 that they said were aimed at increasing housing opportunities for year-round residents and the local workforce, including updates on a proposed affordable housing development, potential improvements to the Town’s accessory dwelling unit program, and new housing concepts connected to local employment.
“Housing affordability is one of the defining issues facing East Hampton,” said Town Supervisor Kathee Burke-Gonzalez. “When teachers, healthcare workers, municipal employees, and local business staff cannot find housing in the communities they serve, it affects the entire Town. That is why we are evaluating a range of approaches, including accessory apartments, workforce housing concepts, and new affordable housing development.”
Workforce Housing Ideas
The Board also reviewed new approaches to addressing workforce housing needs, including a proposal that would allow local businesses to provide housing for their employees.
The Board reviewed a draft local law addressing accessory staff housing, which would allow employers to provide on-site housing for employees on certain properties through a special permit process, subject to zoning requirements and Suffolk County Department of Health Services approval. The Board said the proposal is intended to create a practical pathway for businesses to help house their workforce locally, with rents capped in accordance with the Town’s affordable housing unit definition and occupancy limited to employees of the business.
The Board also discussed a more limited concept for rent-restricted employer-sponsored housing, which could be permitted within the Town’s Affordable Housing Overlay District and Limited Business Overlay District through a special permit process. Under that concept, housing units would be reserved for employees of the sponsoring employer, with rents limited to no more than 130 percent of fair market rent and managed by an approved third-party property manager.
Accessory Dwelling Unit Initiatives
Several items discussed during the work session focused on the Town’s Accessory Dwelling Unit program.
The Town Board reviewed potential code changes following a public hearing earlier this month. According to the Planning Department, the proposed amendments are intended to reduce barriers that may limit participation in the program while maintaining existing program safeguards, including the cap of 40 units per school district and 200 units townwide.
The Board also reviewed a proposal from the Office of Housing and Community Development to establish a Community Housing Fund pilot program to help finance the construction of ADUs. The proposal would provide up to ten interest-free loans of up to $100,000 to eligible property owners. In exchange, the accessory apartment would be required to remain a year-round affordable rental for a minimum of ten years under the Town’s ADU program guidelines.
Town officials also discussed whether East Hampton could adopt a property tax exemption for ADUs authorized under New York State Real Property Tax Law. A memorandum prepared for the Town notes that East Hampton’s existing ADU regulations do not prevent the Town from adopting such an exemption by local law.
Route 114 Affordable Housing Project
The Board received an update on the proposed affordable housing development on Route 114, including a market assessment and feasibility analysis prepared through the Long Island Forward Housing Program. The study examines year-round housing conditions in the study area, including limited rental inventory, high home values, and low vacancy rates, along with the role seasonal housing patterns play in the local market.
Recent Housing Initiatives
The proposals discussed during the work session build on several steps the Town has already taken to expand housing opportunities for year-round residents, including:
- Becoming the first town on Long Island to receive New York State’s Pro-Housing Community designation.
- Transferring approximately 6.5 acres to the East Hampton Housing Authority for the Route 114 affordable housing development, which will add up to fifty moderate-income rental units.
- Securing more than $3 million in State Pro-Housing Supply funding to support water and wastewater infrastructure needed for the Route 114 project, with matching funds from the Community Housing Fund for a total of $6.34 million.
- Celebrating the ribbon cutting of The Green at Gardiner’s Point, creating fifty affordable apartments for working families, seniors, and young residents.
- Committing $1.5 million in Community Housing Fund resources to preserve four rental units in Sag Harbor for year-round residents.
- Expanding housing programs, including ADUs and the First-Time Homebuyer Down Payment Assistance Program, which provides interest-free assistance of up to $30,000 to qualifying buyers.