Lawmakers Looking To Close 'Loophole' In Workforce Housing Act

SOUTHAMPTON, NY — With the need for affordable housing on the East End an escalating concern, lawmakers including New York State Assemblyman Fred Thiele and Southampton Town Councilwoman Christine Scalera are working to close a "significant loophole" they say has had a tremendous impact.

Scalera is working to close the loophole, which exists, she says, in the Long Island Workforce Housing Act.

The act, which was passed into law in New York State in 2008, requires developers with a plan for five or more residential units to provide affordable workforce housing, or offer a payment to the municipality to be used to create new affordable housing opportunities, Scalera said.

However, an exemption in the law allows many developers to avoid these requirements completely, Scalera maintains.

Under the law, any developer who chooses to build to less than maximum permitted density is exempt from all affordable housing requirements, she said.

For example, if a developer is permitted under zoning to build 30 units and builds those 30 units, he is required to provide three affordable housing units or the financial equivalent. However, if the developer opts to build 29 units, then the project falls under the exemption and does not have to accommodate any affordable housing units at all.

According to records maintained by the Southampton Town department of land management, since 2008 close to 90 percent of Southampton subdivisions subject to the Workforce Housing Act used the loophole to avoid the affordable housing requirement, a release said.

In all, the loophole cost the town 13 affordable units, 11 of which would have been placed east of the Shinnecock Canal — or more than $2.5 million in funding for affordable housing opportunities.

“The effects of this loophole have had a large impact in Southampton Town,” Scalera said. “To their credit, developers are only doing what the law permits them to do. It’s up to those of us in government to correct the problem.”

For years, the community has been crying out about the dearth of affordable housing in Southampton Town that's made it impossible for many to stay in town.

“It’s time we close this loophole and get these affordable units built,” Scalera said.

To that end, Scalera has introduced legislation removing the exemption from the town code but is looking to Albany for help.

“In order for this effort to have real impact, we need the state to join us in eliminating the loophole," she said, adding that Thiele has shown strong support.

"The lack of affordable housing is a significant issue facing the east end of Long Island," Thiele said. "Eliminating this loophole in the law will go a long way to expanding the inventory of affordable housing without adding additional burden to the taxpayers.”

He added, “While the intent of the Long Island Workforce Housing Act was laudable, there is no question that it has failed to deliver meaningful results. Local governments should not be hamstrung by this state law, but should have the flexibility to supersede the state where the result would generate additional workforce housing. This change in the state law would make it clear that local governments on Long Island will have full authority to meet the housing needs of its residents.”