Thiele Introduces Legislation to Help Residents Obtain Housing in Peconic Bay Region

Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) recently introduced legislation that would authorize the towns of East Hampton, Riverhead, Shelter Island, Southampton, and Southold to create dedicated Workforce Opportunity Funds to assist local residents with obtaining housing in the Peconic Bay Region.

The fund would allow for the provision of no-interest loans of up to $250,000 towards the purchase of a home, the
acquisition of legal restrictions that would set aside existing housing stock for workforce housing and the provision of housing counseling for local residents, according to a press release from Thiele’s office.

Under this legislation, any loan for affordable housing would be repayable upon the subsequent resale of the house in an amount equal to the proportion of the original loan to the original purchase price, according to the release.

For example, if the fund provided a $200,000 loan towards the purchase of a $600,000 house, and if the house was
resold 10 years later for $900,000, a third of the resale price or $300,000 would be paid back to the Town at the time of the resale, which would be returned to the Fund.

The Fund would be financed by a workforce housing impact fee of $10 per square foot for all residential construction where the total floor area of the dwelling exceeds 3,000 square feet, according to the release.

For example, if a 7,000 square foot house was constructed, the fee for the building permit would include a surcharge of $40,000 which would go to the Fund.

Town residents at 120% of median family income or less would be eligible for the loan program.

In 2015, 120% of median income in Suffolk County is $130,800.

In order to enact the Funds, each Town would be subject to a mandatory referendum.

“The adverse impacts from the lack of housing opportunities are substantial,” Thiele said. “Local employers have difficulty hiring and retaining employees because of housing costs and availability. Local volunteer emergency services agencies experience difficulty in recruitment and retention. Longtime residents are forced to leave the area. Traffic congestion is exacerbated by the importation of labor from areas with lower housing costs.

The unique demographics and economics in the Peconic Bay region are creating this housing shortage.

The combination of the Peconic Bay region’s attractiveness, proximity to the dense population of the New York metropolitan region, and proximity to that region’s extraordinary wealth, makes the Peconic Bay region a prime location for seasonal and luxury homes.

While this combination of extraordinary attractiveness, population and wealth has created a strong local economy for the Peconic Bay region, it has resulted in housing problems for local families, according to the release.

In the Peconic Bay area, 40% of all housing units are seasonal.

The population of the region increases from 130,000 to more than 300,000 during the summer season.

The demand of land for luxury and seasonal homes and seasonal rentals has left a short supply of housing opportunities for moderate income and working class local residents.

According to Thiele, the Peconic Bay region needs a balanced housing policy where there exists a variety of housing types and opportunities across the region’s economic spectrum.

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