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HomeMy WebLinkAbout8_Housing Final 5-16-2019 RedLine Southold Town Comprehensive Plan Update This document was prepared for the New York State Department of State with funds provided under Title 11 of the Environmental Protection Fund. Housing DraftFinal April 2, 2012 Updated February 23May 16, 2019 HOUSING 1 Introduction This chapter discusses the current conditions regarding the housing sector in Southold Town and provides goals and objectives for the sector. Currently, Hhousing in Southold Town consists mostly of single-family homes occupied by the homeowners. According to the 2010 Census, there are 14,186 homes in Southold Town. Of those, onlyLess than 10 percent% of the housing stock isare available for rent year-round, compared with 21 percent in Suffolk County overall (see Table 1). Home prices are out of reach for many people, and the rental inventory is very low. An important aspect of the housing characteristics of Southold is thatIn addition, a large percentagenumber— 5,217, or 37% percent—, of the housing stock consists of second homes for seasonal and occasional use. These factors combine to produce is together with the vacation rental business are major factors in thethe area’s high home prices and the lack of availablelow inventory of year-round rentals. Nearly 58 percent of the homes in Southold Town are occupied by the owner or renter year- round. Table 1. Existing Housing Inventory: 2010 U.S. Census Data Total number of housing units 14,186 Year-round housing units – owner occupied 6,847 Year-round housing units – renter occupied 1,423 Seasonal housing units 5,217 Other Housing Characteristics from collected data Senior housing – cooperative units Peconic Landing 345 and Colonial Village 44 389 Senior housing – condominium units Founders Village: 92, Pheasant Run: 60) not including Harvest Pointe 124 units approved & under construction 152 Section 8 number of subsidies 370 Moderate-income subsidized home ownership The Cottages at Mattituck 22 Special-needs housing: Developmentally/mentally disabled 10 Housing Southold Town Comprehensive Plan Update 2 Recovery House “sober home” serving up to 10 people 1 Homeless Shelter provided in winter rotating the shelter among participating churches – serving up to 70 people per night 1 Housing Southold Town Comprehensive Plan Update 3 Background Housing Costs and Housing Affordability Southold has long been a destination for second-homeowners and retirees due to its rural character and plentiful recreational opportunities. The buying power of the second and retirement home purchasers has been a major factor in driving up home prices. From 1990 to 2005, single-family homes in Southold tripled in price, as measured by median sales, and far outstrippinged the increase in the median income for Southold residents. Low inventory, especially of homes on the lower end of the price range is another relatedalso a problem and c. Contributing to this low inventory, as well as to the high cost of real estate, is the business of vacation rentals. This business model is based on homes purchased expressly for the purpose ofto renting them out for short- term vacations using websites such as AirBnB and VRBO.com. And although home prices fell significantly during the Great Recession, the 2017 median sales price for a home was higher than ever before, pushing home ownership beyond the reach of many residents. The federal Department of Housing and Urban Development (HUD) considers housing to be “unaffordable” if housing costs are greater than 30 percent% of total household income. The American Community Survey 2012–-2016 Five Year Estimate (ACS) found the following for Southold Town:  Almost 50 %percent of renters pay >30% percent of their income on housing*  Over 30% percent of homeowners pay >30% percent of their income on housing* These statistics show Tthat some peopleresidents are over-extending themselves to live in Southold. is to be expected given that Tthe median sales price of a homes in 2017 reachedwas $565,000 (Suffolk Research Service Inc.),. Thata figure that surpassed even the pre-recession high of $525,000 in 2007 and which is the highest median sales price in the past eleven 11 years. According to the ACS, median income for all households in the Town of Southold was $81,158. Generally, a household with that income could afford to pay no more than $202,900 for a home (or carry a mortgage no greater than that amount). So half of the households in Southold – households earning less than the median - would fall under that $202,900 ceiling, when today’s median home value for the Town is twice that ($565,000), and with very few homes on the market sell for less than $300,000. Many Southold families could not afford their present home if they had were to buy it at today’s prices. This underscores the ongoing discrepancy between local incomes and housing prices. The Lack of Affordability Southold Median Income (U.S. Census American Community Survey 2012-2016 5-year estimate) Affordable House (2.5 x Median Income) Southold Median Home Price (Suffolk Research Service 2017) $81,158 $202,900 $565,000 Housing Southold Town Comprehensive Plan Update 4 Housing Needs and Challenges Safe and, affordable housing is vital to a community’s stability and growth. and Increasing the amount of affordable housing to help sustain its year-round residents is a goal of the Town has been working towards increasing the amount of affordable housing to help sustain its year-round residents. Less Fewer than 10% percent of the housing units counted in the 2010 Census were year- round rentals. In addition to the scarcity of market-rate rental housing, the subsidized rental housing units administered by the North Fork Housing Alliance have remained stagnant through the years, despite the rising number of residents needing rent subsidies to afford to remain in their communities. Safe and affordable housing is also needed for the vulnerable citizens in our population. Seniors, people with special needs, people in recovery from substance abuse, and the homeless may need subsidized housing options. Table 2 show the number of residents currently in need of these options. Table 2. Other Housing Characteristics from collected data Senior housing – cooperative units Peconic Landing 345 and Colonial Village 44 389 Senior housing – condominium units Founders Village: 92, Pheasant Run: 60) not including Harvest Pointe 124 units approved & under construction 152 Section 8 number of subsidies 370 Moderate-income subsidized home ownership The Cottages at Mattituck 22 Special-needs housing: Developmentally/mentally disabled 10 Recovery House “sober home” serving up to 10 people 1 Homeless Shelter provided in winter rotating the shelter among participating churches – serving up to 70 people per night 1 Changes to the Town Code have been made over the years as experience has demonstrated where improvements were needed. For example, the Affordable Housing Zoning District has a requirement that housing units constructed in that zone have a perpetual cap on the maximum sales price or rental price to keep them affordable. The first Affordable Housing Districts developed prior to this requirement did not remain affordable as the houses have been sold and resold. Additional changes included a Town housing registry created to help match people in need with affordable housing. To be eligible for the Town’s housing registry, the total household income Housing Southold Town Comprehensive Plan Update 5 cannot exceed the median income for Nassau-Suffolk Counties (2018 Nassau-Suffolk median income for a family of four = $116,700). When the registry was established, few applications came in until a developer/sponsor proposed building 22 units (The Cottages in Mattituck, partly funded by Suffolk County), priced at $178,000 to $214,000 for two-bedroom homes. When these units were advertised, more than 350 applications flooded in, and the registry list swelled to more than 400 applications on file, 90% percent of which were from Southold residents. Although there were 400 people on the housing registry, many of them could not afford the down payment, nor could they qualify for a mortgage. This highlighted the large unmet need in the Town for year-round rental housing for people that were making too much for subsidies, but not enough to buy a home. In other words,This includes apartments for households making between $70,000 and $116,700 (60-100% percent of the median income), or what the Town Code refers to as “moderate income families.” Theis need for rentals, together with the community’s wishes to retain the community character brought about a series of code changes to help spur homeowners and businesses to create accessory apartments, and to incentivize developers to create small apartment developments. These code changes were also in line with the community’s desire to retain community character. Homeowners are allowed to create accessory apartments in their homes and can rent them out at market rate. They can also create accessory apartments in existing accessory structures (e.g., converting a detached garage to an apartment) for rent to family members or to income eligible tenants at affordable rates. The rules for apartments in commercial buildings were loosened, including allowing all-residential apartment buildings in commercial zones. The allowable density and minimum size of affordable apartment developments in the Affordable Housing District were adjusted to allow more apartments of smaller size. The Town also maintains a Sanitary Flow Credit bank, which allows a developer to buy low-cost credits to add one or more affordable apartments to a commercial building where they would otherwise not be allowed to by the Suffolk County Department of Health. Another longstanding code requirement has been inclusionary zoning, which states that up to 20% percent of any new subdivision over five lots must be made affordable or the developer can choose to opt out by paying into the Town Housing Fund. These changes have seen some limited success. Since 2004 there have been 27 accessory apartments approved by the Town’s Zoning Board of Appeals, and one new affordable apartment and one market rate apartment in a commercial building. Inclusionary zoning for subdivisions has brought in nearly a half a million dollars to the Housing Fund in 2017. And changes to the housing registry process that made it simpler for future landlords have enabled other rental projects to move forward. Availability of affordableility of housing for full- time residents, especially workers, is a serious problem. High housing costs will ultimately result in an ongoing decline in year-round residents, young people, and families in the area. The diminishing representation of year-round residents and young families will have an impact on our community overall, and more specifically on local employers, school enrollment, and staffing of local volunteer efforts such as the all-volunteer fire departments. Housing Southold Town Comprehensive Plan Update 6 The quality and upkeep of housing is a related issue. Southold has largely been spared neighborhood blight, yet rundown blighted housing conditions does occur. If such conditions are ignored, it they can lead to lower property values and damage quality of life for neighbors. Overcrowding and other unsafe conditions are another form of neighborhood blight, whichand also endangers tenants. Continued efforts to help meet the need for safe, attainable housing are necessary. The following are goals towards this end. Housing Southold Town Comprehensive Plan Update 7 GOALS AND OBJECTIVES 1. Create Affordable Housing The Town needs to take a hard look atreview the“ adaptive reuse” of existing housing stock and commercial structures, – i.e., renovating them - as a way to increase the housing inventory without harming the visual landscape. Additionally, a zoning analysis could be conductedof the feasibility of to allowing for infill development (insertion of additional diversified housing units into an already approved subdivision or neighborhood) in areas capable of absorbing more density such as the hamlet centers and HALO’s, e.g., additional housing units into an existing neighborhood could be conducted. The need for additional housing must be met if Southold is to maintain a vibrant workforce large and varied enough to serve year-round residents and seasonal visitors. Though Southold, like most places, mainly relies on private enterprise to supply housing, the Town does have within its control a variety of ways to influence the development of housing. The following are necessary requirements that must be satisfied in order to create affordable housing in any significant number (more than five units):  Support of the Town Board and Planning Board for the proposed concept (location of site, architectural design, proximity to hamlet centers, infrastructure, etc.)  Availability of grants, based on income, from federal and state entities that subsidize homeownership for qualified buyers.  Change of zoning designation by the Town Board to Affordable Housing District (AHD) in appropriate areas to permit the higher density allowed by that district.  Transfer of sanitary flow credits in accordance with Suffolk County Department of Health and Southold Town regulations.  Assistance from Suffolk County Department of Workforce Housing toward the purchase of land or infrastructure improvements.  Provision of public services (utilities) and infrastructure (water, drainage, roads) to support the development of housing.  Ability of the sponsor or developer to make a subsidized project financially viable (tax abatements through New York State) while keeping the housing affordable; to achieve enough density (via rezoning) and subsidies to make it worthwhile. In addition, the Town has implemented legislation and policies intended to increase affordable housing, including the following:  “Inclusionary” zoning that requires new developments of five or more housing units to provide 20% percent of that the potential number of housing units as affordable.  A “buyout” option was created for developers who choose not to build affordable units within the new development allowing developers the ability to make a substantial payment to the Town’s Housing Fund. Each year the Town Board establishes an amount that developers must pay in lieu of building the moderate-income family dwelling unit. The buyout amount is currently set at twice the amount of the median income of a family of four for Nassau/Suffolk County per unit required and not constructed. Housing Southold Town Comprehensive Plan Update 8  “Perpetual affordability” for affordable housing units that come for resale. These restrictions limit how much the seller can ask, to prevent the units from rising to market rate after subsidies have expired.  Higher densities for affordable apartments in the Affordable Housing DistrictAHD.  Amendments to the housing registry process to improve the ability of landlords owners of affordable apartments to choose eligible tenants.  Allowing apartment buildings to be located in commercial zones. Goal 1.1 Provide diversified housing using existing buildings to help meet the needs of current year-round residents, including senior citizens, emergency services volunteers, and other local workers. Objectives: 1) Encourage the development of accessory apartments in existing barns and garages that can be renovated into small apartments for singles or couples or that allow the homeowners (retirees, etc.) to downsize and live in the accessory apartment while renting their house to larger families. The Town’s Community Development Block Grant funding could provide pilot grants. 2) Continue to work with the Family Service League to expand its HomeShare Long Island program, which provides affordable housing for both seniors and non-seniors generally in the form of rooms within existing homes. 3) Establish loans and grants from the Town’s Community Development Block Grant (CDBG) funding to convert larger homes from existing stock into units of affordable rental housing, especially in or near hamlet centers. 4) Encourage the development of diversified housing for artists and crafters in hamlet centers in combination with galleries, etc., drawing on Suffolk County Workforce Housing funding. 5) Consider using buyout funds from inclusionary zoning to partner with Habitat for Humanity and other non-profits to acquire and rebuild substandard housing units. Renovated units could be sold to households on the Housing Registry with covenants and restrictions to ensure perpetual affordability. In addition, consider using buyout funds for purchase of homes that are short-sale and/or foreclosed to households on Housing Registry. 6) Consider using the Town Housing Fund to set up a revolving grant assistance program to enable households on Housing Registry to rehabilitate and/or buy homes on the existing market that would lower the purchase price to stimulate sales. Responsible Parties: Housing Advisory Commission, Southold Senior Services, Building Department, Zoning Board of Appeals, Planning Board, Architectural Review Committee, Community Development Block Grant Possible Partnerships: Suffolk County Economic Development and Workforce Housing, Suffolk County Office for Aging, Family Service League, Walsh Park Benevolent Association, Habitat for Humanity, Community Development Corporation of Long Island, Long Island Housing Partnership Housing Southold Town Comprehensive Plan Update 9 Goal 1.2 Encourage the development of new diversified housing to help meet the needs of current year-round residents, including senior citizens, emergency services volunteers, and other local workers. Objectives: 1) Develop units of moderate-income home ownership through the Town’s inclusionary zoning policies, Suffolk County 72 H transfers (tax default properties), change of zoning to Affordable Housing DistrictAHD, and partnerships with non-profit housing developers utilizing New York State HOME funding. This could include consideration of changing code to allow smaller size homes than had been previously envisioned (less than 850 square feet.) 2) Develop partnerships with non-profit housing developers to build age-restricted apartments using HUD’s Section 202 funding. 3) Develop moderate-income home-ownership units with age restrictions through inclusionary zoning policies, change of zoning to Affordable Housing DistrictAHD, and partnerships with housing providers. 4) Approach appropriate individuals within fFederal, sState and cCounty governments to help the North Fork Housing Alliance increase its inventory of subsidized rental apartments and address the growing needs of lower-income residents. 5) Investigate the provision of tax incentives to prospective homeowners to mitigate the sanitary impact of new construction. 6) Explore the feasibility of identifying potential locations that would be appropriate for higher -density affordable housing that would be readily available to potential sponsors for development. Identification would be part of the process of public meetings with the Town Board, Planning Board, and Housing Advisory Commission. Responsible Parties: Housing Advisory Commission, Town Board, Planning Board, Zoning Board of Appeals Possible Partnerships: Suffolk County Economic Development and Workforce Housing, Community Development Corporation of Long Island, Long Island Housing Partnership, Housing Urban Development, New York State Homes and Community Renewal, Walsh Park Benevolent Association, Private Developers 2. Promote Awareness About Housing Issues Many residents are unaware of existing resources that might help them obtain funding to buy a home, fend off foreclosure, or maintain their home. Affordable housing (also known as “workforce housing”) is often plagued by misconceptions and myths. Goal 2.1: Develop a series of educational forums to inform the public about housing services, programs and resources Objectives: Housing Southold Town Comprehensive Plan Update 10 1) Teach skills to promote successful home ownership and landlord/tenant relations. 2) Working with banks and non-profit providers to, inform homeowners about resources to abate mortgage foreclosures. 3) Highlight resources and programs that promote energy efficiency and weatherization. 4) Deepen public understanding of who needs affordable housing and why. 5) To promote conversion to affordable accessory apartments, create a one-page flyer that simply explains how to create accessory apartments with information about additional tax assessments, maximum rental charges, selection of tenants, etc. This could include a checklist of what is needed along with offering the services of the building department to visit prospective sites to offer suggestions whether the concept is feasible. In addition, Town could host information and discussion sessions with the public. 6) Strictly enforce fair housing laws so that every person has equal access to housing without regard to race, color, religion, gender, sexual orientation, family or marital status, disability, or national origin. Responsible Parties: Housing Advisory Commission, Renewable Alternative Energy Committee Possible Partnerships: Community Development Corporation of Long Island, Long Island Housing Partnership, North Fork Housing Alliance, Regional Banks Goal 2.2: Produce printed materials and Internet resources to complement educational forums. Objectives: 1) Create fliers and brochures and make them available at Town Clerk’s office and other municipal offices. 2) Use the Town’s Website to post PDFs with information about housing resources. Responsible Parties: Housing Advisory Commission, Department of Information and Technology Possible Partnerships: Community Development Corporation of Long Island, Long Island Housing Partnership, North Fork Housing Alliance, Long Island Power Authority 3. Retain Residents in Existing Housing Southold’s population has a large high percentage of senior citizens. The ACS estimates that over 37% percent of the year-round population is 60 years or older. This sizable segment of the population will require special forms of housing and assistance to make it possible for them to age in place and continue living in the Town. Goal 3: Provide resources to help residents stay in their homes. Housing Southold Town Comprehensive Plan Update 11 Objectives: 1) To maintain seniors in their homes, look into establishing naturally occurring retirement communities (NORCs) through grant funding for the Town’s Senior Services. A NORC is a neighborhood or locality where a great many elderly live; it becomes eligible for various social services that make it easier for the elderly to remain in their homes. 2) Promote universal design elements in the building code to accommodate seniors ageing in place as well as persons with physical disabilities. Such elements promote safety features and remove physical barriers that older people or the disabled can’t handle. 3) Provide education about services and resources that help with weatherization, energy efficiency, and home repair for households that qualify under income limits. 4) Mandate that all participants in the Town’s affordable housing programs participate in homebuyer education classes from regional housing providers such as the Long Island Housing PartnershipLIHP and the Community Development Corporation of Long IslandCDCLI Responsible Parties: Housing Advisory Commission Possible Partnerships: Rebuild Together Long Island, Community Development Corporation of Long Island, Long Island Housing Partnership, North Fork Housing Alliance, Southold Town Human Services 4. Quality of Life Protect quality of life for neighbors of neglected homes and blighted properties, and protect the safety of tenants in rentals. Goal 4.1: Address the problems that result from blighted properties. Objectives: 1) Strengthen the staffing of code enforcement to deal with blighted housing. 2) Develop pilot program to rehabilitate units of blighted housing with loans and grants through the Town’s CDBG funding. Goal 4.2: Address the problems that result from tenant overcrowding (fire safety, parking, garbage, and noise) in unpermitted and/or unsafe structures. Objectives: 1) Create an outreach program to inform property owners of code as well as ways to address violations of properties to bring them up to code. 2) Create a rental permit system to help ensure the safety of tenants. 3) Strengthen staffing of code enforcement to address overcrowded housing. Housing Southold Town Comprehensive Plan Update 12 Responsible Parties: Town Board, Building Department and Code Enforcement Office, Community Development Block Grant Reviewing Committee Possible Partnerships: Suffolk County Economic Development and Workforce Housing’s Office of Community Development 5. Develop Best Practices in Housing For the Town to meet the housing needs of its residents, it must stay abreast of national legislation, policies, and programs throughout the nation that could provide fresh solutions for creating housing. Goal 5.1: Continue to review and research policies and best practices elsewhere to find solutions to meet housing needs of the Town’s residents. Objectives: 1) Explore policy and legislative changes that could provide a greater inventory of affordable housing. 2) Seek grant funding for a pilot program to explore infrastructure improvements that would allow for the opportunity to develop very limited increased density such as apartments over storefronts in hamlet centers. The infrastructure to be explored would include the newest technology in small package sewage treatment plants, which are much more compact, efficient and limited in size and scope than traditional sewer systems. 3) Promote the integration of Leadership in Energy and Environmental Design (LEED) (or similar certification that is not as costly) and Energy Star building standards in affordable housing construction to promote occupant sustainability. 4) Examine the merits of creating a housing authority. 5) Encourage the creation of a community land trust; a non-profit group that lowers the cost of housing by selling houses without the land. They typically buy the land, develop homes on the land and sell those homes while retaining ownership of the land and assuming the associated costs of the land, thereby lowering the cost of the house. Responsible Parties: Housing Advisory Commission, Town Board, Town Attorney, Planning Board Possible Partnerships: Suffolk County (SC) Legislature, Suffolk County Health Department, Suffolk County Planning Department and Planning Commission, Community Development Corporation of Long Island, Long Island Housing Partnership.