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HomeMy WebLinkAboutLL 2004 #12 SOUTHOLD TOWN BOARD PUBLIC HEARING May 18, 2004 8:00 P.M. HEARING ON "A LOCAL LAW IN RELATION TO TIlE TOWN OF SOUTHOLD }lOUSING Present: Supervisor Joshua Y. Horton Justice Louisa P. Evans Councilman John M. Romanelli Councilman Thomas H. Wickham Councilman Daniel C. Ross Councilman William P. Edwards Town Clerk Elizabeth A. Neville Town Attorney Patricia A. Finnegan COUNCILMAN WICKHAM: NOTICE IS HEREBY GIVEN that there was presented to the Town Board of the Town of Southold~ Suffolk Countv~ New Yorlq on the 20th daf of April~ 2004 a Local Law entitled "A Local Law in Relation to the Town of Southold Workforce Housing Fund" and NOICE IS HEREBY FURTHER GIVEN that the Town Board of the Town of Sonthold will hold a public hearing on the aforesaid Local Law on May 18 at 8:05 PM, at which time all interested persons will be given an opportunity to be heard. The proposed Local Law entitled "A Local Law in Relation to the Town of Southold Workforce Housing Fund" reads as follows: LOCAL LAW NO. of 2004 A Local Law in Relation to the Town of Southold Workforce Housing Fund: Section [- Town Code Amended The Town Code of the Town of Southold is hereby amended by adding a new Chapter 98 to read as follows: Chapter 98. Town of Southold Workforce Housing Fund. §98-1. Purpose. The Town of Southold Workforce Housing Fund will provide the Town with a mechanism to obtain funding and create programs that will increase housing opportunities for families and individuals who are residents of the Town of Southold and/or employed in the Town of Southold who cannot procure affordable housing within the Town. §98-2. Findings. The lack of affordable housing creates many adverse effects for the town. Regional employers grapple with the task of hiring and retaining employees due to the limited availability of affordable housing. Recruiting and retaining essential personnel (police officers, firefighters, teachers, nurses. May 18~ 2004 Public Hearing - Housing Fund 2 etc.) has become increasingly a challenge due to the lack of affordable housing. Volunteer emergency services are also impacted by the lack of affordable housing, prompting the possible necessity of replacing volunteer services with paid employees. While the Town has benefited from increased tourism and second homeownership, it must also sustain a population who can afford to live and work in Town. To address this housing shortage, the Town of Southold must create a myriad of housing initiatives that reinvest in the lives of residents who live and/or work in the Town. The talented and vibrant energy that was and is invested in community land preservation must be replicated to create affordable housing for a sizable number of residents who lack the financial means to rent and/or purchase housing within the Town. The priority population for community housing will be as follows: · Income eligible individuals/families who live and work in the Town of Southold who provide volunteer emergency/life saving services for residents of the Town · Income eligible individuals/families who live and work in the Town of Southold · Income eligible individuals/families who live in the Town of Southold · Income eligible individuals/families who ~vork in the Town of Southold · Income eligible individuals/families who previously lived in the Town and wish to return Efforts in the past to create affordable housing have failed in their ability to keep the housing stock affordable upon resale. Therefore, to promote perpetual affordability within the Town, all recipients of said housing will be legally bound to sell their properties to the Town's Workforce Housing Fund. Resale price formulas for homes purchased from the Fund will be as follows: · No individual/family who purchases a home from the Fund may sell their home for a profit within the first five years of ownership. · Homes sold after five years of ownership will realize profits that are the equivalent percentage of the Consumer Price Index (CPI) as compiled by the United States Department of Labor. The percentage will be calculated from the date of sale from the Fund to the date of resale to the Fund. In addition, the Fund will compensate the seller for major capital improvements that are improved in advance by the Workforee Housing Advisory Commission. Depreciation may be applied to capital improvements. §98-3. Definitions. As used in this section, the following words and terms shall have the following meanings: FUND -- the Town of Southold Workforce Housing Fund authorized pursuant to this local law. INCOME ELIGIBLE INDIVIDUALS/FAMILIES--- those individuals/families whose incomes are below the designated percentage of the HUD median income for the County of Suffolk. In addition, individuals/families seeking grant assistance and loans from other public funding sources may be limited to household incomes less than the HUD median income for the County of Suffolk. TOWN --the Town of Southold. WORKFORCE HOUSING -- is defined as housing for households whose incomes are not sufficient, pursuant to banking industry standards, to induce private lenders to finance the costs of acquisition of a home with a value at or less than median value as determined by the Town's assessment rolls, without benefit of subsidies or special financing programs from the Town in the case of owner-occupied housing, or in the case of rental housing, as housing for households whose income is insufficient to pay the monthly costs for such housing and maintain such costs within the required percentages of the household's income based upon banking industry standards. §98-4. Fund Established. May l 8, 2004 Public Hearing - Housing Fund 3 A. The Town Board hereby establishes a Workforee Housing Fund. Deposits into the fund may include revenues of the Town from whatever source, including but not limited to: (1) all revenues from a bond approved pursuant to the local finance law for the purpose increasing affordable community housing oppommities; (2) general fund balances, or surpluses, in accordance with the Town's surplus policy; (3) any proceeds received by the local government from the sale or rental of community housing produced from revenues of the fund; (4) the repayment of any loans issued from proceeds of the fund; (5) any gifts of interests in land or funds; (6) any county, state or federal grants received by the town for providing community housing; (7) any future applicable transfer tax which may be enacted subsequent to the enactment of this legislation; (8) recaptured funds from previous town housing initiatives. B. Interest accrued by monies deposited into the fund shall be credited to the fund. In no event shall monies deposited into the fund be transferred to any other account. C. Nothing contained in this section shall be construed to prevent the financing in whole or in part, pursuant to the local finance law, of any project or purpose authorized pursuant to this chapter. Monies from the fund may be utilized to repay indebtedness or obligations incurred pursuant to the local finance law consistent with effectuating the purposes of this chapter. D. No interest or right in real property shall be acquired pursuant to this chapter until a public hearing has been held before the Town Board, and a resolution has been passed approving the acquisition. However, nothing shall prevent the Town Board from entering into a conditional purchase agreement before a public hearing is held. E. No expenditure shall be made pursuant to this chapter until a public hearing has been held before the Town Board, and a resolution has been passed approving the expenditure. F. Any acquisition or expenditure made pursuant to this chapter shall include a finding that it is being authorized in furtherance of the goals set forth in this chapter. §98-5. Purposes of the Fund. A. The proceeds of the fund established pursuant to §98-4 shall be utilized in accordance with law for the following purposes: (1) the provision of no-interest or low-interest loans to income eligible residents who work and/or live in the Town for the purchase of a first home; (2) the actual production of community housing for sale and resale to income eligible residents who work and/or live the Town; (3) the actual production of community housing for sale to income eligible residents who work and/or live in the Town in conjunction with other public/private partnerships such as the North Fork Housing Alliance and the Community Land Trust of Southold who agree with the stated priority population and income eligibility guidelines; (4) the actual production and maintenance of rental housing for rent to income eligible residents who work and or live in the Town or in conjunction with public/private partnerships who agree with the stated profit guidelines; May 18, 2004 Public Hearing - Housing Fund 4 (5) the rehabilitation of existing buildings and structures in the Town for the purpose of conversion to community housing for sale or rental to income eligible residents who work and/or live in the Town; (6) the provision of housing counseling services by not-for-profit corporations that are authorized by the U. S. Department of Housing and Urban Development to provide said services; (7) the fund will ensure the perpetual affordability of housing through determining resale prices of any home purchased through the fund. This will be accomplished through the following: the Town of Southold reserves the right to require that all housing units purchased through the fund remain affordable in perpetuity. All properties purchased through the fund must be sold back to the fund for resale to income eligible individuals/families who meet the qualifications of defined priority populations. No profit may be realized during the first five years after purchase, the resale price must equal the original price. After five years of ownership, homes may be resold to the fund to potentially realize a profit. Sale prices will be calculated at the original purchase price (base price) and shall be adjusted by a percentage which is the same as the percentage by which the Consumer Price Index (CPI) increased between the date that the buyer took title to the property and the date that a letter of intent is submitted to the fund to resell the property. Costs for capital improvements approved by the fund's regulations may also be compensated. Capital improvements are additions that provide value to the property above and beyond repairs to maintain the property in good condition. The Workforce Housing Advisory Commission must approve in advance all capital improvements. The Commission must be given information regarding the scope of work and estimate of capital costs. If capital improvements are approved, the Commission will determine if the capital improvement may be recouped in the event of resale. (8) The Workforce Housing Fund xvill strive to build housing and sell housing that reflects the diverse needs of those seeking affordable housing that includes household income, bedroom size, etc. B. For the purposes of this Chapter, eligible expenses relating to the production of community housing and the rehabilitation of existing housing stock and structures under the fund shall include but not be limited to land acquisition, planning, engineering, construction costs and other hard and soft costs associated with construction, rehabilitation, purchase or rental of housing pursuant to this section provided that these costs do not exceed 15% of the projected project costs. Litigation expenses may not be covered by this fund. All revenues received by the town from the sale or rental of community homes or the repayment of loans shall be deposited in this fund. §98-6 Workforce Housing Advisory Commission Established. A. The Town Board hereby formally establishes a Workforce Housing Advisory Commission to review and make recommendations regarding the Town of Southold Workforce Housing Fund. This Commission would supplant the efforts of the former "Affordable Housing Committee" that no longer meets as a working group. This Board will consist often (10) residents of the Town who shall serve without compensation. No member of the Town Board shall serve on the Commission. The Commission shall reflect a diverse membership with individuals from various May 18, 2004 Public Hearing - Housing Fund 5 geographic locations. In addition, membership will include a broad representation from the community such as landowners, persons with skill and knowledge about the environment, real estate, banking, building and farming. The Commission may also seek members who were/are recipients of housing assistance. B. The Special Projects Coordinator for affordable housing will assist the Commission with administrative tasks such as scheduling meetings, transcribing minutes, etc. The Commission should meet at a minimum of once a month. The primary function of the Commission is to: (1) Ensure that an efficient, cost effective and expedient production of affordable housing is created and maintained. (2) Serve as a liaison for community members within their respective hamlets/villages regarding affordable housing (3) Identify appropriate sites for the development of affordable housing xvithin respective hamlets/villages (4) Approve capital improvement requests from residents living in workforce housing units (5) Make recommendations to the Town Board relating to affordable relating to workforce housing C. The Workforee Housing Advisory Commission shall assist the Town Board in the development of a "Workforce Housing Implementation Plan". The Workforce Housing Implementation Plan. (1) Public Investment. To account for and minimize social, economic, cultural and environmental costs of new development, including infrastructure costs and loss of open space and agricultural land. (2) Development. To encourage development in areas where infrastructure exists (i.e. parking, public water, etc.), primarily within defined hamlet and halo zones. (3) Conservation. To protect, preserve and enhance the Town's natural resources including farmland, forests, surface water, groundwater, recreation and open space. (4) Coordination. To promote coordination of state and local governments to facilitate cooperative agreements amongst adjacent communities in the interest of ensuring compatibility of community development. (5) Community design. To strengthen communities through the utilization of all income and age groups, mixed land use, compact development, open space districts, planned unit development, and diverse and community housing in close proximity to places of employment, transportation, recreation and commercial development. (6) Consistency. To insure predictability in building and land use codes. (7) Community collaboration. To encourage a collaborative community-based effort for implementation of community housing that includes long term land use. D. Such plan may include the creation of maps that define the Workforce Housing Implementation Plan's recommendations proposed by the Town. E. The plan will not be adopted until after the Town Board has held a public heating. The plan shall be updated at least every five years. The plan shall be adopted before monies may be expended from the fund. F. The Workforee Housing Implementation Plan shall also assist with guidance in establishing income and other eligibility requirements for community housing, including any eligibility preference that may be given based upon residency or other criteria (e.g. those persons who provide volunteer emergency/life saving services for residents of the Town). The sale and resale May 18, 2004 6 Public Heating - Housing Fund of community housing to the general public for other than income eligible priority populations is prohibited. Section II. - Severability. If any clause, sentence, paragraph, section or part of this article shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof but shall be confined in its operation to the clause, sentence, paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. Section III - Effective Date: This article shall take effect immediately upon filing with the Secretary of State as provided by law. That is essentially all. If them are questions later on, I can, we can deal with some of the specifics that might come up during the heating. I have notices that it has appeared on the Town Clerk's bulletin board in its entirety on the back, it has also appeared as a legal in the local newspaper. I have a communication from our Planning Board, this is dated May 17th from the Chair of our Planning Board. "The Planning Board has reviewed the draft legislation to create a workforce housing fund. It supports the concept ora housing fund and an advisory commission to assist the special projects coordinator for wurkfome housing." I have a communication here from Ann Wyn, excuse me- from Deborah Gordon Brown, "For the record, I firmly believe that the housing fund must be established and that if our rexes can be used for such a purpose, it is only fair. The prices have gone beyond the affordable and we need the contributions people willing to stay in the area can make; even if they are not in the economic brackets that are more readily serviced." I have a letter from the Suffolk County Department of Planning, "Pursuant to the Section A 14-14 to 23 of the Suffolk County Administrative Code, the above referenced application is not within the jurisdiction of the Suffolk County Planning Commission." And Mr. Supervisor, that is all the communications that we have. SUPERVISOR HORTON: Thank you, Councilman Wickham. We will open the floor to public comment on this public hearing, the creation of a Workforce Housing Fund. Would anybody care to address the Board? Mr. Samuels. TOM SAMUELS: Tom Samuels from Cutchogue. The obvious recognition of the reality that this legislation embodies is very encouraging. I believe the momentum has finally started to move after at least 20 years of discussions of Town Boards and the leadership of the Town. The situation is more critical than it was and it will be more critical next year and the Town's efforts will certainly make a dent in the situation and I encourage the Town Board to support it 100 percent. This is just the first step, there will be other issues coming up. I would like to stress that workplace housing belongs in every part of the Town. It doesn't belong just in Greenport or Mattituck or Cutchogue. But every hamlet should have its share. Any and all of these projects can be architecturally beautiful. They are not going to be ugly buildings. The argument that has been made, it was made on the McDonalds if you remember that it was going to be an eyesore and it turns out that it hasn't and it has been an asset to Mattituck. But in order to make it equitable to the Town, it must be balanced, it must be spread around. In addition to workplace housing, we desperately need workplace garden apartments, which can also be tastefully done. And they will not become ghettos. I support this as I have for a long, long time and it is encouraging to see my perceived courage of this Town Board to finally address what is a long overdue issue. Thank you. May 18, 2004 7 Public Hearing - Housing Fund SUPERVISOR HORTON: Thank you, sir. Would anyone else care to address the Board? Yes, Ms. Palmore. TANYA PALMORE: Good evening, my name is Tanya Palmore from Greenport. I am the Executive Director of the North Fork Housing Alliance. I am here tonight for one to commend the Board for addressing the workforce housing committee commission. I think it is excellent because as the Director of the North Fork Housing Alliance, we see very low income level clients right up to moderate level clients and I think the fact in here you are talking about addressing homeownership as well as rentals, I think as great, you need a combined effort because we have tenants that are renters and they are not ready for home ownership but if they can have an affordable rental now as a stepping stone until they can get to home ownership, I think that is excellent. By having a Commission composed of ten members that is not on the Board, it is good because it is based on the community and having the Board to review the Commission every five years is good because as we all know, the need changes. And to have the Board to have that input to consult with the Board, I think that is excellent. And as the Director of the North Fork Housing Alliance, we offer our support in any way that we can and we just think that it is an excellent effort and thank you for giving me the opportunity to speak tonight. SUPERVISOR HORTON: Thank you, Ms. Palmore. Would anyone else care to address the Town Board? GAIL HORTON: Hi, my name is Gall Horton and I am from Greenport and I want to say that I am in support of this law. Every home that you sell for affordability for workforce housing frees up a rental somewhere within the Town, so you get a double whammy with it. And I think that it is great that it will be town-wide because then we can choose, people can choose were they want to live, what community they would like to live in. You know, it is great that people have choice and 1 think that is very important and the last thing is, [ wanted to reinforce Mr. Samuels, I believe it is, spoke on garden apartments, I don't knoxv whether you know, but I work in Nassau and Suffolk county. Day in and day out I am plying all the streets all over Nassau and Suffolk county and I go into many apartments and they are wonderful. I see parents out there with little children waiting for the bus and kids playing in the yards and things like that and people with safe homes and as we all know, it is not the apartments and even the people that live there who do something wrong, it is the management. So, management is an important but I commend you and keep working on this. Thanks. SUPERVISOR HORTON: Thank you, Mrs. Horton. I will get to you in a second, Mrs. Egan. Mr. Cooper and then Mrs. Ball. DOUG COOPER: Doug Cooper, Mattituck. I strongly support this move, the speakers that spoke before me have said everything that I wished to say and have said it much better. I think it is a wise move for the Town and it is one of the tools that will help the Town for the future growth. Thank you. SUPERVISOR HORTON: Thank you, Mr. Cooper. Mrs. Ball. SALLY BALL: Hello. My name is Sally Ball, I am a retired real estate broker. Retired for one reason only, because prices just went right off the ceiling. There are no homes for young people, young working families. My daughter grew up in Greenport, graduated to Greenport High~ went off to May 18, 2004 8 Public Hearing - Housing Fund college; is a great journalist, has a child and a family. They were up February to see if they could purchase, she wants to come home. She can't. She wants to raise her family here, she can't. He makes $60,000; he is a journalist. At $60,000 no one, the Traveler-Watchman is not going to give him a job, he is a journalist. The Suffolk Times isn't going to pay him $60,000. Even at $60,000, I cannot find him a house and I am a real estate broker still. I can't find--through Fannie Mae, HUD, the VA, Farmers Home, they don't give you enough money to buy a house in the Town of Southold. Not even Riverhead now. Riverbead has gone off the wall. So we need this. I urge you to pass this law tonight so that our young families can come back. I would love to watch my grandson grow up, not live in Arkansas. And I really urge you, there are a lot of, all her friends, they would like to come back home, they can't. There is no way they can afford anything in Southold or Greenport or in the Town of Southold. Please, please, for the sake of all the young families that are out there that, want to return home to their families and how they grew up. It is a captive workforce here, it is not just a workforce. The employers know that everyone wants to live here and work, there is not way that they are going to be able to make enough money to buy the housing that is out there now. As I said, I wish that you put captive on the workforce housing because they can't make enough money to buy the housing that is here now. And I would like to make another suggestion, I was reading this and I see that there is a home in East Marion, I would like to see if you can make a deal with the County, when there is houses and property in that, that it goes to the Fund. So that it will be able to spread out for homeownership. SUPERVISOR HORTON: I am glad that you pointed that out because yesterday our Community Development Office brought that to my office. MS. BALL: A lot of Town's do that. SUPERVISOR HORTON: And generally with vacant parcels, the county notifies the Town first so that we can acquire them through 72H proceedings and we have asked the County to make an exception on that specific parcel, even though it is improved and that falls outside the county policy, we have asked them because of the situation that we are in... MS. BALL: If we had the Fund, they would transfer it through the Fund. SUPERVISOR HORTON: That is a very good point. A very good point. Thank you. MS. BALL: Exactly. Thank you. I hope you enact it tonight. SUPERVISOR HORTON: And Mrs. Egan. JOAN EGAN: Yes, good evening again, people up there and you all here. I have said many times I am for the affordable housing but I think we have to realize that they will probably be pre-fabs which will mean our local people, our plumbers; our electricians; carpenters; won't benefit from it. I also feel that there was a certain amount of collusion between you, Mr. Horton and Mr. Kapell. When I am speaking, this is important... SUPERVISOR HORTON: Mrs. Egan, no, Mrs. Egan. Mrs. Egan, you will address the specific public hearing. May 18, 2004 9 Public Heating - Housing Fund MS. EGAN: Okay, this is in relationship. What does this do in regard to the moratorium on buildings.'? Does that get negated? Would the moratorium for new housing just thrown away? SUPERVISOR HORTON: Mrs. Egan, you are too .... MS. EGAN: No, this is important. You must consider these things before you vote on them. Now, where would the money come from to put these pre-labs up? SUPERVISOR HORTON: Well, I reject your notion ofpre-fabs. MS. EGAN: I don't. SUPERVISOR HORTON: Okay. COUNCILMAN WICKHAM: Would you like me to summarize? SUPERVISOR HORTON: Yes, certainly, Tom. You have got it fight there in front of you. COUNCILMAN WICKHAM: This is the verbatim, from the law. The Town Board hereby establishes a Workforce Housing Fund. Deposits into the fund may include revenues from the Town from whatever source, including but not limited to 1. All revenues from a bond approved pursuant to the local finance law. 2. General Fund balances or surpluses. 3. Any proceeds received by local government from the sale or rental of community housing. 4. The repayment of any loans issued from proceeds of the Fund. 5. Any gifts of interest in land or funds. 6. Any County, State, or Federal grants received by the Town. 7. Any future applicable transfer tax, which may be enacted subsequent to the enactment of this legislation. 8. Recaptured funds fi.om previous Town initiatives. MS. EGAN: Yeah. Well, as I said, I am for public housing and affordable housing but according to the figures that I got, you have to have an income of close to $100,000 to afford one of these affordable housing. Oh, yes, yes, yes. That is the way it will come down and of course it will effect our schools, our fire departments, our doctors, everything. And I think you are getting into something that you don't know what you are doing, you haven't taken care of the business at hand and now you are going from the frying pan into the fire. You have done a lousy job with everything else, what makes us think that with our tax money, you will do something decent? I doubt it very, very much, Mr. Horton. But we will be watching you extremely careful. Too bad about you if you don't like what I say. SUPERVISOR HORTON: Thank you. It is not that I don't like what you have to say, it is that I get to hear it at 6:00 in the morning and 11:00 at night. Okay? Mrs. Norden. MELANIE NORDEN: I would like to know some of the specifics of the revenue issue, since we are really talking now about the Fund establishment and really not discussing the pros and cons per se of affordable housing. Let me ask, does this Fund have any kinds of time constraints or if it is going to be established now or in the near future will it be established in perpetuity? Or is it a fund that is going to be .... May l 8, 2004 10 Public Heating - Housing Fund SUPERVISOR HORTON: It being established by local law would mean it is in effect until which time this legislative body or future legislative body repeal it. MS. NORDEN: Okay. With respect to sources of revenue, first of all does the Fund have an overall goal or a bottom line goal before you start building and/or construction? I mean, does it, do you hope to raise an initial goal of say $2,000,000; $10,000,000; $15,000,000; $20,000,000? SUPERVISOR HORTON: Please go ahead. COUNCILMAN WICKHAM: May I refer to the text where it refers to a workforce housing advisory commission. They will assist the Town Board in development ofa workforce-housing plan and it goes into a long description about what this plan will comprise. Such plan may include the creation of maps that the define the planned recommendation proposed by the Town, the plan will not be adopted until the Town Board has held a public hearing, the plan shall be updated at least every five years. The plan shall be adopted before monies may be expended from the fund. The plan, this is the workforce housing implementation... MS. NORDEN: I understand that but I am actually really actually asking questions about the fund, not about the plan. I understand that the plan is something that needs to be devised going forward .... COUNCILMAN WICKHAM: But the dollars and the money will be in conformance with the plan. MS. NORDEN: Okay but can you give me a sort of bottom line notion? You are obviously going to be going out after, we presume, some federal and state monies... SUPERVISOR HORTON: Those are possibilities. MS. NORDEN: Okay. What are we talking about in terms of dollars? SUPERVISOR HORTON: I don't think you can put a dollar figure on it because I think the options could either be extremely limited or very unlimited. MS. NORDEN: I know. Except that I think that when we are talking about defraying certain kinds of actual town revenues and or surpluses and taking monies like that and putting them in this fund, monies that might have gone someplace else in other years, as we were just discussing. Then I think these issues are germane, because if we are really talking about the fact that we will or will not be successful in the establishment of an ongoing amount of funding for this project, then we are going to be on the long side or the short side with respect to town surplus and how that is going to be invested. So I really think the question is germane. Now, if we, do we think that, for example, federal, county and state monies will comprise 50 percent, 75 percent, 80 percent, 20 percent, of this kind of funding? SUPERVISOR HORTON: I don't ... MS. NORDEN: Any idea though? I mean, I am not going to hold you to it, but any idea? SUPERVISOR HORTON: Excuse me ..... May 18, 2004 11 Public Hearing - Housing Fund MS. NORDEN: Any idea of the capacity to raise money and revenue to put into this fund? Any concept at all? I mean dollar amount? SUPERVISOR HORTON: I have tried four times to answer you. MS. NORDEN: Okay. Let me hear it. SUPERVISOR HORTON: I think that the possibilities for revenues coming into this fund are vast. They could be from federal and state agencies, they could be from donations that people have made queries about, you know, private interests have said that we would like to contribute to affordable housing through the Town, is there a mechanism for us to do that? This establishes that and I think once you have the establishment of the workforce-housing commission; that will be advisory to the Town Board, about how the direction of this fund takes. That commission will provide guidance and also ideas for the development of the fund as it moves into the future. MS. NORDEN: Okay, but [ don't think that gives me any kind of specific handle on a concern that we would have, if in fact, federal, state and county monies for whatever constellation of reasons either because of the way in which the workforce-housing has been established and or its income guidelines or any number of other aspects; might mean that we will end up having to pay more, rather than less of the monies. If we are actually talking about surplus monies in the Town budget and in the General Fund, which has normally gone to other purposes, or had been left in the general fund, which will now be in some ways moved into this fund. If in fact, state, federal, county or other contributions either from private individuals or land contributions are not forthcoming then we are talking about a larger piece of the pie that will essentially have to be funded by Southold taxpayers. That is why I do think it is important that we have some guidelines on what happens, not even so much in terms of what you think you are going to raise but I guess the other question would be, how much of our tax dollars are going to be deferred into the fund? Because Tom has just read, or when this was just announced that extra surplus monies from the General Fund, monies from bonds, monies from all sorts of other sources which would have funded such things as the Highway Department or would have funded .... SUPERVISOR HORTON: You are incorrect in saying that. Okay, you are absolutely incorrect in saying that. MS. NORDEN: Okay, then what would these General Fund monies have been used in the past? They would have been used for what purposes in the past? SUPERVISOR HORTON: In the past, if there has been a General Fund surplus, operative word being surplus, it has remained in an account as surplus. MS. NORDEN: Okay. Right. So in this particular case, if there were surplus they could essentially be apportioned for other purposes, it could be earmarked for this fund and therefore there might be a shortfall in terms of other expenditures that the town might in fact have. SUPERVISOR HORTON'. No, no. Because if there is a surplus, that means that there were no shortfalls. May 18, 2004 12 Public Hearing - Housing Fund MS. NORDEN: So it is a surplus that could, I mean is there any, xvill there be a mechanism in terms of ho~v the surplus will be decided on where it is invested or will it just automatically go, for example .... SUPERVISOR HORTON: No, no, no. It will be, this isn't requiring surplus funding. MS. NORDEN: I understand that, but it could. It provides a mechanism, I am not saying it demands or requires, I am just trying to get a sense of where the fund would be going, what its overall goals are, what sources of funding it would have .... SUPERVISOR HORTON: Well, I think that is embodies in the housing commission .... MS. NORDEN: No, the commission is, but how can you set up a fund without a plan for the fund? SUPERVISOR HORTON: Melanie. MS. NORDEN: I mean, the commission will plan the affordable housing but... SUPERVISOR HORTON: Have you read the legislation? MS. NORDEN: Excuse me? SUPERVISOR HORTON: Have you reviewed the legislation? MS. NORDEN: Yes. But I am actually asking, not about the commission, I am asking about the establishment of the fund and how the fund itself is being structured and how it is going to be invested. I am asking specific fund related questions, not asking questions about the role of the commission. SUPERVISOR HORTON: The role of the commission is legislated in this and the role of the commission is integral to the direction and the future of how monies could be allocated and it is very clearly set out in the legislation how that will take place. MS. NORDEN: Okay. But we have no ballpark figures, we have no idea of how this is going to go down. SUPERVISOR HORTON: We are breaking new ground here, there is not anything of its kind. I think perhaps East Hampton may have something similar but this is the first of its kind. MS. NORDEN: The first of its kind nationwide, are you saying? SUPERVISOR HORTON: To my knowledge, yes. But I could be wrong on that. Certainly on Long Island. COUNCILMAN W1CKHAM: I think we can say that the Town's contribution through taxes will be strictly secondary and furthermore, a lot of it will be a revolving fund, so funds will come in and go out and come in. It won't all have to be replenished every single year. Thirdly, it will depend on the May 18, 2004 13 Public Hearing - Housing Fund housing needs from year to year. It is not something that we can specify fight tonight what exactly what those needs are going to be. Fourthly, if the numbers that we come up with will ultimately come out of a plan that has yet to be developed and fifth, any expenditure of these monies will be subject to a public hearing in this room where the public will have an opportunity to have input. MS. NORDEN: No, I do understand that. I am just concerned that we don't have a sense at all of where we are going with this and not a sense of whether we are even capable of receiving state, county or federal monies. SUPERVISOR HORTON: We are capable. MS. NORDEN: Despite any guidelines that we might impose which are different than the state, county or federal guidelines .... SUPERVISOR HORTON: I know where you are going, Melanie. MS. NORDEN: Right. But I am just asking. SUPERVISOR HORTON: No, I know where you are going with that and the answer is yes. Ifa state guideline is income eligibility and it means 30% of median income .... MS. NORDEN: Right. SUPERVISOR HORTON: Then if we have an initiative that we are, that we apply for that funding on; that would meet that, then we would have to follow those guidelines. The Town has no authority to supersede state or federal guidelines. MS. NORDEN: No, I understand that. But I guess the question is, that if we supersede state, federal or county income guidelines .... SUPERVISOR HORTON: We don't. MS. NORDEN: Well, we may not with rental housing but we might with homeownership. SUPERVISOR HORTON: No. Melanie, you are incorrect. If the state is 80% of median income, the Town cannot receive that funding and say okay, it is a different median income .... MS. NORDEN: No, I understand that. SUPERVISOR HORTON: Well .... MS. NORDEN: But I guess what I am saying is, if with the median incomes that have been thus far suggested, will we still be able, with single family homeownership; to receive state, federal or county monies? May 18, 2004 14 Public Hearing - Housing Fund SUPERVISOR HORTON: Absolutely. And the Town Board, contrary to comments that I have heard you make, the Town Board is committed to ensuring that a broad range of housing opportunities are made available to residents of low and moderate income. That is our effort. We are not, the Town is reviewing of the median income or the income eligibility criteria as it pertains to other town initiatives is not at the exclusion of anybody. It is at the inclusion of more. It is casting a wider net and any Town project, I can assure you, it has been the policy and it will be the policy moving forward; any Town initiative that were to involve a homeownership opportunity, would be income blind. Absolutely 100% income blind, which would mean if you make $36,000 a year or if you make $70,000 a year on a combined income, you would both have a fair shot at any Southold Town housing opportunity and I think that is a very important point to be made. MS. NORDEN: It is an important point, however you have established other criteria that are not income blind i.e. that .... SUPERVISOR HORTON: No, you are wrong about that. That .... MS. NORDEN: But if you say that the number one people that will actually be considered for housing, the priority would be emergency people or people providing life support services; than those people presumably might, may actuaily earn by definitions and standards a good deal more than the average clerk in the average shop in Greenport. SUPERVISOR HORTON: Those are volunteer services. MS. NORDEN: I understand that but, alright, look I just want, I guess I am just trying to establish the fact that, yes, if you do provide and are ultimately able to establish rental housing I can see that there probably would be no problem in meeting federal, county or state regulations. I am simply asking about single-family homeownership, the only project that has thus far been defined in any particular xvay by the Town Board. And the income guidelines that have been put forward from that Board seem to me to be in excess or greater than what would be allowed for federal, state or county monies to be received. So when we are talking about the Route 48 project, right opposite the Shady Lady and we are talking about single-family homes only, four to an acre with rental units, I am not talking about the rental units; I am talking about the single-family homes and the income guideline in the legislation have indicated that they may be beyond the guidelines from the state, the county or the federal government. Is that correct? SUPERVISOR HORTON: That is correct. MS. NORDEN: Okay, so how would that particular project, with a housing fund like this, end up being funded? SUPERVISOR HORTON: The .... MS. NORDEN: If neither state, nor county, or federal would be available for a project like that; then where will that money come from? May 18, 2004 15 Public Hearing - Housing Fund SUPERVISOR HORTON: From the county, from the state, from the federal government. As they have... MS. NORDEN: For the single-family homeowners? SUPERVISOR HORTON: It is quite possible. Absolutely, 100 percent, yes. MS. NORDEN: But I thought we just said that the income guidelines were greater than .... SUPERVISOR HORTON: Melanie .... COUNCILMAN WICKHAM: May I take this? MS. NORDEN: I am just asking the question. SUPERVISOR HORTON: I understand that and they are fine questions, however I don't feel as though you are allowing us to answer them. But what I would like to do is have some other people in the room that haven't had the opportunity to share .... MS. NORDEN: Well, why don't we just hear if Tom could answer my question. And then I could just easily sit down. COUNCILMAN WICKHAM: Okay. I will take it very quickly and answer your question. Suppose the Town's guidelines that we have written into this were 120% of the median. Suppose that the federal, state guidelines go up to only 80%. MS~ NORDEN: Right. COUNCILMAN WICKHAM: What that means is, that we could use those funds only for that portion of the pool of people that fall below that 80% level. MS. NORDEN: I understand that. COUNCILMAN WICKHAM: We could not use it between the 80% and the 120%. MS. NORDEN: Gotcha. COUNCILMAN WICKHAM: But we could still use it. But we only for that lower strata. So, it would work. We could still make use of it and in fact we have crafted this language carefully so that we can access funds from other agencies. MS. NORDEN: Okay. COUNCILMAN WICKHAM: Thank you. SUPERVISOR HORTON: Yes, Mr. Unaldi. May 18, 2004 16 Public Hearing - Housing Fund AYTUG UNALDI: Hi. I am Aytug Unaldi. I would like to contribute with the information of NYSERDA, energy smart communities that I downloaded from internet. It is an option for funding. They are giving grants and monies for energy star buildings. Now, they think that saving energy is a way of decreasing the cost of housing and they support the houses, which consume less and pollute less and save most. This page starts like 'working together can create positive, lasting improvements in our communities and neighborhoods. That's why we are committed to building collaborations to help improve the energy efficiency and vitality of our downtowns and neighborhoods. The energy smart communities.' I have three pages showing which towns, which counties are covered by who. I don't see our county here. I believe it may be a target for you to get some energy funding for such communities because I believe whatever we build now, we have to be sun aware. We have to know where the sun is because it pays 50% of our heating bill in wintertime if we make it correct. There has been tons of researches, loads of documents on solar energy in the United States and it is not being employed, used here, utilized here. I believe it is time to open our eyes, face the sun and bring in some income from the sun. SUPERVISOR HORTON: Are those documents that we can incorporate into the records? MR. UNALDI: Yes, I can give them to you. SUPERVISOR HORTON: Wonderful. Thank you, Mr. Unaldi. I appreciate that. MR. UNALDI: Also for bonds, I think it is a great idea to issue bonds for people who like their children to stay in the neighborhood. They can buy 4% rate of interest of bond, which pays better than a bank but the same cost, if you collect the same cost to the purchaser ora house; 4% is a good interest rate for a buyer. Since the fund will be managed by a small number of people, you won't have high overhead costs like the financial corporations or you won't have profit expectancies like financial corporations, I believe. This is going to be very efficient, I believe. What you can do with bonds is, I believe, a great fund. And people can support their children by buying and making more money than the money they invest in the banks. And thirdly, I would like to quote from Winston Churchill, 'We shape our own dwellings and afterwards, our dwellings shape ourselves' Thus it is very important to shape the dwelling and the community all together. I heard a concern about ghettos; it is possible but if people select each other for communities coming together and helping and sharing, that is not a possibility, I believe. Thank you. SUPERVISOR HORTON: Thank you very much. Mr. Unaldi. You are absolutely right. Would anyone else care to address the Board? Yes, Reverend. REVEREND LINDA CLEMENTS: Linda Clements from Cutchogue. I just want to say that the Community Land Trust of Southold Town is very happy and supportive of this legislation and that we stand ready to work cooperatively and to become another tool in the process of being able to provide affordable housing scattered throughout the Town in ways that will benefit everyone that needs it, in ways that provide quality housing and in ways that are energy efficient and that give another slant to the creativity of ways that Towns can address a need that is a quality of life issue. We support you. SUPERVISOR HORTON: Thank you so much, Reverend. Yes, ma'am. May l 8, 2004 Public Hearing - Housing Fund 17 MARILYN SALERNO: Marilyn Salerno from Southold. I was wondering how the funding that you mentioned would go towards the transfer tax? They would use the transfer tax? I believe you were talking about the real estate transfer tax? SUPERVISOR HORTON: No, there is not a mai estate transfer tax that would go towards this at this point. From what I understand at the state level, something of that nature would have to be legislated by the state, similar to the Peconic Bay transfer tax for preservation. And [ believe a similar tax has been introduced in Albany by Assemblyman Thiele from the Second Legislative District for the Assembly and I do not believe that his legislation has grown legs, so to speak, I don't think his legislation has been received very well in Albany at this point in time. MS. SALERNO: Thank you. SUPERVISOR HORTON: Thank you, ma'am. Yes, sir? WALTER BLUM: Walter Blum from Greenport. My question is regarding larger developments that you had said would have to put affordable housing in or put up money regarding that. Could you explain that a little further? SUPERVISOR HORTON: I am glad that you actually mentioned that because that is another possibility for funding the workforce-housing fund. The Toxvn Board today and please feel free to jump in if you would like to elaborate or explain it better than I may, the Town Board is drafting legislation that would require any subdivision of five or more lots. Any residential subdivision of five or more lots that a percentage of those lots be put out to the market as affordable. Now, if the landowner chooses, the landowner could possibly also have the option of.... MR. BLUM: Land owner or developer? SUPERVISOR HORTON: The landowner, developer. If they, they would be required to provide a certain percentage, let's say 10 percent, and the other 15 percent; 25 percent total affordable and 10 percent mandatory, the remaining 15 percent could be created as affordable or a set amount could be, would be put into the Community Housing Fund in lieu of creating that lot; so the Tovm could work to create that lot somewhere else. MR. BLUM: The amount of money that you are talking about, what is that - equal to what a house would cost? Is that what you are saying? SUPERVISOR HORTON: We would probably tie it to and it would have to be somewhat liquid, you know, based on appraisal but tied to the going rate of a development right. So in today's market, development rights are being purchased from anywhere between $25,000 to $32,000 or $33,000 per development right. So it would probably be tied to that. MR. BLUM: So to a development right, rather than the value of the house? SUPERVISOR HORTON: That has been the discussion, yes. May 18, 2004 Public Hearing - Housing Fund 18 MR. BLUM: That leads me to my other question here, if you have a builder who comes along and builds affordable housing for Southold, say these 16 units that you are talking about at Route 48, does that go into his, so to speak, fund towards affordable housing that if he put another development in somewheres else that he would... SUPERVISOR HORTON: No. MR. BLUM: That would be treated as separate issues? SUPERVISOR HORTON: Yes, absolutely. They would be treated differently. Separately. MR. BLUM: You can work that two ways, that is the only reason I am asking that question, you could work it one way towards you that if you had a developer, it could be a windfall for him to do it and it could be a windfall for the Town if they wanted to do it that way because maybe they could get it done very, very cheap because he is benefiting by saving a lot of dollars, too. SUPERVISOR HORTON: Right. Those are good points to consider. MR. BLUM: That is another way of looking at it, too. SUPERVISOR HORTON: Absolutely. I appreciate you bringing that to our attention. MR. BLUM: Okay. SUPERVISOR HORTON: Would anyone else care to address the Town Board on this public hearing? MELANIE NORDEN: Melanie Norden, Greenport. Just to follow up on that last question. Will there be any advantages for developers who actually do develop affordable housing with respect to other parcels of land they own upon which they will not want to place affordable housing? In other words, are there any special compensations and any other advantages for developers to develop affordable housing? SUPERVISOR HORTON: I am not sure [ understand your question. The... MS. NORDEN: A developer develops an affordable housing project and also happens to be developers of regular major or minor subdivisions, will he accrue any assets or any other advantages that he can trade; having developed this affordable housing for the Town? SUPERVISOR HORTON: No. MS. NORDEN: No transfer of affordable housing rights, no transfer of any other kinds of rights? No diminishment of lot size on another piece of property that he might have? No change in density or anything like that? May 18, 2004 Public Hearing - Housing Fund 19 SUPERVISOR HORTON: No. We have contemplated, we have discussed the possibility of, if the developer of a subdivision was required to meet that 25 percent affordable, okay, that is going to have to be met... MS. NORDEN: Right. SUPERVISOR HORTON: The Town Board is considering understanding that perhaps the landowner or developer may think or put the argument forward, is that going to be a financial burden and where the rest of that subdivision would have to bear the cost of the homes created affordably, the concept is out there and being seriously researched to allow that developer a density increase of some percentage or some amount of lots, however with an offsetting monetary contribution to the CPF in the ..... MS. NORDEN: Okay, well how about the reverse, though, which would be the developer that develops an affordable housing program, for example we can take this Route 48 lot or any other piece of property but he is not only in the exclusive business of developing affordable housing, he is actually a housing developer and owns another piece of property say two miles down the road, will he be able to, will there be any advantages that accrue to him for having developed the affordable housing on that other piece of property that he would like to develop? SUPERVISOR HORTON: No. MS. NORDEN: So this for him will be only the advantage of essentially what the market deal itself will yield, with no other tradeoffs and/or offsets? SUPERVISOR HORTON: That is correct. MS. NORDEN: Okay, thanks. SUPERVISOR HORTON: If I understand you correctly, yes. Are there other comments on this public hearing? Yes, Mr. Geiss. GUNTHER GEISS: Gunther Geiss of Southold. And before I begin, sir, I will fess up, I have not read the assignment but I have an excuse, my dog ate the paper. What I am concerned about is the language in this. Are we talking about homes that are initially affordable or affordable in perpetuity.? SUPERVISOR HORTON: In perpetuity. MR. GEISS: And how do you manage that? SUPERVISOR HORTON: At this point in time, the perpetual affordability is with the, done through covenants and restrictions that would tie that property to I think CPI, Consumer Price Index. MR. GEISS: So in effect, you are saying to the homeowner that if you improve upon this property, you will not recover that improvement, except to the degree that the CPI increases.'? May 18, 2004 20 Public Hearing - Housing Fund SUPERVISOR HORTON: Improvements would have to be, I believe, agreed upon by the Commission and the homeowner and then upon sale a .... COUNCILMAN WICKHAM: May I read the relevance? SUPERVISOR HORTON: Please. COUNCILMAN WICKHAM: "The Fund will ensure the perpetual affordability of housing through determining re-sale prices of any home purchased through the Fund. This will be accomplished through the following: The Town reserves the right to require that all housing units purchased through the Fund remain affordable in perpetuity. All the properties purchased through the Fund must be sold back to the Fund for re-sale for income eligible individuals or families, who meet the qualifications of defined priority populations. No profit may be realized during the first five years after purchase. The re-sale price must equal the original price. After five years of ownership, homes may be re-sold to the Fund to potentially realize a profit. Those sale prices will be calculated at the original purchase price, that is the base price, and shall be adjusted upwards by a percentage which is the same as the percentage by which the CPI increased between the date the buyer took title and the date of the letter of intent to sell. Costs for capital improvements approved by the Funds regulations may also be compensated. Capital improvements, etc., etc." MR. GEISS: Well, my concern is that in restricting what a person can recover fi.om a property, I believe in New York City, they learned a long time ago with rent controls, that landlords, particularly in that case, simply let properties decline and they extract a maximum that they can in rental and then eventually abandon them. There is a problem when you prevent people from gaining from whatever appropriate gains that took place. And I am particularly aware of the High Meadow development which is near where we live and apparently was finished just before we moved here and those homes are clearly now in the $400-$500,000 category and not affordable, in the sense in which you use it. Now, I am concemed that when you restrict what people can do and how they will benefit fi.om that, they are less inclined to maintain and as they fail to maintain, will they still get the market value or the calculated value and who is going to restore that property and the new owner is disinclined to restore the property given that he knows for five years that he can't recover the restoration. I am afraid that we are getting into an area that not only works negatively in terms of the maintenance and conditions of the community but that is going to put an enormous administrative burden on someone, whether it be the Town or whether you have a Community Trust or whatever it may be. But there is going to be an issue of some governmental or quasi-governmental agency very much getting into the pockets of individuals and telling them what they can do with their property and I don't think that is constructive. That is my concem. SUPERVISOR HORTON: Thank you, Mr. Geiss. Reverend DeArmitt. COUNCILMAN WICKHAM: Before we do this, I would like to correct a comment that I made. I read from an earlier version of this and that actually, the re-sale of a house~ the value that is legitimate for the re-sale value increases by the CPI, right fi.om year one, there isn't that five year wait period but any re-sale, even during the first five years can be increased by the rate of CPI. SUPERVISOR HORTON: Reverend DeArmitt. May 18, 2004 Public Hearing - Housing Fund 21 LORRAINE DEARMITT: I am Lorraine DeArmitt, I am Pastor of Southold United Methodist, I would like to remind the Town Board that Community Land Trusts have been in existence for at least a decade and have worked out many different ways, depending on the needs of each location to keep housing affordable in perpetuity and to keep those communities, whether it is cluster housing or housing rental units, individual or duplexes scattered around a community; Community Land Trusts have worked out a number of different ways to keep those houses both attractive and kept up and affordable. There are lots of different formulas that are used. People recapture a certain amount of money in their improvements; they understand that they are getting into affordable housing because they need affordable housing, that they are not going to be making the amounts of profits that others might who are on the free market. That there is a lot of wisdom out there, it has been established, it has been used, it is working in a lot of places in the country and certainly they Town would be able to tap into some of that wisdom. Thank you. SUPERVISOR HORTON: Right. Thank you very much, Reverend DeArmitt. Yes, Mrs. Horton. And Reverend DeArmitt, we will draw upon the wisdom of the Community Land Trust board and members for assistance moving forward. And this one certainly supports the Community Land Trust moving ahead. Yes, Mrs. Horton. MRS. HORTON: I just want to speak to restraining the sale price. Affordable housing gives someone a home, I mean they buy a home and they are allowed to build equity in it but having been involved, I think over the years in the creation of 16 affordable houses in the Village of Greenport and we learn by our mistakes. That you can create these houses and then they appreciate so much and they are sold, almost for high-and prices and then they go out of the community and there are no affordable houses left. Life is a trade-off. Life is a negotiation and a person, I think many people in this town who live here or work here would appreciate having a home of their own and accepting the restrictions that go on it and they will still be able to move on if their circumstances change enough where they are. But life is a trade-off, we have to trade-off where the houses are and we have to do that tradeooffor they do not remain affordable and [ can tell you that from the experience of working in that, [ would say with 16 houses at least. Thank you. SUPERVISOR HORTON: Thank you, Trustee Horton. Yes, Ms. Wolf. DOROTHY WOLF: My question is, I support everything that you are doing, I think affordable housing is long, long overdue but I am just wondering what the relationship is, since I attended Wednesday nights meeting, what the relationship is with Greenport? They have got the water, they have got the zoning, they have got a school that could take 600 kids I understand; are we flying alone or is there some relationship that we have, Trustee Horton is here, [ mean, are we in a partnership with them, it seems to me that they are ready to rumble and we are going to have to overcome a great many problems; zoning and water and all the other good stuff. So, would you address that? SUPERVISOR HORTON: I don't know if you are using the term rumble as in ready to go or... MS. WOLF: Yes, ready to rumble, yes, yes. SUPERVISOR HORTON: The Town Board is not ready to rumble and the Town Board will not rumble. May 18, 2004 22 Public Hearing - Housing Fund MS. WOLF: I am what you see. SUPERVISOR HORTON: We actually see real value in working together with the Village of Greenport and that may be in a way that we don't even envision right now but what we as a Board decided today, since last Wednesday's meeting was to appoint and I did appoint Councilman Ross, Councilman Edwards and Councilman Romanelli as a delegation from the Town Board to work in a working group with members of the Village Board and I think that is going to bear fruit, not only in regard to affordable housing but in general on issues that we can work together of mutual interest, where we should be working together. MS. WOLF: Thank you. SUPERVISOR HORTON: Thank you, Mrs. Wolf. Yes, Mr. Blum. And I see you Mr. Petmso, I will get you next. MR. BLUM: My question is regarding Community Land Trust. Community Land Trusts are set up where the land is owned by the Community Land Trust, and the house is owned by the individual. The problem with that all stems that they are really in a quasi-rental state. The person who owns the house because they really only have one place they can sell the house to and that is to the Community Land Trust and if you took, just follow me for a moment more; if you took twin brothers and one bought a house for $250,000-$300,000 and the other one bought affordable housing and 25 years from now, they go to sell their house, the one who owns his house and owns his property is going to have his nest egg which may carry him his retirement years, whereas a pemon who is in affordable housing, if he stays in that; he really hasn't built up much equity at all, if at all. And the problem become one that at that point there, have we done him a service or a disservice? SUPERVISOR HORTON: People make personal choices, sir. MR. BLUM: ! understand what you are saying but at the same time, it is like we are begrudging somebody to let them, their house have a nest egg for them, that they can grow and have something that, you know, works for them in the future. SUPERVISOR HORTON: Well, the Town, and I see your point, and it is an interesting one because we live on an island, there is only so much land to go around and you can't continue to build your way out of your situation and so the Town Board feels very strongly that if we are going to work in a way that yields affordable housing opportunities; that they should be affordable not only for this generation but for the next generation. MR. BLUM: Well, as the other gentleman over here said, the problem is that the people that are buying affordable housing, that they really don't have full ownership to that house and the land, the problem becomes one that they really don't have a vested interest in it. They are going to, it is going to be diminished .... SUPERVISOR HORTON: I think you would be surprised at the character of the people of this community and Louisa Evans has a .... May 18, 2004 23 Public Heating - Housing Fund JUSTICE EVANS: On Fishers Island we have something called Walsh Park... MR. BLUM: Walsh Park, I am familiar with it. JUSTICE EVANS: The people that live there, they are under the same restrictions when they sell them. Their houses are beautiful, they put lots of money in their landscaping, which they will never recoup. They are proud of their houses, they are happy to have a place to live. And the trade-off is they may not get their nest egg when they sell it, they will have to get their nest egg some other place but at least they can stay in their community with a house, which is what they want. MR. BLUM: The only other thing is that you do nm a situation like they did up in Burlington, Vermont where they have also Community Land Trust and 19 of the houses that went into foreclosure, it ended up that the Community Land Trust had to put up over $1.5 million to buy them out; to take care of that situation. There are other situations that you are running into there. COUNCILMAN ROSS: We understand that there is a balance between providing incentive for the participants in the program but not allowing the market to destroy the affordability of it for the next generation and that is a balance that we are not only working with, with this piece of legislation but we are also working with the amendments to the AHD, the heating which is coming up and it is one of the reasons we have asked Mr. Reale to give a look at our legislation and it is a balance, we recognize that and because there is that potentiality, we don't want to walk away from it. We want to deal with it and give the person with the home some incentive but not enough that is going to destroy the affordability for the next person and it is as simple as that. We are trying to put together these formulas as best we Can. COUNCILMAN WICKHAM: I would like to add a comment. We look forward to learning more about Community Land Trusts and I am hopeful that we'll have a discussion about that at a subsequent Town Board meeting but I would like to address your twin brothers scenario, where one is in the affordable stream and one isn't. The question you raised is, isn't the one who wasn't going to be in a better position at retirement because he will have saved up a nest egg? I don't think it is the job of the Town to provide for that nest egg for retirement for our people here. It is our job, as we have tried to craft it, to provide adequate housing for as many people as we possibly can. There are other financial instruments out there that people can use to plan for their future. There are other instruments to plan for retirement. It doesn't have to be only through your house and we would like to keep the housing, at least a good solid section of it, available for seniors as well as ordinary, working people who really can't afford to make that original investment. MR. BLUM: Well, you know, when you talk about affordable housing and you talk about two brothers again, the situation also becomes one that when most people that are in affordable housing, they have, they are trying to save money but they don't have money to save; they are running on a shoestring. What are we doing with them when we go out further and further and further? We have provided them with a house but the problem is that someday down the road, there is going to be a problem and that is what I am trying to come up with, you know, something that makes sense. SUPERVISOR HORTON: You say that someday down the road there is going to be a problem, I really don't see what you mean. May 18, 2004 24 Public Hearing - Housing Fund MR. BLUM: You think that Social Security is going to be held together the way it is, Josh? I don't think so. SUPERVISOR HORTON: That is a discussion for another day. MR. BLUM: But, I am just saying, we don't think that Social Security is going to be another 20, 30 years. You speak to most young people today, they are not looking at Social Security as a solid part of their income for their retirement. SUPERVISOR HORTON: And I also know young people in this community are just looking for a place to live in this town. And we are trying to address that. MR. BLUM: I know, we are trying to deal with the here and the now, I understand that but we are also trying to look at what the future is going to bring. COUNCILMAN WICKHAM: I think our community will benefit from having a wide range, a diversity of people, many of whom are kind of struggling. They are good, solid working people who contribute to the fabric of the Town. MR. BLUM: Tom, I am not saying no to that. I think that is good, I am just saying that, is there something wrong with somebody trying to build some kind of equity... SUPERVISOR HORTON: Absolutely not. MR. BLUM: .... that is what I am saying. The problem is that when you are talking about perpetuity, that you are really talking about limiting what somebody can figure you will have. COUNCILMAN WICKHAM: But those people have the other choices in the free market, if they wish. MR. BLUM: But what choice, the only thing is, if you force them into savings - and that is a forced savings, as far as a house. I mean, when you look around the room, how many people have where they consciously save every week or every month. SUPERVISOR HORTON: I do. MR. BLUM: Most of them don't. You are one of the few. SUPERVISOR HORTON: I save every week. And I am still renting, all right? MR. BLUM: But my point is, that most people look at their house as one of their main assets ..... SUPERVISOR HORTON: You are absolutely right about that. May 18, 2004 Public Hearing - Housing Fund 25 MR. BLUM: The problem is that maybe when you get older and you are 60 or 70 years old and you can't stand the winters up here any more and you want to go down south or someplace else. that you can't afford a house down there because now .... SUPERVISOR HORTON: We are not in the business of providing retirement plans for people. That is just not the job of government. We are trying desperately to provide housing opportunities. MR. BLUM: I understand but you are doing it on the socialized basis, then. SUPERVISOR HORTON: Okay. Mr. DiNizio. JIM DINIZIO: Hi, Jim DiNizio, Greenport. I like the legislation, I do wish that it was less government than more of it, I guess that is the conservative in me. I would like to see in the future legislation, a more definitive restrictions on the house as opposed to just having the Committee decide what these people can do with these houses and what they cannot. And ifI go to the two brothers' and I deal with reality right now, if I have a brother who rents a house at $1,000 for five years and moves away; he gets nothing. If I have a person who buys a house and sells it for the same price after five years, he gets all his rent back. That is quite a benefit the Town is giving. Now the $1,000 is $60,000. Maybe for a person who is making $80,000 they cannot afford a house right now, honestly, a person making $80,000 or two people making $80,000 in today's market cannot afford to buy any house advertised in the Suffolk Times. Any house. This gives them the opportunity to save. But I would like, if I could somehow and if you could somehow, to restrict these houses to the point where they can't do major improvements. They can't take the money that they are saving and make the house better just for them. My preference would be and forgive me, that it be a little bit uncomfortable for them in that house. That they want to move out of that house, so the next schmoe that comes by can purchase it, okay? And he can get the advantages of that saving that rent for five years or however long it takes because that is the way that this program has to work. That they don't stay in there for the rest of their lives because they want to move to Florida when they are 70. They stay in there until they are 30 and they want to have children and then they sell the house and they take the rent that you have given them the opportunity to save and perhaps put it on a better house on the market and I think that is what we should be aiming for. I think that is what this law aims for, with the exception of the fact that your restrictions don't encourage that. And you know, I would like to see you put this stuff in the bulk schedule, you know, they can't have swimming pools, you know, anything that requires a permit, they can't have. SUPERVISOR HORTON: You are talking about the AHD zone, as well. MR. DINIZIO: Right, right. SUPERVISOR HORTON: I got you. It makes sense. MR. D1NIZIO: Because now it is going to be part and parcel of when these people own these houses, they are going to know exactly what they are getting into. And hopefully they are going to plan that five years they are going to be out of there and doing something else. But I do encourage you, I think this is the step in the right direction because out there right now, there is nothing. And I just encourage you to go forward with this. Thank you very much. May 18, 2004 26 Public Hearing - Housing Fund SUPERVISOR HORTON: Thanks. Mr. DiNizio. Mrs. Bishop. And then I will get you, sir. STACY BISHOP: Hi. Stacy Bishop of East End Construction Services. Josh, you remember a couple of years ago I sat down with you and discussed the whole CPI and affordable housing districts idea with you, it is actually modeled and very successfully implemented on the west coast. And the idea that they have on the west coast is for a specific time period and one community, Walnut Grove, I believe it was, they have a time limit of 15 years that the house is tied into the CPI, at which point the homeowner has to sell it back to the municipality, or make other arrangements to stay with them there. And what the benefit is again, is that it keeps the housing costs down. Affordable housing shouldn't be a windfall for the homeowners, it shouldn't be paying $150,000 for a house, with the guy down the street is paying $300,000; yet 10 -15 years down the road they could sell it for the same amount of money. The idea for affordable housing is to give people a leg up to stay in the community. I know a lot of the communities have residential requirements with regards to workers, police officers; highway workers and whatnot and it is just supposed to be a leg up to help, so I think that the idea that you have to tie it into the CPI and to keep the housing down is really a benefit. It works on the west coast and it is very progressive out there, they are changing it along the lines but I think it is a good idea and I think you should continue along those lines. SUPERVISOR HORTON: Thank you, Stacy. Yes, sir? Yes and then you will be next, Andrea and in the back. SANFORD HANAUER: Sanford Hanauer, Mattituck. We all know the American dream is to own a home but when we all started out, we all didn't go into homes immediately and the cost of building homes, the cost of land is escalated unbelievable. So we have to find different ways of accommodating people in multiple dwellings, nicely landscaped as Mr. Samuels said and we can do that very nicely with a lot of green space around it and I think that that would be the answer to giving young people and even elderly people a chance to live in a nice environment and affordable. SUPERVISOR HORTON: Thank you very much, sir. Ms. Rive. ANDREA RIVE: My name is Andrea Rive, I live in New Suffolk. My family has lived there since 1919. I am part of the Community Land Trust. One thing that I am hearing in this room is that some people feel that the crisis is created. You know, that it is not actually real; that it is a manipulation of data. I work in the title industry, 1 have access to amazing data. The National Association of Realtors has advised us that we have a 69.1% housing inflation since 2000. 69.1 pement. 47 pement of the people who live in Nassau or Suffolk could not buy their homes today. How do we get there? It is the concept that the home is an investment so when the market was not performing as some investors felt it should, they put that money into real estate and they got the investment they were looking for. But what happened to our communities? Our kids left because they can't live here. So somewhere we have to decide, is real estate an investment or is the community itself, that nurtures youth and people and workers in industry; should that be a consideration, should that be an investment? The Community Land Trust tries to sever the investment concept from the housing concept. You need housing, you need community. People who can already get into the investment of buying a house and recognizing 100% appreciation or 69.1% appreciation in three years, god bless them. But we still need people here. we still need people working here. That is my point. May 18, 2004 27 Public Hearing - Housing Fund SUPERVISOR HORTON: Thank you very much, Andrea. Mr. Petrucci. JASON PETRUCCI: Good evening, Jason Petrucci, Mattituck. I would like to thank the Town Board for taking up this issue. And I would like to thank the public for the illuminating discussion we have had. I have heard a lot of people in favor, a lot opposed. The issue of affordability as we are facing it now is not really just an issue that we are facing in this town, obviously. It is not just an issue being faced on Long Island, all throughout the northeast and in California, there seems to be an almost nationwide, due to this investment. Sort of an unprecedented type of appreciation of home value, people are investing in homes and real estate now. And it seems as a result of this, there is almost nothing we can do about addressing this approach to land as it has become an investment that we don't just look upon our home as being an aspect of our community but there may be nothing we can do about the high price of homes; nothing we can do to change the culture. So I thank the Town Board for taking this unprecedented approach in terms of creating an affordable housing fund. Now, it has been said that we are kind of groping in the dark here, we don't have any idea how we are supposed to procure funds for this kind of program, we don't know how big the fund is going to be yet, we don't know what kinds of projects we are going to fund with these revenues. Well, that is because we are saying this is unprecedented. Now, I believe you said that the only town that has anything resembling this is East Hampton now? SUPERVISOR HORTON: That is correct, to my knowledge. MR. PETRUCCI: Well, I mean, you know, I don't think you can be expected to answer on perhaps tens of thousands of municipalities nationwide as to whether or not they have something like this, the point is, we are creating something which is probably long overdue on Long Island, I mean, if the only other town that has anything at all like this is East Hampton, I guess we axe kind of groping in the dark. That is because we are taking the lead, right? That is because we are creating something here. Now, I think it is also interesting that one of the previous speakers mentioned Social Security and he mentioned with a lack of confidence of its future solvency, well, the fact is you could see this as being a similar situation because new economic realities create different perceptions of property and of people's entitlements, now housing didn't used to be a problem like this. Now it is. So that means maybe we have to create a new program or a new funding mechanism to ensure affordable housing now. In the late 60's there was already talk about the need to preserve farmland but it was not until 1974 that Suffolk County created the first farmland development rights program for purchasing farmland development rights. That was a new plan, it took a few years to create it, it took a few years to implement it. We are creating something new here and I think that is very good and so I would just like to applaud you for taking that leadership. Now, I think all critical questions are a good thing to get out but you know~ we don't know in terms of how we are going to procure revenue fur this; we don't know where it is going to go. That is because it is new, so I would llke to thank you for taking the leadership and for taking this unprecedented look at this problem. The possibility that people are entitled to a place to live. Thank you. SUPERVISOR HORTON: Tlmnk you, Jason. Mr. Wolf. JESSE WOLF: Jesse Wolf, Southold. I was interested in that gentleman's point of view about multiple housing. It raises another issue and that is the question of crating an autonomous or semi- autonomous housing authority, which builds housing of a multiple nature; runs the houses; it need not May 1 g, 2004 Public Hearing - Housing Fund 28 have the stigma of the 1930's and 40's and 50's of housing projects; it could be very attractive, garden apartment t3q~e dwellings. I recall one from our early years of marriage in Queens called Parkway Village, which was occupied almost entirely by UN personnel at that time. It was quite lovely, it is now turned into condominiums and is doing rather well. I haven't been there in a bunch of years but I bet it is as pretty today as it was 50 years ago. I think it is an alternative to private dwellings, which if I didn't own a house, I wouldn't be living here. Private dwellings are certainly the Cadillac of housing but that is not the only route to go and many communities and I am thinking of the Town of North Hempstead in particular, has run very successful housing projects that are quite comfortable, they eliminate all the problems of perpetuity, of investment ete, etc. People have to maintain a certain level of income or grow out of it, it avoids the kind of mind games that I heard being talked about in terms of the degree in which people improve their property or don't improve their property and it is a hell of a lot simpler to develop than a series of private homes on varying tracts of land. SUPERVISOR HORTON: Thank you very much, Mr, Wolf. Mr. Unaldi. MR. UNALDI: Well, I have a small suggestion on indexing the value of the units. You suggested Consumer Price Index and Consumer Price Index is depending on the consumer products which are being produced. World population has doubled itself in the last 50 years and land is not being produced anymore, so the economic relation between consumer goods and the land won't be direct, I believe. You can employ a Southold land Index, Southold land price index; by square foot, acre or whatever which can relate to the value of the houses that people purchase and maybe protect them in a better way and keep it in a certain level. SUPERVISOR HORTON: Interesting. Thank you very much, Mr. Unaldi. Are there other comments from the floor? Mrs. Egan. I will get you next, Mr. Israel. MS. EGAN: I want to have something clearer. Are you still at this point, isolating yourself to affordable housing on Chapel Lane and on 48 across the street from the Shady Lady? ls that were we are initially going with affordable housing? Is that definitive? SUPERVISOR HORTON: No. No. MS. EGAN: No? When will that be decided on where it is going to go? SUPERVISOR HORTON: Well, the Town Board is adamant about having a town-wide approach to affordable housing, which would mean home ownership and rental as Mr. Wolf pointed out, on a hamlet by hamlet basis. So there is you answer. MS. EGAN: Well, I keep hearing that you are going to do it on Chapel Lane and across from Shady Lady. SUPERVISOR HORTON: The Village made a request to the Town Board to meet about annexing properties in that defined area and I think that is probably where you are getting that .... MS. EGAN: Well, I am getting it from television, you have that show on all the time. May 18, 2004 29 Public Hearing - Housing Fund SUPERVISOR HORTON: Okay. The answer to your question is no. MS. EGAN: No. So you then, to the best of your knowledge which comes to me then, you don't know where you are going to do it? You are just jumping into it. Bigshots. Is that what you are doing, Mr. Horton? SUPERVISOR HORTON: No, Joan. MS. EGAN: Mrs. Egan. SUPERVISOR HORTON: No, Mrs. Egan. Mr. Israel. MS. EGAN: No, I would like to know when you are going to tell us .... SUPERVISOR HORTON: I answered your question, Mrs. Egan. MS. EGAN: When will you know where you are going to do it? Will we have any input as to where you will do it? SUPERVISOR HORTON: Yes, there will be input. MS. EGAN: Them had better be. SUPERVISOR HORTON: Yes. Mr. Israel. RICHARD ISRAEL: Hi, I am Richard Israel, I have been involved with affordable housing in this Town for at least 15 years. I helped draft your original affordable housing code, I have been on a lot of your committees. I first want to say that I think this is a giant step for us. To create this fund, is actually stepping finally out of the box where we will have a mechanism, and that is what this fund is, it is a mechanism upon which a lot of times when we have had ideas on affordable housing, we were never able to implement them because the mechanism never existed to either receive money, put it to certain uses and created to do affordable housing here. I think that we have made, and I won't call it mistakes in the past, but I think what we have done in the past in affordable housing is we have taken all of our efforts and eventually given them to the homeowner who has purchased this house. We have gotten him grants, we have gotten him and I am a developer, I created High Point Meadows; through allowing the development to get higher yields and things like that, even values that I let go, went to these homeowners who are now reaping these benefits. I think we have seen in affordable housing over the years, that the young people of our Town or I will say our local population have taken great pride in having the ability to live here. And I believe that we need to make it so that the housing is affordable forever, I believe in what Jim said is, that it is not meant to be this comfortable place where you have a sxvimming pool in the back and you add on six bedrooms and the like. It is meant to be a stepping stone, just like a person who~ in generations ago came to Brooklyn, rented an apartment; there are some people who left those apartments and moved to Nassau and Suffolk and bought homes and the like. There are other people who have spent their entire lives in those apartments and have had other opportunities to create for their retirement a like and they have paid rent their entire life and have been happy to do that. I think that the important part that we realize within our town is we need to keep May 18, 2004 Public Hearing - Housing Fund 30 a certain social basis here. And by just allowing the market, which has gone out of control hem to where the average person cannot afford a house and there is a lot of discussion off are we trying to do this for people who earn $30,000 or $80,000, whatever, I think it is important and that we are £mally grasping at the issues of how do we keep the people, who keep our communities going, here. Within our community, that they earn their money here, they spend their money here, it doesn't go away. That we don't end up with this train of people who come here, earn their money, go back to some other town, spend their money; if we can keep our economy within our own town circulating, we will definitely have rewards. I believe that if you think about and Jim brought it up also, that really the person who is, if you want to consider that he is renting, that is fine because eventually he is going to give it back but he is going to get all of his money back plus an increase so that at least it will buy the same loaf of bread it did in prior years. So, we have to remember, we are stepping out of the box, we are trying to address an issue that is totally out of control and there isn't a perfect, silver lining solution. Just like we did affordable housing 15 years ago and we now question what we did, we never dreamt that a house that we were able to put kids in back then for $80,000 to $125,000 would be worth $400,000 today. Did we ever dream of that possibility? The answer is no. But we really have to address the issue and I think you guys are taking some good, bold moves that are long overdue to begin to make it happen. Do we know where we are going? The answer may be no but I think that with the Board and everybody within their controls, we're actually doing positive steps and that is the positive thing and that is what we have to do and I applaud you. SUPERVISOR HORTON: Thank you, Mr. Israel. Yes, ma'am? JOYCE BECKENSTEIN: My name is Joyce Beckenstein and I have never been to a Town Board meeting before or spoken at one but I would like to thank this Board for their courage and I am so happy that I came here this evening because it is so refreshing and wonderful to hear so many supportive, intelligent people who can contribute so many thoughtful ideas. One thing that has struck me in my years here in Mattituck is the idea that we could ultimately have a community where we don't see young children playing. Recently we moved back from Florida, where we saw many, many communities where the only time you saw children playing was during the Christmas vacation when they came to see grandma and grandpa. And it has been my fear here that we will stop seeing young families and the wonderful sound of young children playing on our beaches and in our streets. Because if we lose that, then we lose young people and their dreams and without people and their dreams, we just become a culture of dreamers that does nothing. And I think that when an idea wants to happen, and I think this idea wants to happen, and I would encourage it to happen, I hope that in so doing, in the process of it happening, that the sense of community which I feel is present in large part here, grows within our community. That we don't have antagonism, that we don't have accusations, that we have dialogue and discourse and the working out of the differences and the problems that this very awesome project presents to us. I would also suggest that somehow or other perhaps appoint a community liaison to in some way educate or help educate the community at large to the issues so that when they come together, we can have a meaningful discussion about it. I think that many times things fall through the cracks and wonderful ideas don't get passed because the information has not been adequately or effectively disseminated in the community. So with that thought, I thank you all once again for a very wonderful job. Thank you. SUPERVISOR HORTON: ll~ank you, Mrs. Beckenstein. Thank you. Are there other comments from the floor on this public hearing? Yes. Mrs. Ball. May 18, 2004 Public Hearing - Housing Fund 31 MRS. BALL: Just one small one~ I want to echo Mr. Israel's comment. But it is not going to end because I have eight grandchildren, all within five years of graduating. One, Nicole graduates Southold, she wants to be a pharmacist and work along with Mr. Scott, she is studying, that is her dream. She will not, unless this is enacted, those eight grandchildren, one is studying criminal justice up in Vermont, they all are going to have to leave if something isn't enacted. They will not, you will lose eight of my grandchildren. They will also have to leave, as well as my daughter did. By enacting this, you are going to keep the youth, which will eventually be young families in Southold Town, so please, tonight, please enact it. SUPERVISOR HORTON: Thanks Mrs. Ball. Are there other comments from the floor on this public heating? (No response) We will close this hearing. evil'le~7 Southold Town Clerk ELIZABETH A. NEVILLE TOWN CLERK REGISTRAR OF VITAL STATISTICS MARRIAGE OFFICER RECORDS MANAGEMENT OFFICER FREEDOM OF INFORMATION OFFICER Town Hail, 53095 Main Road P.O. Box 1179 Southold, New York 11971 Fax (631) 765-6145 Telephone (631) 765-1800 sout holdtown.northfork.net OFFICE OF THE TOWN CLERK TOWN OF SOUTHOLD THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 424 OF 2004 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON MAY 18, 2004: WItEREAS there was presented to the Town Board of the Town of Southold, Suffolk County, New York, on the 20th day of April, 2004 a Local Law entitled "A Loeal Law in Relation to the Town of Southold Housing Fund" and WHEREAS the Town Board of the Town of Southold held a public hearing on the aforesaid Local Law at which time all interested persons were heard, now therefor be it RESOLVED that the Town Board of the Town of Southold hereby enacts the following Local Law: A Local Law entitled "A Local Law in Relation to the Town of Southold Housing Fund" reads as follows: LOCAL LAW NO. 12 of 2004 BE IT ENACTED, by the Town Board of the Town of Southold as follows: Section I- Town Code Amended The Town Code of the Town of Southold is hereby amended by adding a new Chapter 98 to read as follows: Chapter 98. Town of Southold Housing Fund. §98-1. Purpose. The Town of Southold Housing Fund will provide the Town with a mechanism to obtain funding and create programs that will increase housing opportunities for families and individuals who are residents of the Town of Southold and/or employed in the Town of Southold who cannot procure affordable housing within the Town. §98-2. Findings. The lack of affordable housing creates many adverse effects for the town. Regional employers grapple with the task of hiring and retaining employees due to the limited availability of affordable housing. Recruiting and retaining essential personnel (police officers, firefighters, teachers, nurses, etc.) has become increasingly a challenge due to the lack of affordable housing. Volunteer emergency services are also impacted by the lack of affordable housing, prompting the possible necessity o f replacing volunteer services with paid employees. While the Town has benefited fi.om increased tourism and second homeownership, it must also sustain a population who can afford to live and work in Town. To address this housing shortage, the Town of Southold must create a myriad of housing initiatives that reinvest in the lives of residents who live and/or work in the Town. The talented and vibrant energy that was and is invested in community land preservation must be replicated to create affordable housing for a sizable number of residents who lack the financial means to rent and/or purchase housing within the Town. The priority population for community housing will be as follows: ,, Income eligible individuals/families who live and work in the Town of Southold who provide volunteer emergency/life saving services for residents of the Town · Income eligible individuals/families who live and work in the Town of Southold · Income eligible individuals/families who live in the Town of Southold · Income eligible individuals/families who work in the Town of Southold · Income eligible individuals/families who previously lived in the Town and wish to return Efforts in the past to create affordable housing have failed in their ability to keep the housing stock affordable upon resale. Therefore, to promote perpetual affordability within the Town, all recipients of said housing will be legally bound to sell their properties to the Town's Housing Fund. Resale price formulas for homes purchased fi.om the Fund will be as follows: Homes sold after pumhase will realize profits that are the equivalent percentage of the Consumer Price Index (CPI) as compiled by the United States Department of Labor. The percentage will be calculated fi.om the date of sale fi.om the Fund to the date of resale to the Fund. In addition, the Fund will compensate the seller for major capital improvements that are improved in advance by the Housing Advisory Commission. Depreciation may be applied to capital improvements. §98-3. Definitions. As used in this section, the following xvords and terms shall have the following meanings: FUND -- the Town of Southold Housing Fund authorized pursuant to this local law. INCOME ELIGIBLE INDIVIDUALS/FAMILIES--- those individuals/families whose incomes are below the designated percentage of the HUD median income for the County of Suffolk, as determined by the Southold Town Board. In addition, individuals/families seeking grant assistance and loans from other public funding sources may be limited to household incomes less than the HUD median income for the County of Suffolk. TOWN --the Toxvn of Southold. HOUSING -- is defined as housing for households whose incomes are not sufficient, pursuant to banking industry standards, to induce private lenders to finance the costs of acquisition of a home with a value at or less than median value as determined by the Town's assessment rolls, without benefit of subsidies or special financing programs from the Town in the case of owner-occupied housing, or in the case of rental housing, as housing for households whose income is insufficient to pay the monthly costs for such housing and maintain such costs within the required percentages of the household's income based upon banking industry standards. §98-4. Fund Established. A. The Town Board hereby establishes a Housing Fund. Deposits into the fund may include revenues of the Town fi.om whatever source, including but not limited to: (1) all revenues from a bond approved pursuant to the local finance law for the purpose increasing affordable community housing opportunities; (2) general fund balances, or surpluses, in accordance with the Town's surplus policy; (3) any proceeds received by the local government from the sale or rental of community housing produced from revenues of the fund; (4) the repayment of any loans issued from proceeds of the fund; (5) any gifts of interests in land or funds; (6) any county, state or federal grants received by the town for providing community housing; (7) any future applicable transfer tax which may be enacted subsequent to the enactment of this legislation; (8) recaptured funds from previous town housing initiatives. B. Interest accrued by monies deposited into the fund shall be credited to the fund. In no event shall monies deposited into the fund be transferred to any other account. C. Nothing contained in this section shall be construed to prevent the financing in whole or in part, pursuant to the local finance law, of any project or purpose authorized pursuant to this chapter. Monies from the fund may be utilized to repay indebtedness or obligations incurred pursuant to the local finance law consistent with effectuating the purposes of this chapter. D. No interest or right in real property shall be acquired pursuant to this chapter until a public hearing has been held before the Town Board, and a resolution has been passed approving the acquisition. However, nothing shall prevent the Town Board fi.om entering into a conditional purchase agreement before a public heating is held. E. No expenditure shall be made pursuant to this chapter until a public hearing has been held before the Town Board, and a resolution has been passed approving the expenditure. F. Any acquisition or expenditure made pursuant to this chapter shall include a finding that it is being authorized in furtherance of the goals set forth in this chapter. §98-5. Purposes of the Fund. The proceeds of the fund established pursuant to §98-4 shall be utilized in accordance with law for the following purposes: (1) the provision of no-interest or low-interest loans to income eligible residents who work and/or live in the Town for the purchase ora first home; (2) the actual production of community housing for sale and resale to income eligible residents who work and/or live the Town; (3) the actual production of community housing for sale to income eligible residents who work and/or live in the Town in conjunction with other public/private partnerships such as the North Fork Housing Alliance and the Community Land Trust of Southold who agree with the stated priority population and income eligibility guidelines; (4) the actual production and maintenance of rental housing for rent to income eligible residents who work and or live in the Town or in conjunction with public/private partnerships who agree with the stated profit guidelines; (5) the rehabilitation of existing buildings and structures in the Town for the purpose of conversion to community housing for sale or rental to income eligible residents who work and/or live in the Town; (6) the provision of housing counseling services by not-for-profit corporations that are authorized by the U. S. Department of Housing and Urban Development to provide said services; (7) the fund will ensure the perpetual affordability of housing through determining resale prices of any home purchased through the fund. This will be accomplished through the following: the Town of Southold reserves the right to require that all housing units purchased through the fund remain affordable in perpetuity. All properties purchased through the fund must be sold back to the fund for resale to income eligible individuals/families who meet the qualifications of defined priority populations. After pumhase, homes may be resold to the fund to potentially realize a profit. Sale prices ~vill be calculated at the original pumhase price (base price) and shall be adjusted by a pementage which is the same as the pementage by which the Consumer Price Index (CPI) (s) increased between the date that the buyer took title to the property and the date that a letter of intent is submitted to the fund to resell the property. Costs for capital improvements approved by the fund's regulations may also be compensated. Capital improvements are additions that provide value to the property above and beyond repairs to maintain the property in good condition. The Housing Advisory Commission must approve in advance all capital improvements. The Commission must be given information regarding the scope of work and estimate of capital costs. If capital improvements are approved, the Commission will determine if the capital improvement may be recouped in the event of resale. The Housing Fund will strive to build housing and sell housing that reflects the diverse needs of those seeking affordable housing that includes household income, bedroom size, etc. B. For the purposes of this Chapter, eligible expenses relating to the production of community housing and the rehabilitation of existing housing stock and structures under the fund shall include but not be limited to land acquisition, planning, engineering, construction costs and other hard and soft costs associated with construction, rehabilitation, purchase or rental of housing pursuant to this section provided that these costs do not exceed 15% of the projected project costs. Litigation expenses may not be covered by this fund. All revenues received by the town from the sale or rental of community homes or the repayment of loans shall be deposited in this fund. §98-6 Housing Advisory Commission Established. A. The Town Board hereby formally establishes a Housing Advisory Commission to review and make recommendations regarding the Town of Southold Housing Fund. This Commission would supplant the efforts of the former "Affordable Housing Committee" that no longer meets as a working group. This Board will consist often (10) residents of the Town who shall serve without compensation. No member of the Town Board shall serve on the Conmaission. The Commission shall reflect a diverse membership with individuals from various geographic locations. In addition, membership will include a broad representation from the community such as landowners, persons with skill and knowledge about the environment, real estate, banking, building and farming. The Commission may also seek members who were/are recipients of housing assistance. B. The Special Projects Coordinator for affordable housing will assist the Commission with administrative tasks such as scheduling meetings, transcribing minutes, etc. The Commission should meet at a minimum of once a month. The primary function of the Commission is to: (1) Ensure that an efficient, cost effective and expedient production of affordable housing is created and maintained. (2) Serve as a liaison for community members within their respective hamlets/villages regarding affordable housing (3) Identify appropriate sites for the development of affordable housing within respective hamlets/villages (4) Approve capital improvement requests from residents living in housing units (5) Make recommendations to the Town Board relating to affordable housing C. The Housing Advisory Commission shall assist the Town Board in the development of a "Housing Implementation Plan". The Housing Implementation Plan. (1) Public Investment. To account for and minimize social, economic, cultural and environmental costs of new development, including infrastructure costs and loss of open space and agricultural land. (2) Development. To encourage development in areas where infi:astructure exists (i.e. parking, public water, etc.), primarily within defined hamlet and halo zones. (3) Conservation. To protect, preserve and enhance the Town's natural resources including farmland, forests, surface water, groundwater, recreation and open space. (4) Coordination. To promote coordination of state and local governments to facilitate cooperative agreements amongst adjacent communities in the interest of ensuring compatibility of community development. (5) Community design. To strengthen communities through the utilization of all income and age groups, mixed land use, compact development, open space districts, planned unit development, and diverse and community housing in close proximity to places of employment, transportation, recreation and commercial development. (6) Consistency. To insure predictability in building and land use codes. (7) Community collaboration. To encourage a collaborative community-based effort for implementation of community housing that includes long term land use. D. Such plan may include the creation of maps that define the Housing Implementation Plan's recommendations proposed by the Town. The plan will not be adopted until after the Town Board has held a public hearing. The plan shall be updated at least every five years. The plan shall be adopted before monies may be expended from the fund. The Housing Implementation Plan shall also assist with guidance in establishing income and other eligibility requirements for community housing, including any eligibility preference that may be given based upon residency or other criteria (e.g. those persons who provide volunteer emergency/life saving services for residents of the Town). The sale and resale of community housing to the general public for other than income eligible priority populations is prohibited. Section II. - Severability. If any clause, sentence, paragraph, section or part of this article shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof but shall be confined in its operation to the clause, sentence, paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. Section III - Effective Date: This article shall take effect immediately upon filing with the Secretary of State as provided by law. Elizabeth A. Neville Southold Town Clerk STATE OF NEW YORK DEPARTMENT OF STATE 4 I STATE STREET ALBANY, NY 1223 I-OOOI GEORGE E PATAKI June 18, 2004 RANDY A. DANIELS Elizabeth A Neville Office of Town Clerk Town Hall 53095 Main Street PO Box 1179 Southold NY 11971 RE: Town of Southold, Local Law 12, 2004 filed on May 27, 2004 To Whom It May Concern: The above referenced material was received and filed by this office as indicated. Additional local law filing forms will be forwarded upon request. Sincerely, Linda Lasch Principal Clerk State Records & Law Bureau (518) 474-2755 NEW YORK STATE DEPARTMENT OF STATE Local Law Filing ,. STATE ,22 , (Use this form to file a local law with the Secretary of State.) Text of law should be given as amended. Do not include matter being eliminated and do not use italics or underlining to indicate new matter. Town of SOUTHOLD LOCAL LAW NO. 12 of 2004 BE IT ENACTED, by the Toxvn Board of the Town of Southold as follows: Section I- Town Code Amended The Toxvn Code of the Town of Southold is hereby amended by adding a nexv Chapter 98 to read as follows: Chapter 98. Town of Southold Housing Fund. §98-1. Purpose. The Town of Southold Housing Fund will provide the Town with a mechanism to obtain funding and create programs that will increase housing opportunities for families and individuals who are residents of the Toxvn of Southold and/or employed in the Town of Southold xvho cannot procure affordable housing xvithin the Town. §98-2. Findings. The lack of affordable housing creates many adverse effects for the town. Regional employers grapple with the task of hiring and retaining employees due to the limited availability of affordable housing. Recruiting and retaining essential personnel (police officers, firefighters, teachers, nurses, etc.) has become increasingly a challenge due to the lack of affordable housing. Volunteer emergency services are also impacted by the lack of affordable housing, prompting the possible necessity of replacing volunteer services xvith paid employees. While the Town has benefited from increased tourism and second homeownership, it must also sustain a population who can afford to live and work in Town. To address this housing shortage, the Town of Southold must create a myriad of housing initiatives that reinvest in the lives of residents who live and/or work in the Town. The talented and vibrant energy that was and is invested in community land preservation must be replicated to create affordable housing for a sizable number of residents xvho lack the financial means to rent and/or pumhase housing within the Toxvn. (If additional space is needed, attach pages the same size as this sheet, and number each.) DOS-239(Re~. 11,'99} ( 1 ) The priority population for community housing will be as folloxvs: · Income eligible individuals/families who live and work in the Town of Southold who provide volunteer emergency/life saving services for residents of the Town · Income eligible individuals/families who live and work in the Town of Southold · Income eligible individuals/families who live in the Town of Southold · Income eligible individuals/families who work in the Town of Southold · Income eligible individuals/families who previously lived in the Town and wish to return Efforts in the past to create affordable housing have failed in their ability to keep the housing stock affordable upon resale. Therefore, to promote perpetual affordability within the Town, all recipients of said housing will be legally bound to sell their properties to the Town's Housing Fund. Resale price formulas for homes purchased fi.om the Fund will be as follows: Homes sold after purchase will realize profits that are the equivalent percentage of the Consumer Price Index (CPI) as compiled by the United States Department of Labor. The percentage will be calculated fi.om the date of sale from the Fund to the date of resale to the Fund. In addition, the Fund will compensate the seller for major capital improvements that are improved in advance by the Housing Advisory Commission. Depreciation may be applied to capital improvements. {}98-3. Definitions. As used in this section, the following words and terms shall have the following meanings: FUND -- the Town of Southold Housing Fund authorized pursuant to this local law. INCOME ELIGIBLE INDIViDUALS/FAMILIES--- those individuals/families whose incomes are below the designated percentage of the HUD median income for the County of Suffolk, as determined by the Southold Town Board. In addition, individuals/families seeking grant assistance and loans from other public funding sources may be limited to household incomes less than the HUD median income for the County of Suffolk. TOWN --the Town of Southold. HOUSING -- is defined as housing for households whose incomes are not sufficient, pursuant to banking industry standards, to induce private lenders to finance the costs of acquisition ora home with a value at or less than median value as determined by the Town's assessment rolls, without benefit of subsidies or special financing programs fi.om the Town in the case of owner-occupied housing, or in the case of rental housing, as housing for households whose income is insufficient to pay the monthly costs for such housing and maintain such costs within the required pementages of the household's income based upon banking industry standards. {}98-4. Fund Established. A. The Town Board hereby establishes a Housing Fund. Deposits into the fund may include revenues of the Town from whatever source, including but not limited to: {1) all revenues fi.om a bond approved pursuant to the local finance law for the purpose increasing affordable community housing opportunities; (2) general fund balances, or surpluses, in accordance with the Town's surplus policy; (3) (4) (5) (6) (7) (8) any proc~l~ received by the local government sale or rental of community housing produced fi.om revenues of the fund; the repayment of any loans issued from proceeds of the fund; any gifts of interests in land or funds; any county, state or federal grants received by the toxvn for providing community housing; any future applicable transfer tax which may be enacted subsequent to the enactment of this legislation; recaptured funds from previous town housing initiatives. B. Interest accrued by monies deposited into the fund shall be credited to the fund. In no event shall monies deposited into the fund be transferred to any other account. C. Nothing contained in this section shall be construed to prevent the financing in whole or in part, pursuant to the local finance law, of any project or purpose authorized pursuant to this chapter. Monies from the fund may be utilized to repay indebtedness or obligations incurred pursuant to the local finance law consistent with effectuating the purposes of this chapter. D. No interest or right in real property shall be acquired pursuant to this chapter until a public hearing has been held before the Town Board, and a resolution has been passed approving the acquisition. However, nothing shall prevent the Town Board from entering into a conditional purchase agreement before a public hearing is held. E. No expenditure shall be made pursuant to this chapter until a public heating has been held before the Town Board, and a resolution has been passed approving the expenditure. F. Any acquisition or expenditure made pursuant to this chapter shall include a finding that it is being authorized in furtherance of the goals set forth in this chapter. §98-5. Purposes of the Fund. The proceeds of the fired established pursuant to §98-4 shall be utilized in accordance with law for the following purposes: (1) the provision of no-interest or low-interest loans to income eligible residents who work and/or live in the Town for the purchase of a first home; (2) the actual production of community housing for sale and resale to income eligible residents who work and/or live the Town; (3) the actual production of community housing for sale to income eligible residents who work and/or live in the Town in conjtmction with other public/private partnerships such as the North Fork Housing Alliance and the Community Land Trust of Southold who agree with the stated priority population and income eligibility guidelines; (4) the actual production and maintenance of rental housing for rent to income eligible residents who work and or live in the Town or in conjunction with public/private partnerships who agree with the stated profit guidelines; (5) the rehabilitation of existing buildings and structures in the Town for the purpose of conversion to community housing for sale or rental to income eligible residents who xvork and/or live in the Town; (6) the provision of housing counseling services by not-for-profit corporations that are authorized by the U. S. Department of Housing and Urban Development to provide said services; (7) the fund will ensure the perpetual affordability of housing through determining resale prices of any home purchased through the fund. This will be accomplished through the 3 Town of Southold reserves the riff uire that all housing units purchased through the fund remain affordable in perpetuity. All properties purchased through the fund must be sold back to the fund for resale to income eligible individuals/families who meet the qualifications of defined priority populations. After purchase, homes may be resold to the fund to potentially realize a profit. Sale prices will be calculated at the original purchase price (base price) and shall be adjusted by a percentage which is the same as the percentage by which the Consumer Price Index (CPI) increased between the date that the buyer took title to the property and the date that a letter of intent is submitted to the fund to resell the property. Costs for capital improvements approved by the fund's regulations may also be compensated. Capital improvements are additions that provide value to the property above and beyond repairs to maintain the property in good condition. The Housing Advisory Commission must approve in advance all capital improvements. The Commission must be given information regarding the scope o f work and estimate o f capital costs. If capital improvements are approved, the Commission will determine if the capital improvement may be recouped in the event of resale. (8) The Housing Fund will strive to build housing and sell housing that reflects the diverse needs of those seeking affordable housing that includes household income, bedroom size, etc. For the purposes of this Chapter, eligible expenses relating to the production of community housing and the rehabilitation of existing housing stock and structures under the fund shall include but not be limited to land acquisition, planning, engineering, construction costs and other hard and soft costs associated with construction, rehabilitation, purchase or rental of housing pursuant to this section provided that these costs do not exceed 15% of the projected project costs. Litigation expenses may not be covered by this fund. All revenues received by the town from the sale or rental of community homes or the repayment of loans shall be deposited in this fund. §98-6 Housing Advisory Commission Established. A. The Town Board hereby formally establishes a Housing Advisory Commission to review and make recommendations regarding the Town of Southold Housing Fund. This Commission would supplant the efforts of the former "Affordable Housing Committee" that no longer meets as a working group. This Board will consist often (10) residents of the Town who shall serve without compensation. No member of the Town Board shall serve on the Commission. The Commission shall reflect a diverse membership with individuals from various geographic locations. In addition, membership will include a broad representation from the community such as landowners, persons with skill and knowledge about the environment, real estate, banking, building and farming. The Commission may also seek members who were/are recipients of housing assistance. B. The Special Projects Coordinator for affordable housing will assist the Commission with administrative tasks such as scheduling meetings, transcribing minutes, etc. The Conunission should meet at a minimum of once a month. The primary function of the Commission is to: (1) Ensure that an efficient, cost effective and expedient production of affordable housing is created and maintained. (2) Serve as a liaison for community members within their respective hamlets/villages regarding affordable housing (3) Identify appropriate sites for the development of affordable housing within respective hamlets/villages (4) Approve capital improvement requests from residents living in housing units 4 (5) Make re~nendations to the Town Board relati~l~ affordable housing C. The Housing Advisory Commission shall assist the Town Board in the development ofa" Housing Implementation Plan". The Housing Implementation Plan. (1) Public Investment. To account for and minimize social, economic, cultural and environmental costs of new development, including infrastructure costs and loss of open space and agricultural land. (2) Development. To encourage development in areas where infrastructure exists (i.e. parking, public water, etc.), primarily within defined hamlet and halo zones. (3) Conservation. To protect, preserve and enhance the Town's natural resoumes including farmland, forests, surface water, groundwater, recreation and open space. (4) Coordination. To promote coordination of state and local governments to facilitate cooperative agreements amongst adjacent communities in the interest of ensuring compatibility of community development. (5) Community design. To strengthen communities through the utilization of all income and age groups, mixed land use, compact development, open space districts, planned unit development, and diverse and community housing in close proximity to places of employment, transportation, recreation and commemial development. (6) Consistency. To insure predictability in building and land use codes. (7) Community collaboration. To encourage a collaborative community-based effort for implementation of community housing that includes long term land use. D. Such plan may include the creation of maps that define the Housing Implementation Plan's recommendations proposed by the Town. The plan will not be adopted until after the Town Board has held a public hearing. The plan shall be updated at least every five years. The plan shall be adopted before monies may be expended from the fund. The Housing Implementation Plan shall also assist with guidance in establishing income and other eligibility requirements for community housing, including any eligibility preference that may be given based upon residency or other criteria (e.g. those persons who provide volunteer emergency/life saving services for residents of the Town). The sale and resale of community housing to the general public for other than income eligible priority populations is prohibited. Section II. - Severability. If any clause, sentence, paragraph, section or part of this article shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof but shall be confined in its operation to the clause, sentence, paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. Section III - Effective Date: This article shall take effect immediately upon filing with the Secretary of State as provided by law. 5 (Complete the certification in the paragraph that applies to the ~ing of this local law and strike out that which is not applicable.) 1. (Final adoption by local legislative body only.) I hereby certify that the local law annexed hereto, designated as local law No. 12 of 20 04 . of the (~m~O(qgitg~Town) te¥.i~4q~) of SOUTHOLD was duly passed by the TOWN BOARD on May 18 ~ 20 04 , in accordance ~vith thc applicable provisions of law. 2. (Passage by local legislative body with approval, no disapproval or repassage after disapproval by the Elective Chief Executive Officer*.) I hereby certify that the local law annexed hereto, designated as local law No. of 20 of the (County)(City)(Town)(Village) of was duly passed by the on 20 , and was (approved)(not approved)(repassed after disapproval) by the and was deemed duly adopted on 20 in accordance with the applicable provisions of law. 3. (Final adoption by referendum.) I hereby certify that the local law annexed hereto, designated as local law No. of 20__ of the (County)(City)(Town)(Village) of was duly passed by the on 20 , and was (approved)(not approved)(repassed after disapproval) by the on 20 . Such local law was submitted to the people by reason of a (mandatory)(permissive) referendum, and received the affirmative vote of a majority of the qualified electors voting thereon at the (general)(special)(annual) election held on 20 , in accordance with the applicable provisions of law. 4. (Subject to permissive referendum and final adoption because no valid petition was filed requesting referendum.) I hereby certify that the local law annexed hereto, designated as local law No. of 20 of the (County)(City)(Town)(Village) of was duly passed by the on 20 , and was (approved)(not approved) (repassed after disapproval) by the on 20__ Such local law was subject to permissive referendum and no valid petition requesting such referendum was filed as of 20 , in accordance with the applicable provisions of law. * Elective Chief Executive Officer means or Includes the chief executive officer of a county elected on a county- wide basis or, If there be none, the chairperson of the county legislative body, the mayor ora city or village, or the supervisor of a town where such officer is vested with the power to approve or veto local laws or ordinances. (2) 5. (City local law concerning Charter revision proposed by petition.) I hereby certify that the local law annexed hereto, designated as local law No. of 20 __ of the City of having been submitted to referendum pursuant to the provisions of section (36)(37) of the Municipal Home Rule Law, and having received the affirmative vote of a majority of the qualified electors of such city voting thereon at the (special)(general) election held on 20 became operative. 6. (County. local law concerning adoption of Charter.) I hereby certify that the local law annexed hereto, designated as local law No of 20 of the County of State of New York, having been submitted to the electors at the General Election of November 20 , pursuant to subdivisions 5 and 7 of section 33 of the Municipal Home Rule Law, and having received the affirmative vote of a majority of the qualified electors of the cities of said county as a unit and a majority of the qualified electors of the toxvns of said county considered as a unit voting at said general election, became operative. (If any other authorized form of final adoption has been followed, please provide an appropriate cerfification.) I further certify that I have compared the preceding local law with the original on file in this office and that the same is a correct transcript therefrom and of the whole of such original local law, and was finally adopted in the manner indicated in paragraph 1 , above. C~-rk of ~oun[y legislative I~od¥. City.~.l~wn or Village Clerk or officer designated by local leg/slative body Elizabeth A. Neville, Town Clerk (Seal) Date: May 25, 2004 (Certification to be executed by County Attorney, Corporation Counsel, Town Attorney, Village Attorney or other authorized attorney of locality.) STATE OF NEW YORK COUNTY OF SUFFOLK I, t~e undersigned, hereby certify that the foregoing local law cjn]ttains the correct text and that all proper proceedings ha~ e been had or taken for the enactment of the local law an~//~~A~ / Patricia A. FinneRa~F~q. To"wn~Attorney Title Town of SOUTHOLD Date: May 25, 2004 7 ELIZABETH A. NEVILLE TOWN CLERK REGISTRAR OF V[T.a~L STATIST[CS MARRIAGE OFFICER RECORDS MANAGEMENT OFFICER FREEDOM OF INFORM-~.TION OFFICER Town Hail, 53095 Main Road P.O. Box 1179 Southold, New York 11971 Fax (631) 765-6145 Telephone (631) 765-1800 southoldtown.nort h fork.net OFFICE OF THE TOWN CLERK TOWN OF SOUTHOLD THIS IS TO CERTII~' THAT THE FOLLOWING RESOLUTION NO. 423 OF 2004 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON MAY 18, 2004: RESOLVED that the Town Board of the Town of Southold hereby finds that the proposed Local Law entitled "A Local Law in Relation to the Town of Southold Workforee Housing Fund" is classified as a Type II Action pursuant to SEQRA Rules and Regulations~ 6 NYCRR Section 617.5~ and is not subject to review under SEQRA. Elizabeth A. Neville Southold Town Clerk PLANNING BOARD MEMB JERILYN B. WOODHOUSE Chair RICHARD CAGGIANO WILLIAM J. CREMERS KENNETH L. EDWARDS MARTIN H. SIDOR P.O. Box 1179 Town Hall, 53095 State Route 25 $outhold, New York 11971-0959 Telephone (631) 765-1938 Fax (631) 765-3136 PLANNING BOARD OFFICE TOWN OF SOUTHOLD To: Elizabeth Neville, Town Clerk~, .~_~. ~t ----' ' ~ ~ From: Jerilyn Woodhouse, Chair y',~°*~r4*/2"-~-/~/~/~ Re: Local Law in Relation to Southold Workforce Housing Fund Date: May 17, 2004 The Planning Board has reviewed the draft legislation to create a Workforce Housing Fund. It supports the concept of a Housing Fund and an Advisory Commission to assist the Special Projects Coordinator for Workforce Housing. #6043 STATE OF NEW YORK) )SS: COUNTY OF SUFFOLK) Joan Ann Weber of Mattituck, in said county, being duly sworn, says that he/she is Principal clerk of THE SUFFOLK TIMES, a weekly newspaper, published at Mattituck, in the Town of Southold, County of Suffolk and State of New York, and that the Notice of which the annexed is a printed copy, has been regularly published in said Newspaper once each week for 1 weeks successively, commencing on the 29th day of April ,2004. CHRISTINA VOLINSKI NOTARY PUBLIC-STATE OF NEW YORK No, 01-VO6105050 Qualified in Suffolk County · zs~an ExDIres February 28, 2008 ']L..'~-~/ Sworn to berate me this 2004 Principal Clerk Regional employers grappl9 with th~' task of hiring and retaining employees due to the limited availability of afford- piled by the United States Department t'00~ '0[ I~d¥ :pe!uQ of Labor. The percentage will be calcu NO~ICE OF hted from the date of sale from the PUBLIC HEARING NOTICE IS HEREBy GIVEN that there was presented to the Town Board of the Town of Southold, Suffolk Count),, New York, on the 20th da5 of April, 2004 a Local Law entitled "A ?e~.J L.a.w.j~ .Re. lation__to the Town or ,~und to the date of resale to the Fund. ~n addition, the Fund ~ill compensate {~e seller for major capital Lmprove- ~ents that are improved in advance by the Workforce Housing Advisory Commission. Depreciation may be applied to capital improvements. housing. C. The Work force Housing Advisory Commission shall assist the Town Bo~d in the development of a "Workforce Housing [mple~nentation Plan." The Workforce Housing Implementation Plan. (l) Pnhtic Investment. To account for and minimize social, economic. cuhuml and environmental costs of new development, including infrastruc- ture costs and loss of open space and agricultural land. (2) Development. To encourage development in areas where infrasumc- ture exists (i.e. parkJng, public water. etc.), primarily within defined hamlet and halo zones. (31 Conservation. To protect, pre- serve and enhance the Town's natural resources including farmland, forests. surface water, groundwater, recreation and open space. 14l Coordination. To promote coor- dinatlon of state and local governments to facilitate cooperative agreements amongst adjacent communities in the interest of ensuring compatibility of community development. (5) Community design. To strength- en communities through the utilization of all income and age groups, mixed land use. compact development, open space districts, planned unit develop- ment, and diverse and community housing in close proximity to places of employment, transportation, recreation and commercial development. (6) Consistency, To insure pre- dictability in building and land use codes. 17) Community collaboration. To encourage a collaborative community- based effort for implementation of community housing that includes long term land use. D, Such plan may include the cre- ation of maps that define the Workforce Housing Implementation Plan's recom- mendations proposed by the Town, E. The plan will not be adopted until after the Town Board has held a public heating. The plan shall be updated at least every five years, The plan shall be adopted before monies may be expend- ed from the fund. F. The Workforce Housing Implementation Plan shall also assist with guidance in establishing income and other eligibility requirements for community housing, including any eli- gibility preference that may be given based upon residency or other cdterla te.g. those persons who provide volun- teer emergency/life saving services for residents of the Town). The sale and resale of community housing to the general public for other than income eligible priori~ populations is prohibil- ed. Section H. - Severability. [f any clause, sentence, paragraph, section or part of this article shall be adjudged by any com~ of competent jurisdiction to be invalid, such judg- ment shall not affect, impair or inxali- date the remainder thereof but shall be oworn [0 De[ore me this 2004 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that there w~s presented to the Town Board of the Town of Southo[d, Suffolk CounW. New York. on the 20th day of April. 2004 a Local Law emided "A Local Law in Relation to the Town of Southoid WorkTorce Housing Fund" and NOTICE IS HEREBY FURTHER GIVEN that the Town Board of the Town of Southold will hold a public hearing on the aforesaid Local Law on May 18 at 8:05 p.m.. at which time all interested persons will be given an opportunity to be heard. The proposed Local Law emit[ed Local Law in Relation to the Town of Southold Workforce Housing Fund" LOCAL LAW NO. of 2004 To~ n of Southold Workforce Housing Fund: a new Chapter 98 to read as Ibllows: §98-1. Purpose, Thc Town of Southold Worktbece Town of Soulhold and/or employed in §98-2. Findings. The lack of affordable housing crc- Regional employers grapple with the task of hiring and relaining employees due Io the limited availabthty of afl~rd able housing. Recruiting and retaimng become increasingly a challenge due to the lack of affordable housing. impacted by the lack of affordable housing, prompting the possible heres sit5' of replacing volunteer service, with paid employees. While the Town afford to live and work in Town. To address this housing shortage, the Town of Southold must create a myriad of housing initiatives that reinvest in the lives of residents who tire and/or be replicated to create affordable hous- ing for a sizable number of residents and/or purchase housing within the Town. The priority population for commu inty housing will be as follows: · Income eligible individuals/fami- lies who live and work in the Town of gency/life saving services for residen~ of the Town · Income eligible individuals/fatal- lies who live and work in the Town of Southold · Income eligible individuals/fami- lies who live in the Town of Southold · Income eligible individuals/fatal- lies who work ~n the Town of Southold · Income eligible individuals/l~mi- lies who previously lived in the Town and wish to return Efforts in the past to create afford- able housing have failed in theh- ability to keep the housing stock affordable petua[ affordability within the Town. all recipients of said housing will be legally bound to sell their propertie* to Ihe Town's Workforce Housing Fund. Resale price t~rmulas for homes pot chased from the Fund will be as fol ba~ed upon banking induslvy ~tandard~. §98-4. Fund Established. A. The Town Board hereby estah lishes a Workforee Hou,ing Fund Deposit, into the fund ma;* include source, incinding but not linmed (Ii all revenue~ from a bond approved porsuant to the loc-al hnance law lk~r the purpose increasing afford- able community hou,ing opportunibes: (21 general fund balances, or ~ur pluses, in accordance wilh the surplus policy: (31 any proceeds rece~xed by the rental of community ho~ing prodtlccd from revenues of the fund; ~4) the repayment of an) Ioan~ issued from proceeds ol the ruud: 15) any gill,; of interesl, in land or funds; (6~ any county. ~tate or federal grants received b) the to~ n fur pr~ ill ins commundy housing; (7) any future applicable transfer tax ~hich may be enacted ~ub~equenl to the enactment of this [e?,latinn: (81 recaptured fund~ from previou~ town hou,ing iintlatwes. B. Intere,t accrued by monies deposited into the fund shall Ix- credit ed to the fund. In no e~ent shall mome~ deposited into the fund be tran~lerred C. Nothing contained in this *ectinn shah be construed to prevent the financing in whole or in part, purguanl to the locaJ finance law. of an) proJect or purpose auinorized pursuant to this chapter. Moines from the fund ma) be utilized to repay indebtednes, or obhg ations incurred pursuant to the local ins the purpose, of thl, chapter E. No expenditure shall be made §98-5. Purposes of the Fund.