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HomeMy WebLinkAboutTown Board Charges/DutiesMay 18, 2004 Southold Town Board Meeting 2O This resolution was duly ADOPTED. Moved by Justice Evans, seconded by Councilman Ross, it was RESOLVED that the Town Board meeting be and hereby is declared recessed in order to hold a public hearing on the matter of HEARING ON "A LOCAL LAW llq RELATION TO TltE TOWN OF SOUTltOLD WORKFORCE HOUSING FUND" Vote of the Town Board: Aye: Councilman Edwards, Councilman Ross, Councilman Wickham, Councilman Romanelli, Justice Evans, Supervisor Horton. This resolution was duly ADOPTED. Meeting reconvened at SUPERVISOR HORTON: I think we have to address three small changes on the first point: No individual family who purchases the home from the fund may sell their home for a profit within the first five years, we should make that consistent with the direction we are going with the AHD and eliminate that. Strike that. And under income eligible, individual families; the third sentence down where it says meeting income for the County of Suffolk, we should have 'as determined by the Town Board by resolution.' TOWN ATTORNEY FINNEGAN: Correct. SUPERVISOR HORTON: In addition to that. So that will be read into the record and those changes will be made to this version. TOWN ATTORNEY FINNEGAN: Also, in section 98-5A7 the same change as reflected in the findings section, with regard to no profit realized during the first five years. SUPERVISOR HORTON: Okay and one other small change I would like to offer to the Board, came to me from a member of the Planning Board and that is Bill Cremers, who - and it is very minor and fairly inconsequential - but 1 think it is also large in some aspect and that is the name of the fund being Southold Town Workforce Housing Fund, take the term Workforce out of that because in essence, it is a housing fund and that will reach every aspect of our community, age wise. Age inclusive, senior citizens and people who are still young working families. g424 Moved by Councilman Romanelli, seconded by Councilman Wickham, WHEREAS 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 Local 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: May 18, 2004 21 Southold Town Board Meeting 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 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 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 from the Fund will be as follows: · Homes sold at, er 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 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 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 May 18, 2004 22 Southold Town Board Meeting 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 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 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 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 girls 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 ora first home; May 18, 2004 Southold Town Board Meeting 23 (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 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 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 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 sot~ 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 May 18, 2004 24 Southold Town Board Meeting 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 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 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 Housing Implementation Plan's recommendations proposed by the Town. May 18, 2004 25 Southold Town Board Meeting E. 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. F. 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. SUPERVISOR HORTON: This will be a roll call vote. Prior to going to a vote, I offer the opportunity for discussion from the Town Board. COUNCILMAN EDWARDS: 1 would like to say a few words about this piece of legislation. To me it is the Town Board keeping a promise to this community. This fund lays a permanent fiscal foundation, structure - I should say, for an affordable housing program. It is not a one shot program, it is an ongoing commitment to the future. If we do nothing in the face of the crisis we do face, we will lose the town as we know it. I am proud and delighted to vote yes. COUNCiLMAN ROSS: I also, am looking forward to our continuing efforts to address this issue, it is a massive issue and a difficult issue and I am happy to be serving with these Board members who are tackling it head on. I vote yes. COUNCILMAN ROMANELLI: Yes, and I would just like to thank this Board too, for hitting this issue head on, hitting the AHD zone change, code change on. It has been a pleasure working on these subjects with this Board. And I vote yes on this. SUPERVISOR HORTON: I am also going to point out Philip Belz did a tremendous job researching this legislation and bringing it to the Town Board. Tanya, thank you for your help. Reverend Clements and Reverend DeArmitt, thank you for your guidance and we look forward to working with you. And actually Melanie and Mr. Blum, I appreciate your input and I want you to know I am listening to it carefully and your questions are all good questions, of which I don't always have the sharp answer to but you seem to be able to craft questions in such a quick manner, you sometimes leave me in the dust. And I mean that in all sincerity. And I appreciate them and the Town Planning Department was instrumental in this and I also want to thank, he was a Supervisor - he is now a Legislator, Jay Schneiderman from East Hampton for providing some input and guidance in this. And thank you for coming out for this public hearing and voicing many of the pros and cons that have to be looked at and John, back in October, I don't think many people would have bet that you and I would be working on this issue so well together and I take my hat off to you. COUNCILMAN ROMANELLI: It has been a pleasure, same here. SUPERVISOR HORTON: And the entire Town Board, so yes. Vote of the Town Board: Aye: Councilman Edwards, Councilman Ross, Councilman Wickham, Councilman Romanelli, Justice Evans, Supervisor Horton. This resolution was duly ADOPTED.