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:
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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
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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;
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Southold Town Board Meeting
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(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
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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.
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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.