HomeMy WebLinkAboutPolicies and Procedures 2015
TOWN OF SOUTHOLD
AFFORDABLE HOUSING PROGRAMS
POLICIES AND PROCEDURES
July 2015
Town of Southold Affordable Housing Policies and Procedures
Introduction:
Because of escalating costs of real estate in the region, the
Town of Southold developed legislation to promote affordable
housing opportunities for households that may not be able to remain
in the Town without some form of assistance. Much of this
legislation provides the framework to develop a formal Housing
Policies and Procedure manual to further explain housing practices
and expectations. All income eligible households who qualify for
available housing will receive a copy of this manual and they will be
asked to attest to receiving this document.
The goal of the Town’s Affordable Housing programs is to
provide housing opportunities for those households with a
demonstrated need based on income. In addition, the programs are
designed to retain an inventory of affordable housing that will
continue to provide housing below the market rate for future
generations. Affordable housing is not limited to home ownership but
also includes apartment rentals.
The development of affordable housing will be fostered through
several factors. The Town will partner with the County of Suffolk’s
Department of Economic Development and Workforce Housing to
obtain funding towards the purchase of land and/or the improvement
of infrastructure. In addition, the Town’s Subdivision Code mandates
that affordable housing be provided in residential subdivisions
involving the creation of five (5) or more lots. Housing will be built
through regional non-profit housing providers as well as for-profit
housing developers.
The office of Special Projects Coordinator (SPC) administers
the Town’s affordable housing programs. Information garnered from
housing applications is maintained within the Town of Southold’s
Housing Registry database. The registry functions as the Town’s
“waiting list” for persons certified as eligible for affordable housing.
Applicants are responsible to ensure that updated information is
provided to the SPC such as changes in income, address, etc.
Periodically the waiting list is updated and applications are purged if
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Town of Southold Affordable Housing Policies and Procedures
applicants cannot be contacted by mail. Some of the housing
administration will be shared with or provided by non-profit housing
providers that specialize in specific housing procedures (income
verification, credit counseling, mortgage counseling, lottery
administration, etc.)
These Affordable Housing Policies and Procedures may be
periodically changed by resolution of the Town Board. To the extent
that any provision herein is in conflict with any provision of the Town
Code, the Town Code provision shall govern.
GUIDELINES FOR ALL HOUSING ASSISTANCE
Qualifications Necessary to Apply for Housing Assistance:
To qualify for affordable housing assistance from the Town,
households must verify that they are United States citizens or have
eligible immigration status. In addition, the following limitations and
restrictions are necessary to qualify:
Income:
Annual household income for year 2015 is no greater than the
following:
Household Size Annual Income
01 $ 91,550
02 $ 104,650
03 $ 117,700
04 $130,800
05 $141,250
06 $151,750
Note: The Office of Housing and Urban Development (HUD)
establishes income guidelines yearly for the counties of Nassau and
Suffolk. The above noted amounts represent 120% of the Nassau
and Suffolk median income. However, the Town Board has
mandated that at least one-half of affordable housing must be
targeted to households earning less than 80% of the Nassau and
Suffolk median income.
The Town Board may determine specific income targets as affordable
housing developments are proposed. In addition, income guidelines
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Town of Southold Affordable Housing Policies and Procedures
may be site specific according to proposed developers (e.g. 80%
median income, 100% area median income, etc.) In addition income
restrictions may vary due to subsidies affiliated with specific projects
such as the Cottages at Mattituck that requires that resale of unit are
provided to either 100% or less median income or 80% or less (i.e.
households earning 120% or less would not qualify for subsidies.)
Residency Requirements/Priority Population:
1. Income eligible individuals or families who have lived in the
Town of Southold in the same school district as the proposed
affordable housing dwelling unit or lot for a period of at least
three (3) years prior to application submission.
2. Income eligible individuals or families who have lived in the
Town of Southold for a period of at least three (3) years prior to
application submission.
3. Income eligible individuals or families who have been employed
in the Town of Southold for a period of at least three (3) years
prior to application submission.
4. Income eligible individuals or families who previously lived for a
minimum of three (3) years in the Town of Southold and wish to
return.
5. Other income eligible applicants.
Asset Limitations:
Applicants may not own real property** (including vacant land
or a mobile home secured to the ground) and,
Total net worth of applicant’s household cannot be greater than
25% of the purchase price of the home (if applicable). Total net
worth of applicants shall include all liquid assets (including
personal property valued at $10,000 or more—cars, boats,
jewelry, etc.) less debt. Note: Liquid assets shall not include
sheltered assets, trusts, Individual Retirement Accounts (IRA’s),
401K’s and other federally recognized tax-deferred vehicles.
**Not applicable for residents seeking age-restricted housing.
Determination of Eligibility:
Applications for housing assistance will be reviewed to determine
eligibility for qualified households. In some instances the
determination of eligibility will vary by sites, as specific funding
resources leveraged for affordable housing will have different
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Town of Southold Affordable Housing Policies and Procedures
eligibility requirements. All determinations will be made in writing.
Reasons for denying eligibility may include the following:
Not income eligible
Poor credit history
Inability to verify income and/or residency
Inability to procure mortgage or other financing (where
applicable)
Lack of legal immigration status
Materially false statements or omissions on the application
Previously committed fraud with other housing programs
Breached an agreement to repay other housing agencies
Certification of Eligibility:
Households that meet the above mentioned threshold would receive
a Certificate of Eligibility issued by the Special Projects Coordinator.
The Certificate is issued not until housing inventory (rental and home
ownership) is available or nearly available for occupancy.
RENTAL PROGRAM GUIDELINES
The following regulations apply to apartment rentals to qualify for
affordable housing assistance:
Household income may not exceed income guidelines as noted
on page 3. All proposed rental applicants must have a letter
from the Office of Special Projects Coordinator certifying
income eligibility.
Landlords have the ability and responsibility to select income
eligible tenants from the Housing Registry or identify
households who would qualify for eligibility on the housing
registry. When necessary, the Special Projects Coordinator will
provide landlords a list of prospective tenants (e.g. those
households requesting rental assistance within the Town’s
Housing Registry)
Landlords and tenants are bound by the terms of the negotiated
lease that they sign. All leases must be provided to the Town
Clerk and will be reviewed by the Special Projects Coordinator.
As such, the lease should stipulate agreed upon expectations
by both parties.
In some instances, funding sources and finances used for the
construction and rehabilitation of apartments may further
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Town of Southold Affordable Housing Policies and Procedures
determine or restrict income eligibility and family composition
(e.g. age/sex of children/number of children, etc.)
When necessary, landlord/tenant disputes will be addressed by
the Housing Advisory Commission in the event that the Special
Projects Coordinator is unable to resolve an issue.
Rental Pricing Guidelines:
The Town utilizes the U.S. Dept. of HUD-Nassau/Suffolk LOW HOME
rental guidelines.
For 2015, rental costs*** may not exceed:
Efficiency - $953
One bedroom - $1,021
Two bedroom - $1,226
Three bedroom - $1,417
Four bedrooms - $1,581
***May or may not include utilities; this is at the discretion of
landlords.
HOME OWNERSHIP PROGRAM GUIDELINES
Home Ownership Sales Price:
Listed below are the maximum sales price for homeownership
opportunities for 2015:
Households earning 80% or less of the HUD
median income (for Nassau/Suffolk) $218,000
Households earning 100% or less of the HUD
median income (for Nassau/Suffolk) $272,500
Households earning 120% or less of the HUD
Median income (for Nassau/Suffolk) $327,000
Note: The sales price limitation may change annually by resolution of
the Town Board as HUD income guidelines change. Note that sales
prices are for housing units created in 2015, not housing units built
before 2015.
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Town of Southold Affordable Housing Policies and Procedures
Lottery Selection Process
Lotteries may be necessary when demand exceeds supply for
affordable housing programs. A Certificate of Eligibility is required to
participate in the lottery selection process. Determination of eligibility
for prospective homebuyers is articulated above (pages 4 & 5),
including the ability to obtain a mortgage at closing date. Those
households who are certified as eligible and able to get financing
(mortgage commitment) to purchase homes offered through the
Town’s Affordable Housing Programs will participate in a lottery.
Waiting Lists
Housing providers will have the option to establish site-specific
waiting lists for properties once all units have been filled. Households
on waiting lists will still have the opportunity to avail themselves of
any other proposed affordable housing developments while on the
waiting list.
When demand exceeds supply for available housing units, a lottery is
administered for all qualifying applicants (income-eligible, priority
school district, etc.) in order to award a unit. Additional drawings will
be held as necessary to establish a waiting list of those households
not selected (#2, #3, #4, etc.) Those households will retain their
eligibility based on their rank after the lottery should additional
housing units become available. As units become available,
applicants will be further vetted to ensure that they remain
“qualified” (income- eligible, priority school district, etc.) An
additional lottery will be administered to new applicants once
names of eligible households on the waiting list have been
offered affordable units and the list of names on the waiting list
is exhausted.
Perpetual Affordability:
In an effort to maintain an inventory of affordable housing, the Town
of Southold has mandated that when homes are resold, market
forces cannot dictate the profits one can realize. (The resale at
market prices has allowed previous recipients of affordable housing
to sell their homes for significant profits.) The Town’s current
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Town of Southold Affordable Housing Policies and Procedures
affordable housing legislation attempts to balance the need to keep
homes affordable while also fairly rewarding homebuyers.
Resale Guidelines:
Homes may be sold only to households that are certified as needing
housing on the Town’s Housing Registry. In addition to realizing
benefits of home ownership through income tax deductions, the Town
allows the resale of homes to reflect the percentage increase of the
Consumer Price Index (CPI) from the date of purchase to the date of
resale. The CPI is issued by the United States Department of Labor-
Bureau of Labor Statistics to capture cost of living increases as well
as other economic variables.
Permanent Fixed Home Improvements:
The Town of Southold is pleased to support its Affordable Housing
Programs and expects that its recipients will make every effort to
keep their homes and apartments in excellent condition through
maintenance, general repairs and upkeep. While a goal of the
Town’s Affordable Housing Programs is to create and rehabilitate
affordable housing, another goal is to keep housing units perpetually
affordable. Therefore the Town does not encourage many
improvements to its affordable housing inventory that will make the
units no longer affordable at resale.
The Town recognizes that homeowners may wish to make some
limited permanent fixed improvements to their properties. A
permanent fixed improvement is defined as an improvement to a
property, including the dwelling unit, which frequently cannot be
removed, and which may add value to the property and may result in
a reassessment of the property. Prior to completing any
improvements, homeowners must seek approval of the Housing
Advisory Commission, appointed by the Town Board, which is
charged with making decisions regarding permanent fixed
improvements.
Criteria guiding decisions made by the Housing Advisory Commission
include:
Will the proposed improvement comply with current zoning?
Will the proposed improvement have an adverse impact on
physical or environmental conditions within the community?
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Town of Southold Affordable Housing Policies and Procedures
Will the proposed improvement create an undesirable change
in the character of the neighborhood or a detriment to nearby
properties?
The reason(s) for the requested improvement.
The Special Projects Coordinator will provide homeowners with policy
guidelines regarding permanent fixed improvements. The policy is
designed to minimize the return of financial equity on permanent fixed
improvements to ensure that properties remain affordable in
perpetuity. To further ensure perpetual affordability, the Permanent
Fixed Improvements policy mandates that the total increase of
value of permanent fixed improvements may not exceed 5% of
the original purchase price of the home.
Maintenance and Upkeep:
Dwelling units shall be maintained in accordance with the provisions
of the Property Maintenance Code of New York State. A copy of this
document will be provided to all households who participate in the
Town’s Affordable Housing Programs.
Failure to comply with this section shall be a violation punishable by a
fine of not less than $250.00 and not more than $1000.00.
Enforcement and Penalties:
The enforcement of policies and procedures relating to the Town’s
affordable housing initiatives rests with the Town Attorney and the
Special Projects Coordinator. The Town requires that all prospective
housing opportunities comply with federal, state and local fair housing
laws.
Penalties for offenses shall be punishable in the following manner:
A. First offense: by a fine of not less than $1,000 nor more than
$5,000.
B. Second offense and for any offense thereafter: by a fine of not
less than $5,000 and not more than $10,000 for each offense.
C. Any offense may be punishable by revocation of an existing
certificate of occupancy.
D. Any household/individual who violates affordable housing
program policies and procedures (including covenants and
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Town of Southold Affordable Housing Policies and Procedures
restrictions) shall be prohibited from further participation in the Town’s
affordable housing opportunities and benefits.
Covenants and Restrictions:
Households that avail of home ownership opportunities from the
Town of Southold’s Affordable Housing Programs must execute
covenants and restrictions that will be filed with the County of Suffolk
and run with the property. This legal document governs the many
policies articulated herein (e.g. perpetual affordability terms, etc.).
Covenants and restrictions are recorded in the deed between buyer
and seller. The provisions of covenants and restrictions legally bind
prospective buyers.
Questions Concerning the Policies and Procedures Manual:
If you have any questions concerning this document, please contact
the Special Projects Coordinator at #765-5806.
Any changes to the Town of Southold’s Affordable Housing Policies
and Procedures are subject to approval of the Town Board.
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