LBD00813-01-5
S. 317 2 A. 33
moderate income and working class residents is in critically short
supply.
The adverse impacts from this shortage of housing opportunities are
critical. For example, local employers have difficulty hiring and
retaining employees because of housing costs and availability. Local
volunteer emergency services agencies experience difficulty in recruit-
ment and retention. Long time residents are forced to leave the area.
Traffic congestion is exacerbated by the importation of labor from areas
with lower housing costs. Other land uses such as motels are being
converted to emergency and permanent housing. Finally, the lack of
affordable housing is resulting in residents being forced to live in
substandard, illegal conditions.
Unique demographics and economics in the Peconic Bay region, and a
lack of affordable dwelling units, are creating this housing shortage.
The combination of the Peconic Bay region's attractiveness, proximity to
the dense population of the New York metropolitan region, and proximity
to that region's extraordinary wealth, makes the Peconic Bay region a
prime location for seasonal and luxury homes.
While this combination of extraordinary attractiveness, population and
wealth has created a strong local economy for the Peconic Bay region, it
has resulted in housing problems for local families.
In summary, the demand of land for luxury and seasonal homes and
seasonal rentals has left a short supply of housing opportunities for
moderate income and working class local residents. The Peconic Bay
region needs a balanced housing policy where there exists a variety of
housing types and opportunities across the region's economic spectrum.
The Peconic Bay region requires the same creativity, planning, and
community consensus that resulted in the community preservation fund in
order to address the issue of housing opportunity. Further, increased
housing opportunities must be accomplished in the context of rational
long term planning.
It is the purpose of this legislation, to give the towns of the Pecon-
ic Bay region the authority and resources needed to establish community
housing opportunities. Specifically, this legislation would permit each
town to establish a dedicated community housing opportunity fund to
increase housing opportunities in the region. Such fund shall be
financed by a combination of state and local funds. Further, a town
housing plan adhering to smart growth principles would be required to be
approved and implemented to insure that these new housing opportunities
are enacted in the context of a comprehensive plan. The fund shall be
enacted by local law subject to a mandatory referendum.
S 2. This act shall be known and may be cited as the "Peconic Bay
region community housing opportunity act".
S 3. The town law is amended by adding a new section 64-k to read as
follows:
S 64-K. PECONIC BAY REGION COMMUNITY HOUSING OPPORTUNITY FUND. 1.
DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING WORDS AND TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(A) "PECONIC BAY REGION" MEANS THE TOWNS OF EAST HAMPTON, RIVERHEAD,
SHELTER ISLAND, SOUTHAMPTON, AND SOUTHOLD.
(B) "COMMUNITY HOUSING" SHALL BE DEFINED AS HOUSING FOR HOUSEHOLDS
WITH INCOMES AT OR BELOW THE MEDIAN INCOME FOR EACH TOWN WITHIN THE
PECONIC BAY REGION.
(C) "BOARD" MEANS THE ADVISORY BOARD CREATED PURSUANT TO THIS SECTION.
(D) "FUND" MEANS THE COMMUNITY HOUSING OPPORTUNITY FUND AUTHORIZED
PURSUANT TO THIS SECTION.
S. 317 3 A. 33
(E) "EDUCATION IMPACT PAYMENT" MEANS A PAYMENT MADE FROM THE FUND TO
SCHOOL DISTRICTS NOT TO EXCEED AN AMOUNT EQUAL TO THE ADDITIONAL ANNUAL
COST OF EDUCATING THE NUMBER OF STUDENTS THAT WILL BE ADDED TO A SCHOOL
DISTRICT AS A RESULT OF THE PRODUCTION OF COMMUNITY HOUSING PURSUANT TO
THE FUND.
2. FUND AUTHORIZED. THE TOWN BOARD OF ANY TOWN IN THE PECONIC BAY
REGION IS AUTHORIZED TO ESTABLISH BY LOCAL LAW A COMMUNITY HOUSING
OPPORTUNITY FUND, PURSUANT TO THE PROVISIONS OF THIS SECTION. DEPOSITS
INTO THE FUND MAY INCLUDE REVENUES OF THE LOCAL GOVERNMENT FROM WHATEVER
SOURCE, INCLUDING BUT NOT LIMITED TO: (A) ALL PROCEEDS FROM ANY INDEBT-
EDNESS OR OBLIGATIONS ISSUED PURSUANT TO THE LOCAL FINANCE LAW FOR
COMMUNITY HOUSING OPPORTUNITY PURPOSES AS PROVIDED FOR IN SUBDIVISION
THREE OF THIS SECTION; (B) GENERAL FUND BALANCES OR SURPLUSES; (C) FUNDS
RECEIVED BY THE TOWN FROM THE APPORTIONMENT OF MORTGAGE RECORDING TAXES
RECEIVED FROM THE COUNTY PURSUANT TO ARTICLE ELEVEN OF THE TAX LAW; (D)
FUNDS RECEIVED BY THE TOWN FROM THE SALE OF DEVELOPMENT RIGHTS FROM A
CENTRAL BANK CREATED PURSUANT TO SECTION SIXTY-FOUR-E OF THIS ARTICLE;
(E) ANY PROCEEDS RECEIVED BY THE LOCAL GOVERNMENT FROM THE SALE OF
AFFORDABLE HOUSING PRODUCED FROM REVENUES OF THE FUND; (F) THE REPAYMENT
OF ANY LOANS ISSUED FROM PROCEEDS OF THE FUND; (G) ANY GIFTS OF INTER-
ESTS IN LAND OR FUNDS; (H) ANY STATE OR FEDERAL GRANTS RECEIVED BY THE
TOWN FOR PROVIDING AFFORDABLE HOMES; AND (I) FUNDS RECEIVED BY THE TOWN
FROM FEES PAID TO THE TOWN PURSUANT TO AN INCLUSIONARY ZONING LAW WHERE
AUTHORIZED BY THE LEGISLATURE. INTEREST ACCRUED BY MONIES DEPOSITED INTO
THE FUND SHALL BE CREDITED TO THE FUND. IN NO EVENT SHALL MONIES DEPOS-
ITED INTO THE FUND BE TRANSFERRED TO ANY OTHER ACCOUNT. 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 SECTION. 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
SECTION.
3. PURPOSES OF THE FUND. THE PROCEEDS OF THE FUND ESTABLISHED PURSUANT
TO SUBDIVISION TWO OF THIS SECTION SHALL BE UTILIZED FOR THE FOLLOWING
PURPOSES:
(A) THE PROVISION OF NO-INTEREST OR LOW-INTEREST LOANS TO ELIGIBLE
RESIDENTS OF THE TOWN FOR THE PURCHASE OF A FIRST HOME;
(B) THE ACTUAL PRODUCTION OF COMMUNITY HOUSING FOR SALE TO ELIGIBLE
INDIVIDUALS BY THE TOWN;
(C) THE ACTUAL PRODUCTION OF COMMUNITY HOUSING FOR SALE TO ELIGIBLE
INDIVIDUALS IN CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP, WHERE THE
PRIVATE PARTNER AGREES TO COMPLY WITH THE PROFIT GUIDELINES OF THE NEW
YORK STATE AFFORDABLE HOUSING CORPORATION;
(D) THE ACTUAL PRODUCTION AND MAINTENANCE OF RENTAL HOUSING FOR RENT
TO ELIGIBLE INDIVIDUALS EITHER BY THE TOWN, THE TOWN HOUSING AUTHORITY,
OR IN CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP, WHERE THE PRIVATE
PARTNER AGREES TO COMPLY WITH THE PROFIT GUIDELINES OF THE NEW YORK
STATE AFFORDABLE HOUSING CORPORATION;
(E) THE REHABILITATION OF EXISTING BUILDINGS AND STRUCTURES IN THE
TOWN FOR THE PURPOSE OF CONVERSION TO COMMUNITY HOUSING FOR SALE OR
RENTAL TO ELIGIBLE INDIVIDUALS;
(F) THE PROVISION OF HOUSING COUNSELING SERVICES BY NOT-FOR-PROFIT
CORPORATIONS WHO ARE AUTHORIZED BY THE UNITED STATES DEPARTMENT OF HOUS-
ING AND URBAN DEVELOPMENT TO PROVIDE SUCH SERVICES; AND
(G) THE PROVISION OF EDUCATION IMPACT PAYMENTS TO SCHOOL DISTRICTS AS
DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION.
S. 317 4 A. 33
FOR THE PURPOSES OF THIS SUBDIVISION, ELIGIBLE EXPENSES RELATING TO
THE PRODUCTION OF COMMUNITY HOUSING AND THE REHABILITATION OF EXISTING
BUILDINGS AND STRUCTURES UNDER THE FUND SHALL INCLUDE BUT NOT BE LIMITED
TO LAND ACQUISITION, PLANNING, ENGINEERING, CONSTRUCTION COSTS, AND
OTHER HARD AND SOFT COSTS DIRECTLY RELATED TO THE CONSTRUCTION, REHABIL-
ITATION, PURCHASE OR RENTAL OF HOUSING PURSUANT TO THIS SECTION. ALL
REVENUES RECEIVED BY THE TOWN FROM THE SALE OR RENTAL OF COMMUNITY
HOMES, OR THE REPAYMENT OF LOANS SHALL BE DEPOSITED IN THE FUND.
4. ADVISORY BOARD ESTABLISHED. THE TOWN BOARD OF ANY TOWN IN THE
PECONIC BAY REGION WHICH HAS ESTABLISHED A COMMUNITY HOUSING OPPORTUNITY
FUND PURSUANT TO THIS SECTION SHALL CREATE AN ADVISORY BOARD TO REVIEW
AND MAKE RECOMMENDATIONS REGARDING THE TOWN'S COMMUNITY HOUSING PROGRAM.
SUCH BOARD SHALL CONSIST OF NOT LESS THAN SEVEN NOR MORE THAN FIFTEEN
LEGAL RESIDENTS OF THE MUNICIPALITY WHO SHALL SERVE WITHOUT COMPEN-
SATION. NO MEMBER OF THE LOCAL LEGISLATIVE BODY SHALL SERVE ON THE
BOARD. THE BOARD SHALL INCLUDE A REPRESENTATIVE OF: (A) THE BUILDING
INDUSTRY; (B) THE REAL ESTATE INDUSTRY; (C) THE BANKING INDUSTRY; AND
THREE REPRESENTATIVES OF LOCAL HOUSING ADVOCACY OR HUMAN SERVICES ORGAN-
IZATIONS. WHERE A VILLAGE OR VILLAGES, LOCATED WITHIN THE TOWN, HAVE
ELECTED TO PARTICIPATE IN THE FUND, AS PROVIDED IN SUBDIVISION SIX OF
THIS SECTION, THE BOARD SHALL INCLUDE AT LEAST ONE RESIDENT OF A PARTIC-
IPATING VILLAGE OR VILLAGES. WHERE AN INDIAN NATION IS LOCATED WITHIN
THE BOUNDARIES OF A TOWN, THE BOARD SHALL INCLUDE AT LEAST ONE MEMBER
FROM SUCH NATION. THE BOARD SHALL ACT IN AN ADVISORY CAPACITY TO THE
TOWN BOARD.
5. ADOPTION OF HOUSING PLAN. (A) BEFORE A TOWN MAY ESTABLISH THE FUND,
THE TOWN BOARD SHALL FIRST ADOPT A TOWN HOUSING PLAN WHICH ESTABLISHES
AN IMPLEMENTATION PLAN FOR THE PROVISION OF COMMUNITY HOUSING OPPORTU-
NITIES BY THE FUND, AND A LOCAL LAW IMPLEMENTING SAID PLAN. SUCH PLAN
SHALL ADHERE TO THE FOLLOWING SMART GROWTH PRINCIPLES:
(1) PUBLIC INVESTMENT. TO ACCOUNT FOR AND MINIMIZE SOCIAL, ECONOMIC,
AND ENVIRONMENTAL COSTS OF NEW DEVELOPMENT, INCLUDING INFRASTRUCTURE
COSTS SUCH AS TRANSPORTATION, SEWERS, AND WASTEWATER TREATMENT, WATER,
SCHOOLS, RECREATION, AND LOSS OF OPEN SPACE AND AGRICULTURAL LAND;
(2) DEVELOPMENT. TO ENCOURAGE DEVELOPMENT IN AREAS WHERE TRANSPORTA-
TION, WATER, AND SEWAGE INFRASTRUCTURE ARE AVAILABLE OR PRACTICAL;
(3) CONSERVATION. TO PROTECT, PRESERVE, AND ENHANCE THE STATE'S
RESOURCES, INCLUDING AGRICULTURAL LAND, FORESTS, SURFACE WATERS, GROUND-
WATER, RECREATION AND OPEN SPACE, SCENIC AREAS, AND SIGNIFICANT HISTORIC
AND ARCHEOLOGICAL SITES;
(4) COORDINATION. TO PROMOTE COORDINATION OF STATE AND LOCAL GOVERN-
MENT DECISIONS AND COOPERATION AMONG COMMUNITIES TO WORK TOWARD THE MOST
EFFICIENT, PLANNED AND COST-EFFECTIVE DELIVERY OF GOVERNMENT SERVICES
BY, AMONG OTHER MEANS, FACILITATING COOPERATIVE AGREEMENTS AMONG ADJA-
CENT COMMUNITIES, AND TO COORDINATE PLANNING TO ENSURE COMPATIBILITY OF
ONE'S COMMUNITY DEVELOPMENT WITH DEVELOPMENT OF NEIGHBORING COMMUNITIES;
(5) COMMUNITY DESIGN. TO STRENGTHEN COMMUNITIES THROUGH DEVELOPMENT
AND REDEVELOPMENT STRATEGIES THAT INCLUDE INTEGRATION OF ALL INCOME AND
AGE GROUPS, MIXED LAND USES, AND COMPACT DEVELOPMENT, TRADITIONAL NEIGH-
BORHOOD DEVELOPMENT, PLANNED UNIT DEVELOPMENT, OPEN SPACE DISTRICTS,
DOWNTOWN REVITALIZATION, BROWNFIELD REDEVELOPMENT, ENHANCED BEAUTY IN
PUBLIC SPACES, AND DIVERSE AND COMMUNITY HOUSING IN CLOSE PROXIMITY TO
PLACES OF EMPLOYMENT, RECREATION, AND COMMERCIAL DEVELOPMENT;
(6) TRANSPORTATION. TO PROVIDE TRANSPORTATION CHOICES, INCLUDING
INCREASING PUBLIC TRANSIT AND ALTERNATIVE MODES OF TRANSPORTATION, IN
S. 317 5 A. 33
ORDER TO REDUCE AUTOMOBILE DEPENDENCY, TRAFFIC CONGESTION, AND AUTOMO-
BILE POLLUTION;
(7) CONSISTENCY. TO INSURE PREDICTABILITY IN BUILDING AND LAND USE
CODES;
(8) COMMUNITY COLLABORATION. TO PROVIDE FOR AND ENCOURAGE LOCAL
GOVERNMENTS TO DEVELOP, THROUGH A COLLABORATIVE COMMUNITY-BASED EFFORT,
SMART GROWTH PLANS THAT INCLUDE LONG TERM LAND USE AND PERMIT PREDICT-
ABILITY AND COORDINATION, EFFICIENT DECISION MAKING AND PLANNING IMPLE-
MENTATION.
(B) SUCH PLAN MAY INCLUDE THE ESTABLISHMENT OF A MAP OR MAPS THAT
DELINEATE THE HOUSING IMPLEMENTATION RECOMMENDATIONS PROPOSED BY THE
TOWN.
(C) THE PLAN AND THE LOCAL LAW IMPLEMENTING THE PLAN SHALL NOT BE
ADOPTED UNTIL AFTER A PUBLIC HEARING HAS BEEN HELD BY THE TOWN BOARD.
SUCH PLAN SHALL BE UPDATED AT LEAST ONCE EVERY FIVE YEARS. SUCH PLAN AND
LOCAL LAW SHALL BE ADOPTED AT LEAST SIXTY DAYS BEFORE THE MANDATORY
REFERENDUM REQUIRED BY SUBDIVISION SEVEN OF THIS SECTION.
(D) THE TOWN HOUSING PLAN SHALL BE AN ELEMENT OF THE TOWN'S COMPREHEN-
SIVE PLAN.
(E) SUCH HOUSING PLAN SHALL ALSO PROVIDE FOR INCOME AND OTHER ELIGI-
BILITY REQUIREMENTS FOR COMMUNITY HOUSING, INCLUDING ANY ELIGIBILITY
PREFERENCE THAT MAY BE GIVEN BASED UPON RESIDENCY OR OTHER CRITERIA.
SUCH PLAN SHALL ALSO PROVIDE FOR THE LEGAL MECHANISM THAT WILL BE
EMPLOYED TO MAINTAIN THE HOUSING STOCK CREATED PURSUANT TO THIS SECTION
AT COMMUNITY LEVELS. THE RESALE OF COMMUNITY HOUSING TO THE PUBLIC FOR
OCCUPANCY CREATED PURSUANT TO THIS SECTION TO OTHER THAN INCOME ELIGIBLE
HOUSEHOLDS SHALL BE PROHIBITED.
(F) SUCH HOUSING PLAN SHALL ALSO PROVIDE FOR THE EQUITABLE DISTRIB-
UTION OF COMMUNITY HOUSING OPPORTUNITIES AMONG ALL THE HAMLETS AND
COMMUNITIES OF THE TOWN. THE PLAN SHALL INSURE THAT NO HAMLET OR COMMU-
NITY IS SITED FOR AN UNDUE CONCENTRATION OF COMMUNITY HOUSING OPPORTU-
NITIES THAT WOULD SUBSTANTIALLY ALTER THE CHARACTER OF THE HAMLET OR
COMMUNITY. IN DETERMINING EQUITABLE DISTRIBUTION OF COMMUNITY HOUSING
OPPORTUNITIES, EXISTING COMMUNITY HOUSING OPPORTUNITIES IN A HAMLET OR
COMMUNITY SHALL BE CONSIDERED.
6. VILLAGE AND INDIAN NATION PARTICIPATION. (A) THE PARTICIPATION OF
ANY VILLAGE OR INDIAN NATION IN THE COMMUNITY HOUSING OPPORTUNITY
PROGRAM AUTHORIZED BY THIS SECTION SHALL BE AT THE OPTION OF THE VILLAGE
OR INDIAN NATION. IN ORDER TO PARTICIPATE, A VILLAGE OR INDIAN NATION
SHALL PASS A RESOLUTION OPTING INTO THE PROGRAM AND SHALL SUBMIT SAID
RESOLUTION TO THE TOWN BOARD.
(B) WHERE A VILLAGE OR INDIAN NATION OPTS TO PARTICIPATE PURSUANT TO
THIS SUBDIVISION, AN INTERGOVERNMENTAL AGREEMENT SHALL BE EXECUTED
PURSUANT TO ARTICLE FIVE-G OF THE GENERAL MUNICIPAL LAW OR OTHER APPLI-
CABLE LEGAL AUTHORITY, IN ORDER TO ESTABLISH THE RIGHTS AND RESPONSIBIL-
ITIES OF EACH GOVERNMENT REGARDING COMMUNITY HOUSING OPPORTUNITIES.
7. MANDATORY REFERENDUM. THE LOCAL LAW OR LAWS ADOPTING THE HOUSING
PLAN AND ESTABLISHING THE COMMUNITY HOUSING OPPORTUNITY FUND SHALL BE
SUBJECT TO A MANDATORY REFERENDUM. SUCH LOCAL LAW OR LAWS SHALL ONLY
BECOME EFFECTIVE UPON THE ADOPTION OF SAID REFERENDUM BY THE ELECTORS OF
THE TOWN.
S 4. Subdivision 10 of section 64-e of the town law, as amended by
chapter 373 of the laws of 2008, is amended to read as follows:
10. [Rights] EXCEPT AS PROVIDED FOR HEREIN, RIGHTS or interests in
real property acquired with monies from such fund shall not be sold,
leased, exchanged, donated, or otherwise disposed of or used for other
S. 317 6 A. 33
than the purposes permitted by this section without the express authori-
ty of an act of the legislature, which shall provide for the substi-
tution of other lands of equal environmental value and fair market value
and reasonably equivalent usefulness and location to those to be discon-
tinued, sold or disposed of, and such other requirements as shall be
approved by the legislature. Nothing in this section shall preclude a
town, by local law, from establishing additional restrictions to the
alienation of lands acquired pursuant to this section. This subdivision
shall not apply to the sale of development rights by a town acquired
pursuant to this section, where said sale is made by a central bank
created by a town, pursuant to a transfer of development rights program
established by a town pursuant to section two hundred sixty-one-a of
this chapter, provided, however (a) that the lands from which said
development rights were acquired shall remain preserved in perpetuity by
a permanent conservation easement or other instrument that similarly
preserves the community character referenced in subdivision four of this
section, and (b) the proceeds from such sale shall be deposited in the
community preservation fund OR THE COMMUNITY HOUSING OPPORTUNITY FUND
PURSUANT TO SECTION SIXTY-FOUR-K OF THIS ARTICLE.
S 5. Applicability. Nothing shall preclude a town from transferring
development rights acquired after the effective date of chapter 114 of
the laws of 1998 but before the effective date of this section into a
central bank.
S 6. Severability clause. If any provision of this act or application
thereof shall for any reason be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder of the act, but shall be confined in its opera-
tion to the provision thereof directly involved in the controversy in
which the judgment shall have been rendered.
S 7. This act shall take effect immediately.