LBD03159-13-9
A. 4941--B 2
housing crisis for local families. In the Peconic Bay region, more than
40% of all housing units are seasonal.
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 implementation of
the new federal tax bill will only exacerbate this problem by making it
more difficult for first time homebuyers by imposing a $10,000 cap on
the deductibility of state and local taxes and by reducing the mortgage
interest deduction on new mortgages. The Peconic Bay region requires a
balanced housing policy where there exists a variety of housing types
and opportunities across the region's economic spectrum.
It is the public purpose of this legislation to give the towns of the
Peconic Bay region the authority and resources needed to establish a
dedicated fund to provide needed housing opportunities. Specifically,
this legislation would permit each town to establish a community housing
fund to increase housing opportunities in the region. 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.
Said fund would be financed by a combination of state and local funds,
including a 0.5% supplemental real estate transfer tax, which would be
in addition to the existing 2% real estate transfer tax for the Peconic
Bay region community preservation fund.
In addition, the exemption amounts from the total real estate transfer
tax would be increased to $400,000 in the towns of Southampton, East
Hampton and Shelter Island and to $280,000 in the towns of Riverhead and
Southold. This will insure that in the towns of East Hampton, Southamp-
ton, and Shelter Island, the real estate transfer tax will be reduced
from current law for property transfers with a consideration under
$1,000,000. The real estate transfer tax would be reduced from current
law in the towns of Southold and Riverhead for property transfers with a
consideration under $800,000. Finally, the purchase price limit for the
exemption for first time homebuyers in the towns of East Hampton, South-
ampton and Shelter Island would be increased from 120% to 150% of the
purchase price limit defined by the state of New York mortgage agency.
These amendments to the exemptions will reduce any adverse impact from
the transfer tax on the provision of community housing.
§ 2. This act shall be known and may be cited as the "Peconic Bay
region community housing act".
§ 3. The town law is amended by adding a new section 64-k to read as
follows:
§ 64-K. PECONIC BAY REGION COMMUNITY HOUSING 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" MEANS A PRIMARY RESIDENTIAL PROPERTY FOR AN
ELIGIBLE INDIVIDUAL THAT DOES NOT EXCEED ONE HUNDRED FIFTY PERCENT OF
THE PURCHASE PRICE LIMITS ESTABLISHED BY THE STATE OF NEW YORK MORTGAGE
AGENCY LOW INTEREST RATE LOAN PROGRAM IN NON-TARGET CATEGORIES FOR
SUFFOLK COUNTY IN EFFECT ON THE CONTRACT DATE FOR THE SALE OF SUCH PROP-
ERTY.
(C) "BOARD" MEANS THE ADVISORY BOARD CREATED PURSUANT TO SUBDIVISION
SIX OF THIS SECTION.
A. 4941--B 3
(D) "FUND" MEANS THE COMMUNITY HOUSING FUND AUTHORIZED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION.
(E) "FIRST-TIME HOMEBUYER" MEANS AN ELIGIBLE INDIVIDUAL WHO HAS NOT
OWNED A PRIMARY RESIDENTIAL PROPERTY AND IS NOT MARRIED TO A PERSON WHO
HAS OWNED A RESIDENTIAL PROPERTY DURING THE THREE-YEAR PERIOD PRIOR TO
HIS OR HER PURCHASE OF THE PRIMARY RESIDENTIAL PROPERTY, AND WHO DOES
NOT OWN A VACATION OR INVESTMENT HOME.
(F) "PRIMARY RESIDENTIAL PROPERTY" MEANS ANY ONE OR TWO FAMILY HOUSE,
TOWNHOUSE, OR CONDOMINIUM.
(G) "ELIGIBLE INDIVIDUAL" MEANS A HOUSEHOLD WITH AN INCOME THAT DOES
NOT EXCEED ONE HUNDRED PERCENT OF THE INCOME LIMITS AS ESTABLISHED BY
THE STATE OF NEW YORK MORTGAGE AGENCY LOW INTEREST RATE LOAN PROGRAM IN
NON-TARGET CATEGORIES FOR SUFFOLK COUNTY IN EFFECT ON THE CONTRACT DATE
FOR THE SALE OF SUCH PROPERTY.
2. FUND AUTHORIZED. THE TOWN BOARD OF ANY TOWN IN THE PECONIC BAY
REGION IS AUTHORIZED TO ESTABLISH BY LOCAL LAW A COMMUNITY HOUSING 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 REVENUES FROM THE SUPPLEMENTAL REAL ESTATE
TRANSFER TAX AUTHORIZED BY SUBDIVISION TWO OF SECTION FOURTEEN HUNDRED
FORTY-NINE-BB OF THE TAX LAW; (B) ALL PROCEEDS FROM ANY INDEBTEDNESS OR
OBLIGATIONS ISSUED PURSUANT TO THE LOCAL FINANCE LAW FOR COMMUNITY HOUS-
ING OPPORTUNITY PURPOSES AS AUTHORIZED IN SUBDIVISION THREE OF THIS
SECTION; (C) GENERAL FUND BALANCES OR SURPLUSES; (D) ANY PROCEEDS
RECEIVED BY THE LOCAL GOVERNMENT FROM THE SALE OR RENTAL OF COMMUNITY
HOUSING PRODUCED FROM REVENUES OF THE FUND; (E) THE REPAYMENT OF ANY
LOANS ISSUED FROM PROCEEDS OF THE FUND; (F) ANY GIFTS OF INTERESTS IN
LAND OR FUNDS; (G) ANY STATE OR FEDERAL GRANTS RECEIVED BY THE TOWN FOR
PROVIDING AFFORDABLE HOMES.
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 FINANCIAL ASSISTANCE TO FIRST-TIME HOMEBUYERS WHO
ARE RESIDENTS OF THE TOWN FOR THE PURCHASE OF A FIRST HOME. SAID FINAN-
CIAL ASSISTANCE MAY BE IN THE FORM OF GRANTS OR LOANS.
(1) A TOWN MAY PROVIDE FINANCIAL ASSISTANCE TO A FIRST-TIME HOMEBUYER
WHO IS A RESIDENT OF THE TOWN OR WHO IS EMPLOYED IN THE TOWN FOR THE
PURCHASE OF A FIRST HOME. A RESIDENT OF THE TOWN SHALL INCLUDE A PERSON
WHO IS CURRENTLY A RESIDENT OF THE TOWN OR A NON-RESIDENT WHO HAS BEEN A
RESIDENT WITHIN THE PAST FIVE YEARS.
(2) SAID FINANCIAL ASSISTANCE SHALL NOT EXCEED FIFTY PERCENT OF THE
PURCHASE PRICE OF THE HOME.
(3) IF SAID FINANCIAL ASSISTANCE IS IN THE FORM OF A LOAN, SAID LOAN
SHALL BE REPAYABLE TO THE TOWN PURSUANT TO THE TERMS AGREED TO BETWEEN
THE RECIPIENT AND THE TOWN, PROVIDED THAT, AT A MINIMUM, ANY LOAN SHALL
BE FULLY REPAID BY THE RECIPIENT UPON THE RESALE OF THE HOME.
(4) FOR THE PURPOSES OF CALCULATING TOWN TAX LIABILITY FOR SUCH PROP-
ERTY, ONLY, THE DOLLAR AMOUNT OF ANY FINANCIAL ASSISTANCE FOR THE
PURCHASE OF A FIRST HOME MADE BY THE TOWN PURSUANT TO THIS SECTION SHALL
BE SUBTRACTED FROM THE FULL EQUALIZED ASSESSED VALUE OF SUCH PROPERTY.
(5) ALL REVENUES RECEIVED BY THE TOWN FROM THE REPAYMENT OF A LOAN
SHALL BE DEPOSITED IN THE FUND.
(6) A TOWN MAY PROVIDE FINANCIAL ASSISTANCE FOR COMMUNITY HOUSING IN
CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP FOR EMPLOYER ASSISTED
HOUSING.
A. 4941--B 4
(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 AND THE PROVISIONS OF THIS
SECTION;
(D) THE ACTUAL PRODUCTION AND MAINTENANCE OF COMMUNITY HOUSING FOR
RENTAL TO ELIGIBLE INDIVIDUALS EITHER BY THE TOWN OR 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 AND THE PROVISIONS OF THIS
SECTION;
(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; AND
(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.
4. FUND MANAGEMENT. 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. 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 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.
5. ELIGIBLE EXPENSES. FOR THE PURPOSES OF THIS SECTION, ELIGIBLE
EXPENSES RELATING TO THE PRODUCTION OF COMMUNITY HOUSING AND THE REHA-
BILITATION 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, REHABILITATION, 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.
6. ADVISORY BOARD ESTABLISHED. THE TOWN BOARD OF ANY TOWN IN THE
PECONIC BAY REGION WHICH HAS ESTABLISHED A COMMUNITY HOUSING FUND PURSU-
ANT TO THIS SECTION SHALL CREATE AN ADVISORY BOARD TO REVIEW AND MAKE
RECOMMENDATIONS REGARDING THE TOWN'S COMMUNITY HOUSING PLAN REQUIRED BY
SUBDIVISION SEVEN OF THIS SECTION. SUCH BOARD SHALL CONSIST OF NOT LESS
THAN SEVEN NOR MORE THAN FIFTEEN LEGAL RESIDENTS OF THE MUNICIPALITY WHO
SHALL SERVE WITHOUT COMPENSATION. NO MEMBER OF THE LOCAL LEGISLATIVE
BODY SHALL SERVE ON THE BOARD. THE BOARD SHALL INCLUDE A REPRESENTATIVE
OF: (A) THE CONSTRUCTION INDUSTRY; (B) THE REAL ESTATE INDUSTRY; (C) THE
BANKING INDUSTRY; AND THREE REPRESENTATIVES OF LOCAL HOUSING ADVOCACY OR
HUMAN SERVICES ORGANIZATIONS. WHERE A VILLAGE OR VILLAGES, LOCATED WITH-
IN THE TOWN, HAVE ELECTED TO PARTICIPATE IN THE FUND, AS PROVIDED IN
SUBDIVISION SEVEN OF THIS SECTION, THE BOARD SHALL INCLUDE AT LEAST ONE
RESIDENT OF A PARTICIPATING 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.
7. ADOPTION OF HOUSING PLAN. (A) BEFORE A TOWN IN THE PECONIC BAY
REGION MAY ESTABLISH THE FUND, THE TOWN BOARD SHALL FIRST ADOPT A TOWN
HOUSING PLAN WHICH ESTABLISHES AN IMPLEMENTATION PLAN FOR THE PROVISION
A. 4941--B 5
OF COMMUNITY HOUSING OPPORTUNITIES BY THE FUND. SAID PLAN SHALL BE
ADOPTED BY LOCAL LAW. 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
ORDER TO REDUCE AUTOMOBILE DEPENDENCY, TRAFFIC CONGESTION, AND AUTOMO-
BILE POLLUTION;
(7) CONSISTENCY. TO ENSURE PREDICTABILITY IN BUILDING AND LAND USE
CODES; AND
(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) 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 TEN OF THIS SECTION.
(D) THE TOWN HOUSING PLAN SHALL BE AN ELEMENT OF THE TOWN'S COMPREHEN-
SIVE PLAN.
(E) SUCH PLAN SHALL ENSURE THAT ALL COMMUNITY HOUSING CREATED PURSUANT
TO THIS SECTION REMAINS AFFORDABLE. SUBSEQUENT PURCHASERS OF SUCH
COMMUNITY HOUSING SHALL HAVE AT THE TIME OF PURCHASE, PURSUANT TO THE
DEFINITION "ELIGIBLE INDIVIDUAL", AN INCOME THAT DOES NOT EXCEED ONE
HUNDRED PERCENT OF THE INCOME LIMITS AS ESTABLISHED BY THE STATE OF NEW
YORK MORTGAGE AGENCY LOW INTEREST RATE LOAN PROGRAM IN NON-TARGET CATE-
GORIES FOR SUFFOLK COUNTY.
(F) SUCH PLAN SHALL PROVIDE FOR THE EQUITABLE DISTRIBUTION OF COMMUNI-
TY HOUSING OPPORTUNITIES AMONG ALL THE COMMUNITIES OF THE TOWN. THE PLAN
SHALL ENSURE THAT NO COMMUNITY IS SITED FOR AN UNDUE CONCENTRATION OF
COMMUNITY HOUSING OPPORTUNITIES THAT WOULD SUBSTANTIALLY ALTER THE CHAR-
A. 4941--B 6
ACTER OF THE COMMUNITY. IN DETERMINING EQUITABLE DISTRIBUTION OF COMMU-
NITY HOUSING OPPORTUNITIES, EXISTING COMMUNITY HOUSING OPPORTUNITIES IN
A COMMUNITY SHALL BE CONSIDERED.
8. VILLAGE PARTICIPATION. (A) THE PARTICIPATION OF ANY VILLAGE IN THE
COMMUNITY HOUSING PROGRAM AUTHORIZED BY THIS SECTION SHALL BE AT THE
OPTION OF THE VILLAGE. IN ORDER TO PARTICIPATE, A VILLAGE SHALL PASS A
RESOLUTION OPTING INTO THE PROGRAM AND SHALL SUBMIT SAID RESOLUTION TO
THE TOWN BOARD.
(B) WHERE A VILLAGE 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 APPLICABLE LEGAL AUTHORITY,
IN ORDER TO ESTABLISH THE RIGHTS AND RESPONSIBILITIES OF EACH GOVERNMENT
REGARDING COMMUNITY HOUSING OPPORTUNITIES.
9. INTERMUNICIPAL AGREEMENTS. NOTWITHSTANDING ANY PROVISION OF LAW TO
THE CONTRARY, TOWNS IN THE PECONIC BAY REGION MAY ENTER INTO INTERMUNIC-
IPAL AGREEMENTS PURSUANT TO ARTICLE FIVE-G OF THE GENERAL MUNICIPAL LAW
FOR PURPOSES CONSISTENT WITH THIS SECTION.
10. MANDATORY REFERENDUM. THE LOCAL LAW OR LAWS ADOPTING THE HOUSING
PLAN AND ESTABLISHING THE COMMUNITY HOUSING 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.
§ 4. Section 1449-bb of the tax law, as added by chapter 114 of the
laws of 1998, is amended to read as follows:
§ 1449-bb. Imposition of tax. 1. Notwithstanding any other provisions
of law to the contrary, any town in the Peconic Bay region, acting
through its town board, is hereby authorized and empowered to adopt a
local law imposing in such town a tax on each conveyance of real proper-
ty or interest therein where the consideration exceeds five hundred
dollars, at the rate of two percent of the consideration for such
conveyance. Provided, however, any such local law imposing, repealing
or reimposing such tax shall be subject to a mandatory referendum pursu-
ant to section twenty-three of the municipal home rule law. Notwith-
standing the foregoing, prior to adoption of such local law, the town
must establish a community preservation fund pursuant to section sixty-
four-e of the town law. Revenues from such tax shall be deposited in
such fund and may be used solely for the purposes of such fund. Such
local law shall apply to any conveyance occurring on or after the first
day of a month to be designated by such town board, which is not less
than sixty days after the enactment of such local law, but shall not
apply to conveyances made on or after such date pursuant to binding
written contracts entered into prior to such date, provided that the
date of execution of such contract is confirmed by independent evidence
such as the recording of the contract, payment of a deposit or other
facts and circumstances as determined by the treasurer.
2. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY, IN
ADDITION TO THE TAX AUTHORIZED BY SUBDIVISION ONE OF THIS SECTION, ANY
TOWN IN THE PECONIC BAY REGION, ACTING THROUGH ITS TOWN BOARD, IS HEREBY
AUTHORIZED AND EMPOWERED TO ADOPT A LOCAL LAW IMPOSING IN SUCH TOWN A
SUPPLEMENTAL TAX ON EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THEREIN
WHERE THE CONSIDERATION EXCEEDS FIVE HUNDRED DOLLARS, AT THE RATE OF ONE
HALF OF ONE PERCENT OF THE CONSIDERATION FOR SUCH CONVEYANCE. PROVIDED,
HOWEVER, ANY SUCH LOCAL LAW IMPOSING, REPEALING OR RE-IMPOSING SUCH
SUPPLEMENTAL TAX SHALL BE SUBJECT TO A MANDATORY REFERENDUM PURSUANT TO
SECTION TWENTY-THREE OF THE MUNICIPAL HOME RULE LAW. NOTWITHSTANDING THE
FOREGOING, PRIOR TO ADOPTION OF SUCH LOCAL LAW, THE TOWN MUST ESTABLISH
A COMMUNITY HOUSING FUND PURSUANT TO SECTION SIXTY-FOUR-K OF THE TOWN
A. 4941--B 7
LAW. REVENUES FROM SUCH SUPPLEMENTAL TAX SHALL BE DEPOSITED IN SUCH
FUND AND MAY BE USED SOLELY FOR THE PURPOSES OF SUCH FUND. SUCH LOCAL
LAW SHALL APPLY TO ANY CONVEYANCE OCCURRING ON OR AFTER THE FIRST DAY OF
A MONTH TO BE DESIGNATED BY SUCH TOWN BOARD, WHICH IS NOT LESS THAN
SIXTY DAYS AFTER THE ENACTMENT OF SUCH LOCAL LAW, BUT SHALL NOT APPLY TO
CONVEYANCES MADE ON OR AFTER SUCH DATE PURSUANT TO BINDING WRITTEN
CONTRACTS ENTERED INTO PRIOR TO SUCH DATE, PROVIDED THAT THE DATE OF
EXECUTION OF SUCH CONTRACT IS CONFIRMED BY INDEPENDENT EVIDENCE SUCH AS
THE RECORDING OF THE CONTRACT, PAYMENT OF A DEPOSIT OR OTHER FACTS AND
CIRCUMSTANCES AS DETERMINED BY THE TREASURER. ANY TAX IMPOSED PURSUANT
TO THIS SUBDIVISION SHALL BE ADMINISTERED AND COLLECTED IN A LIKE MANNER
AS THE TAX IMPOSED BY SUBDIVISION ONE OF THIS SECTION.
§ 5. Subdivision 3 of section 1449-ee of the tax law, as added by
chapter 114 of the laws of 1998, is amended to read as follows:
3. (a) In the towns of East Hampton, Shelter Island and Southampton,
an exemption of [two] FOUR hundred [fifty] thousand dollars shall be
allowed on the consideration of the conveyance of improved real property
or an interest therein and an exemption of one hundred thousand dollars
shall be allowed on the consideration of the conveyance of unimproved
real property.
(b) In the towns of Riverhead and Southold, an exemption of [one] TWO
hundred [fifty] EIGHTY thousand dollars shall be allowed on the consid-
eration of the conveyance of improved real property or an interest ther-
ein and an exemption of seventy-five thousand dollars shall be allowed
on the consideration of the conveyance of unimproved real property.
(C) THE PROVISIONS OF THIS SUBDIVISION SHALL ONLY APPLY TO CONVEYANCES
FOR RESIDENTIAL PROPERTY WHERE THE CONSIDERATION IS TWO MILLION DOLLARS
OR LESS.
§ 6. Subparagraph 1 of paragraph (a) of subdivision 4 of section
1449-ee of the tax law, as amended by chapter 389 of the laws of 2014,
is amended to read as follows:
(1) in the towns of Southampton, East Hampton and Shelter Island, the
primary residential property is within one hundred [twenty] FIFTY
percent of the purchase price limits defined by the state of New York
mortgage agency low interest rate mortgage program in the non-target one
family categories for Suffolk county in effect on the contract date for
the sale of such property;
§ 7. 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.
§ 8. This act shall take effect immediately; provided, however, that
the amendments to sections 1449-bb and 1449-ee of the tax law, made by
sections four, five, and six of this act shall not affect the repeal of
article 31-D of the tax law and shall be deemed to be repealed there-
with.