S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6492
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                May 3, 2021
                                ___________
 
 Introduced  by  Sen. PALUMBO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the town law and the tax law, in relation to authorizing
   towns in the Peconic Bay region to establish community  housing  funds
   to be funded by a supplemental real estate transfer tax

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature hereby finds that  an
 adequate supply of housing opportunities for all segments of the Peconic
 Bay community is critical to the future of the Peconic Bay region.
   The adverse impact resulting from the lack of housing opportunities is
 severe.  Local  employers have difficulty hiring and retaining employees
 because of housing costs and  availability.  Local  volunteer  emergency
 services  agencies  experience  difficulty in recruitment and retention.
 Long-time residents are forced to leave the area.  Traffic congestion is
 intensified by the importation of labor from areas  with  lower  housing
 costs.  Finally, the lack of housing opportunities is resulting in resi-
 dents being forced to live in substandard, illegal conditions.
   The  unique demographics and economics in the Peconic Bay region and a
 lack of affordable dwelling units are contributing to this housing shor-
 tage.  The combination of the Peconic Bay region's attractiveness, prox-
 imity to the dense population of the New York metropolitan region and 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 density, and wealth has created
 a  strong local economy for the Peconic Bay region, it has resulted in a
 housing crisis for local families.  The demand for  seasonal  homes  has
 driven  up  housing costs for local families. In the Peconic Bay region,
 more than 40% of all housing units are seasonal.
   The unique demographics and economics in the Peconic Bay  region  that
 have  historically  contributed  to  the housing shortage have only been
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03098-01-1

 S. 6492                             2
 
 exacerbated by the COVID-19 pandemic.  The pandemic has  resulted  in  a
 flight of residents from urban areas such as New York City to more rural
 areas  such  as  the  Peconic  Bay region. The demand for housing in the
 region  is  currently  at  an  all-time  high. This increased demand has
 further driven up housing costs and has reduced the  supply  of  housing
 units  available  for  the  local  workforce.   The increased demand for
 affordable housing opportunities resulting from the pandemic  makes  the
 need for increased community housing more acute.
   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 pandemic has only
 exacerbated  this  problem.  The  Peconic Bay region requires a balanced
 housing policy where there exists a variety of housing types and  oppor-
 tunities 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 ensure that these new housing opportunities
 are enacted in the context of a comprehensive plan.
   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.   The supplemental  real  estate
 transfer shall be enacted by a local law subject to a mandatory referen-
 dum.
   In  addition  to  the  authorization  of  the supplemental real estate
 transfer tax, the exemption amounts from the entire real estate transfer
 tax would be increased to $400,000 in the  towns  of  Southampton,  East
 Hampton and Shelter Island and to $200,000 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  burden  will  be
 reduced  for  property  transfers with a consideration under $1,000,000.
 The real estate transfer tax would be reduced in the towns  of  Southold
 and   Riverhead  for  property  transfers  with  a  consideration  under
 $400,000.
   Finally, the purchase price limit for the  exemption  for  first  time
 homebuyers  in the towns of East Hampton, Southampton and Shelter Island
 would be increased from 120% to 150% of  the  purchase  price  limit  as
 defined  by  the  state of New York mortgage agency. These amendments to
 the exemptions will mitigate 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

 S. 6492                             3

 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.
   (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; AND (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. SUCH  FINAN-
 CIAL ASSISTANCE MAY BE IN THE FORM OF A GRANT OR A LOAN.
   (1)  A  TOWN  MAY  PROVIDE  FINANCIAL ASSISTANCE FOR THE PURCHASE OF A
 FIRST HOME TO A FIRST-TIME HOMEBUYER WHO IS A RESIDENT OF  THE  TOWN  OR
 WHO  IS  EMPLOYED  IN  THE  TOWN. 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) SUCH FINANCIAL ASSISTANCE SHALL NOT EXCEED FIFTY  PERCENT  OF  THE
 PURCHASE PRICE OF THE HOME.
   (3)  IF  SUCH FINANCIAL ASSISTANCE IS IN THE FORM OF A LOAN, SUCH LOAN
 SHALL BE REPAYABLE TO THE TOWN PURSUANT TO THE TERMS AGREED  TO  BETWEEN
 THE RECIPIENT AND THE TOWN, PROVIDED THAT 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.

 S. 6492                             4

   (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.
   (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;
   (F) THE ACQUISITION OF INTERESTS IN REAL PROPERTY IN EXISTING  HOUSING
 UNITS, WHICH WILL RESULT IN THE PRODUCTION OF COMMUNITY HOUSING FOR SALE
 OR RENTAL TO ELIGIBLE INDIVIDUALS; AND
   (G)  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

 S. 6492                             5
 
 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  EXPEND  ANY  FUNDS PURSUANT TO THIS SECTION, THE TOWN BOARD
 SHALL FIRST ADOPT A TOWN HOUSING PLAN WHICH ESTABLISHES  AN  IMPLEMENTA-
 TION  PLAN  FOR  THE PROVISION 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.
   (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 COMMU-
 NITY HOUSING SHALL HAVE AT THE TIME OF PURCHASE, PURSUANT TO  THE  DEFI-
 NITION "ELIGIBLE INDIVIDUAL", AN INCOME THAT DOES NOT EXCEED ONE HUNDRED
 PERCENT  OF  THE  INCOME  LIMITS AS ESTABLISHED BY THE STATE OF NEW YORK

 S. 6492                             6
 
 MORTGAGE AGENCY LOW INTEREST RATE LOAN PROGRAM IN NON-TARGET  CATEGORIES
 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 HAS AN UNDUE CONCENTRATION OF COMMUNITY
 HOUSING OPPORTUNITIES THAT WOULD SUBSTANTIALLY ALTER  THE  CHARACTER  OF
 THE  COMMUNITY. IN DETERMINING EQUITABLE DISTRIBUTION OF COMMUNITY HOUS-
 ING OPPORTUNITIES, EXISTING COMMUNITY HOUSING OPPORTUNITIES IN A  COMMU-
 NITY SHALL BE CONSIDERED.
   8.  VILLAGE PARTICIPATION. (A) THE PARTICIPATION OF ANY VILLAGE IN THE
 PRODUCTION OF COMMUNITY HOUSING 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.
   (C)  REGARDLESS  OF  WHETHER  A  VILLAGE  PARTICIPATES  IN THE PROGRAM
 AUTHORIZED BY THIS SECTION, PROPERTIES IN THE VILLAGE SHALL  BE  SUBJECT
 TO  THE  SUPPLEMENTAL REAL ESTATE TRANSFER TAX AUTHORIZED BY SUBDIVISION
 TWO OF SECTION FOURTEEN HUNDRED FORTY-NINE-BB OF THE TAX LAW.
   § 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

 S. 6492                             7
 
 THE FOREGOING, PRIOR TO ADOPTION OF SUCH LOCAL LAW, THE TOWN MUST ESTAB-
 LISH A COMMUNITY HOUSING FUND PURSUANT TO SECTION  SIXTY-FOUR-K  OF  THE
 TOWN 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] thousand dollars shall be allowed on  the  consideration
 of  the  conveyance of improved real property or an interest therein and
 an exemption of seventy-five thousand dollars shall be  allowed  on  the
 consideration of the conveyance of unimproved real property.
   (C)  THE EXEMPTION GRANTED PURSUANT TO THE PROVISIONS OF THIS SUBDIVI-
 SION 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 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
 such sections and shall be deemed repealed therewith.