§ 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
property.

(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
housing 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
financial 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
property, 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.

(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
housing 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
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, 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
pursuant 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 within 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 expend any funds pursuant to this section, the town board
shall first adopt a town housing plan which establishes an
implementation 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
transportation, 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,
groundwater, recreation and open space, scenic areas, and significant
historic and archeological sites;

(4) Coordination. To promote coordination of state and local
government 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 adjacent 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
neighborhood 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
automobile 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
predictability and coordination, efficient decision making and planning
implementation.

(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
comprehensive 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
categories for Suffolk county.

(f) Such plan shall provide for the equitable distribution of
community 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 housing opportunities, existing community housing
opportunities in a community 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.