Amendment to Chapter 34, Housing Fund
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN, WHEREAS there has been presented to the Town Board of the Town of Southold, Suffolk County, New York, on the 23rd day of October, 2018, a Local Law entitled “A Local Law in relation to an Amendment to Chapter 34, Housing Fund” so now therefor be it
RESOLVED that the Town Board of the Town of Southold will hold a public hearing on the aforesaid Local Law at Southold Town Hall, 53095 Main Road, Southold, New York, on the 20th day of November, 2018 at 4:31 p.m. at which time all interested persons will be given an opportunity to be heard.
The proposed Local Law entitled, “A Local Law in relation to an Amendment to Chapter 34, Housing Fund” reads as follows:
LOCAL LAW NO. 2018
A Local Law entitled, “A Local Law in relation to an Amendment to Chapter 34, Housing Fund”.
BE IT ENACTED by the Town Board of the Town of Southold as follows:
§ 34-1 Purpose.
The Town of Southold Housing Fund will provide the Town with a mechanism to obtain funding and create programs that will increase housing opportunities for families and individuals
who are residents of the Town of Southold and/or employed in the Town of Southold who cannot procure affordable housing within the Town.
§ 34-2 Findings.
A. The lack of affordable housing creates many adverse effects for the Town. Regional employers grapple with the task of hiring and retaining employees due to the limited availability of affordable housing. Recruiting and retaining essential personnel (police officers, fire fighters, teachers, nurses, etc.) has become increasingly a challenge due to the lack of affordable housing. Volunteer emergency services are also impacted by the lack of affordable housing, prompting the possible necessity of replacing volunteer services with paid employees. While the Town has benefited from increased tourism and second homeownership, it must also sustain a population who can afford to live and work in Town.
B. To address this housing shortage, the Town of Southold must create a myriad of housing initiatives that lead to the creation of affordable housing
that reinvest in the lives of residents who live and/or work in the Town. The talented and vibrant energy that was and is invested in community land preservation must be replicated to create affordable housing for a sizable number of individuals and families residents who lack the financial means to rent and/or purchase housing within the Town. C. The priority population for community housing will be as follows: (1) Income eligible individuals/families who live and work in the Town of Southold who provide volunteer emergency/life saving services for residents of the Town. (2) Income eligible individuals/families who live and work in the Town of Southold. (3) Income eligible individuals/families who live in the Town of Southold. (4) Income eligible individuals/families who work in the Town of Southold. (5) Income eligible individuals/families who previously lived in the Town and wish to return.
D. Efforts in the past to create affordable housing have failed in their ability to keep the housing stock affordable upon resale. Therefore, to promote perpetual affordability within the Town, all recipients of said housing will be legally bound to sell their properties to the Town's Housing Fund. Resale price formulas for homes purchased from the Fund will be as follows: Homes sold after purchase will realize profits that are the equivalent percentage of the Consumer Price Index (CPI) as compiled by the United States Department of Labor. The percentage will be calculated from the date of sale from the Fund to the date of resale to the Fund. In addition, the Fund will compensate the seller for major capital improvements that are improved in advance by the Housing Advisory Commission. Depreciation may be applied to capital improvements.
§ 34-3 Definitions.
As used in this chapter, the following words and terms shall have the following meanings:
The Town of Southold Housing Fund authorized pursuant to this chapter.
Housing for households whose incomes are not sufficient, pursuant to banking industry standards, to induce private lenders to finance the costs of acquisition of a home with a value at or less than median value as determined by the Town's assessment rolls, without benefit of subsidies or special financing programs from the Town in the case of owner-occupied housing, or in the case of rental housing, as housing for households whose income is insufficient to pay the monthly costs for such housing and maintain such costs within the required percentages of the household's income based upon banking industry standards.
INCOME ELIGIBLE INDIVIDUALS/FAMILIES
Those individuals/families whose incomes are below the designated percentage of the HUD median income for the County of Suffolk, as determined by the Southold Town Board. In addition, individuals/families seeking grant assistance and loans from other public funding sources may be limited to household incomes less than the HUD
B median income for the County of Suffolk.
The Town of Southold.
§ 34-5 Purposes of Fund.
A. The proceeds of the Fund established pursuant to § 34-4 shall be utilized in accordance with law for the following purposes:
(1) The provision of no-interest or low-interest loans to income eligible individuals or families
residents who work and/or live in the Town for the purchase of a first home;
(2) The actual production of community housing for sale and resale to income-eligible individuals or families
residents who work and/or live in the Town;
(3) The actual production of community housing for sale to income-eligible individuals or families
residents who work and/or live in the Town in conjunction with other public/private partnerships such as the North Fork Housing Alliance and the Community Land Trust of Southold who agree with the stated priority population and income eligibility guidelines;
(4) The actual production and maintenance of rental housing for rent to income-eligible individuals or families
residents who work and/or live in the Town or in conjunction with public/private partnerships who agree with the stated profit guidelines;
(5) The provision of no-interest or low-interest loans to developers for the production of community housing for sale to income eligible individuals or families for the purchase of a first home or for rent to income eligible residents.
5) The rehabilitation of existing buildings and structures in the Town for the purpose of conversion to community housing for sale or rental to income-eligible individuals or families residents who work and/or live in the Town;
6) The provision of housing counseling services by not-for-profit corporations that are authorized by the U.S. Department of Housing and Urban Development to provide said services;
7) The Fund will ensure the perpetual affordability of housing through determining resale prices of any home purchased through the Fund. This will be accomplished through the following: The Town of Southold reserves the right to require that all housing units purchased through the Fund remain affordable in perpetuity. All properties purchased through the Fund must be sold back to the Fund for resale to income-eligible individuals/families who meet the qualifications of defined priority populations. After purchase, homes may be resold to the Fund to potentially realize a profit. Sale prices will be calculated at the original purchase price (base price) and shall be adjusted by a percentage which is the same as the percentage by which the Consumer Price Index (CPI) increased between the date that the buyer took title to the property and the date that a letter of intent is submitted to the Fund to resell the property. Costs for capital improvements approved by the Fund's regulations may also be compensated. Capital improvements are additions that provide value to the property above and beyond repairs to maintain the property in good condition. The Housing Advisory Commission must approve in advance all capital improvements. The Commission must be given information regarding the scope of work and estimate of capital costs. If capital improvements are approved, the Commission will determine if the capital improvement may be recouped in the event of resale.
8) The Housing Fund will strive to build housing and sell housing that reflects the diverse needs of those seeking affordable housing that includes household income, bedroom size, etc.
B. For the purposes of this chapter, eligible expenses relating to the production of community housing and the rehabilitation of existing housing stock and structures under the Fund shall include, but not be limited to, land acquisition, planning, engineering, construction costs and other hard and soft costs associated with construction, rehabilitation, purchase or rental of housing pursuant to this section, provided that these costs do not exceed 15% of the projected project costs. Litigation expenses may not be covered by this Fund. All revenues received by the Town from the sale or rental of community homes or the repayment of loans shall be deposited in this Fund.
If any clause, sentence, paragraph, section, or part of this Local Law shall be adjudged by any court of competent jurisdiction to be invalid, the judgment shall not affect the validity of this law as a whole or any part thereof other than the part so decided to be unconstitutional or invalid.
IV. EFFECTIVE DATE
This Local Law shall take effect immediately upon filing with the Secretary of State as provided by law.
Dated: October 23, 2018 BY THE ORDER OF THE
SOUTHOLD TOWN BOARD
Elizabeth A. Neville
Southold Town Clerk