East Hampton considers OK of funds for affordable housing plans

East Hampton Town officials will consider approving about $3.7 million in grants and a loan to a variety of affordable housing initiatives.

The funding would be the first large-scale use of a new fund designed to boost affordable housing. The lack of it is a regional problem that has become particularly acute across the East End.

In 2022, voters approved the creation of the East Hampton Community Housing Fund, which generates money through a 0.5% tax on most real estate transactions. Since the fund’s adoption, the town began developing programs for spending money that started flowing into the fund in April 2023.

Officials said the fund has generated about $10 million as of Dec. 1. Councilman Ian Calder-Piedmonte said the money generated through the fund is going toward "one of the most important needs of our town."

The applications under review now are part of a program to award grants or loans to individuals, developers, nonprofits or municipalities such as local villages. The town’s community housing advisory board reviewed seven applications it received between June and August and has recommended the board approve funding for five, ranging from a $338,000 loan to $1.5 million grant.

Eric Schantz, the town’s housing director, provided an overview of each request to the town board in early December. Each application requires a public hearing, which the board held on Dec. 19. Supervisor Kathee Burke-Gonzalez said the board plans to discuss each application again at its meeting Tuesday so “the community can hear the town board deliberate on the requests.”

As part of the new housing fund, the town has also implemented a separate down payment assistance pilot program that offers qualified homeowners $30,000.

Andrew Garvey, who chairs the town’s community housing advisory board, said during a presentation last month the money available in the fund is a “scarce resource” compared to the overall need for affordable housing. He said using money for “high-impact projects” is key.

He said prioritizing requests for loans versus grants will also allow money to be recycled through the fund for future projects.

The five applications under consideration are:

The Green at Gardiner’s Point

The East Hampton Housing Authority in conjunction with Georgica Green Ventures recently completed construction of a 50-unit rental development in East Hampton called The Green at Gardiner’s Point.

The developers of the $35.4 million project are seeking $1 million from the housing fund to cover a funding gap due to rising interest rates, according to the town.

It was the only project that received any feedback during the public hearings. Resident David Buda, a frequent commenter at board meetings, questioned the need to support a project that is largely completed.

"Someone needs to explain what would happen if this grant is not granted," he said.

Katy Casey, executive director of the East Hampton Housing Authority, said while the construction is completed and tenants are moving in, "the project is not done until conversion to permanent financing."

The housing advisory board noted the "post-construction" grant is unique and the town board "may want to consider policies regarding such requests." 

114 Middle Income Workforce Housing

The East Hampton Housing Authority requested $7.5 million over three years toward a planned 50-unit affordable housing development in Wainscott for working professionals. The advisory board supported a grant of $1.5 million for 2024 and said the applicant should reapply for additional funding in future years.

Last summer the town transferred two vacant wooded properties — spanning 6.5 acres — to the housing authority. The authority will partner with a developer to build and manage the new complex, which will be south of Route 114.

The Cottages

The East Hampton Housing Authority also requested a $500,000 grant for its nine-unit facility known as the Cottages as it tries to purchase the site from the Sag Harbor Community Housing Trust. The housing authority plans to connect the site to public water and upgrade electrical service among other improvements, according to the presentation.

Suffolk County may match funds provided, according to the town.

Whalebone Apartments

The operators of a 46-unit affordable rental complex in East Hampton, for low- to moderate-income households, is seeking a $345,000 grant to partially cover improvement projects. Some of the work would include installing electric units to replace fossil-fuel-burning equipment and adding solar panels, as well as upgrades to kitchens, bathrooms and flooring.

The total cost is estimated at $4.1 million and the money sought from the housing fund would “partially cover an estimated $750,000 in soft costs” over the next year, according to the presentation.

Windmill

The owners and developers of a 40-unit rental complex for senior citizens are seeking a $338,000 loan for planning and development costs for adding 20 new 600-square-foot units. The total cost of the project is estimated at $6.3 million.

The current development has been in operation since 1987.

The loan would be paid back “upon full project financing," according to the presentation.

By Joe Werkmeister

joe.werkmeister@newsday.com

Joe Werkmeister covers the towns of Southampton, East Hampton and Shelter Island. He is a graduate of St. Bonaventure University and previously worked as the editor of two North Fork community newspapers.

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