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1. What is the Peconic Bay Region Community Housing Act?

The Peconic Bay Region Community Housing Act allows each of the five East End towns to create a dedicated Community Housing Fund (CHF) to assist with affordable housing initiatives.

2. How would the Community Housing Fund be financed?

• The primary source of funding would be revenues derived from a 0.5% real estate transfer fee paid by the purchaser – not the seller - similar to the current Community Preservation Fund transfer fee.
• The Fund is not financed from property taxes.
• Any funding provided would be repaid to the Fund when the property is sold.

3. How can the money be used to create Community Housing?

The Fund can be used for community housing in various ways including:

• First-time homebuyer down payment assistance.
• Shared equity program.
• Employer housing for seasonal and year-round employees.
• The acquisition of existing units for Community Housing.
• The creation and maintenance of community housing through public/private partnerships.
• Housing counseling services.
• For existing homeowners to create affordable accessory affordable apartments in their home.
• The purchase and rehabilitation of vacant, dilapidated or zombie homes for first-time homebuyers.

4. What is Community Housing?

Community Housing is considered a house, townhouse or condominium located anywhere in the Town with a current purchase price of $1,209,885* or less.

*150% of purchase price limit established by SONYMA’s low interest rate loan program.

5. Who would be eligible to purchase Community Housing?

Anyone who lives or works in the Town of Southampton and is a first-time homebuyer 

The individual must be a first-time homebuyer with current income limits of:

• $174,360 – 1-2 person household
• $203,420 – 3+ person household

*100% of purchase price limit established by SONYMA’s low interest rate loan program.

6. Are there exemptions from paying the real estate transfer fee?

The exemption for the proposed Community Preservation Fund transfer fee will increase from $250,000 to $400,000 for properties of $2 million or less this will result in a decrease in the overall transfer fees paid by homebuyers purchasing a home of $1 million or less (see the chart under #11 below).

All first time homebuyers are exempt from paying the transfer fee.

7. How can financial assistance be provided to first-time homebuyers?

• Down payment assistance of up to 50% of the purchase price of a home may be available to first-time homebuyers who live or work in the Town.
• ">Shared equity programs in the form of a loan.
• The loan shall be fully repaid to the Fund upon the resale of the home.

8. Who decides what the Fund is used for?

An Advisory Board, consisting of 7-15 Town residents, including representatives from banking, real estate and construction industries and local housing advocacy or human service organizations will be appointed by the Town Board to review and make recommendations for use of the funds based on the Community Housing Plan.

9. How would the Community Housing be kept affordable?

All community housing created by the Fund shall remain affordable for future generations by the placement of legally binding restrictions.

10. How can the Community Housing Fund be created?

The creation of this Fund would be enacted by a local law following the voters’ approval in a Town-wide mandatory referendum that will appear on the November 8th 2022 ballot.

11. Real estate transfer fee amounts existing vs. proposed

Real estate transfer fee amounts existing vs. proposed

The exemption for the proposed Community Preservation Fund transfer fee will increase from $250,000 to $400,000 for properties of $2 million or less. Therefore, for those properties with a purchase price of under $1 million the transfer fee would be reduced.

PURCHASE PRICE EXISTING CPF PROPOSED CPF +0.5%       600,000 7,000 5,000 700,000 9,000 7,500 800,000 11,000 10,000 900,000 13,000 12,500 1M 15,000 15,000 1.5M 25,000 27,500 2M 35,000 50,000 4M 75,000 100,000 5M 95,000 125,000 10M 195,000 250,000

Note: the proposed exemption for the Community Preservation Fund transfer fee will increase from $250,000 to $400,000 for properties of $2 million or less.

Therefore, for those properties under $1 million the transfer fee would actually be reduced.