During a meeting on Tuesday, March 25, the Southampton Town Board unanimously approved the use of Community Housing Funds (CHF) — a fund created by a tax on real estate transfers and approved in 2022 — to build more affordable housing.
The funding, totaling out at just above $3.4 million, will support three projects from the Town of Southampton Housing Authority (TSHA) that will create 14 new single-family homes which will remain affordable “in perpetuity.”
The largest of the approved projects will create nine single-family, 1,200-square-foot homes that will be available to purchase by first-time home buyers. TSHA requested $1.5 million in CHF assistance to help with the land acquisition and closing costs to purchase the 3.3-acre property at 90 North Sea-Mecox Road in Southampton’s North Sea area.
According to a recent public hearing on the proposal, each of the nine homes will have three bedrooms, two full bathrooms, and a one-car garage.
“To ensure accessibility and affordability, the homes will be sold through a lottery exclusively for first-time homebuyers with incomes not exceeding 80% of the Area Median Income,” according to Curtis Highsmith, the executive director of the Southampton Town Housing Authority. “The land will remain under the ownership of the Town of Southampton Housing Authority, and a homeowners’ association or cooperative association will be established to manage and oversee the property. The governing documents of the association will incorporate resale provisions to maintain the project’s affordability in perpetuity. Additionally, each home will adhere to the Americans with Disabilities Act (ADA) to accommodate residents with mobility limitations.”
TSHA will also receive another $1.75 million in CHF assistance to help with the land acquisition and closing costs of 205 North Sea-Mecox Road in North Sea. The housing authority will develop four single-family, ranch-style, 1,200-square-foot residences on a two-acre abandoned site. The three-bedroom, two-bath houses, also with one-car garages, will also be available to first-time home buyers making no more than 80% of the AMI. The anticipated price for each unit is expected to be $380,000.
“The TSHA’s development plan for this project is closely aligned with the development of 90 North Sea Mecox,” Highsmith says. The land will also remain under the ownership of the TSHA, and a homeowners’ association or cooperative association will be established.
Lastly, the board approved $200,000 of CHF assistance to develop the property at 140 Maple Avenue in Flanders. TSHA has received zoning approval to build a three-bedroom, two-bath rental home with a two-car garage and a one-bedroom apartment above the garage, available to rent separately.
During Southampton’s March 11 public hearing on these projects, Kara Bak, the director of Housing and Community Development, introduced and explained each housing proposal. “Although this is just a drop in the bucket compared to the overall demand,” Bak said, “it demonstrates that the newly established Community Housing Fund is fulfilling its purpose to expand access to affordable homes.”
Applicants who are interested in applying for these homes must enter into a lottery. Further information regarding the start of construction and the expected timeline of when the homes will be ready for occupancy are not yet available.
Housing for Those 62 and Older
The housing authority has also entered into a contract to purchase the Easterner Motel in Shinnecock Hills for $2.7 million, with plans to redevelop it for senior citizens. The Town of Southampton approved using the Community Housing Fund to finance the acquisition of 645 East Montauk Highway on March 11.
The motel is made up of a collection of cottages on 1.9 acres with seven studio units, one one-bedroom unit and a pair of two-bedroom cottages, along with a pool. The pre-existing, non-conforming property was most recently on the market for $2.995 million.
“The proposed development involves demolishing the existing structures, upgrading the septic system, and constructing 10 600-square-foot, one-bedroom, project-based housing units specifically designed for seniors aged 62 and above,” Highsmith explains. “The units will be constructed using modular units and will adhere to all American with Disabilities Act (ADA) standards.”
However, zoning regulations prohibit the development of the property, so a zoning change has been made to the Town of Southampton’s Planning Board.
