A pair of companion bills passed in the New York State Assembly and Senate last week would allow the five East End towns to add .5 percent to the existing 2-percent real estate transfer tax to set up a pot of money for affordable housing programs. The Town Community Housing Fund legislation awaits a signature by Gov. Andrew M. Cuomo and would then be subject to a voter referendum.
If successful on both fronts, the legislation would also raise the existing exemption from the transfer tax — from $250,000 up to $400,000 in East Hampton, Southampton, and Shelter Island, and from $150,000 up to $280,000 in Riverhead and Southold.
The Community Housing Fund could, for example, be used to provide financial assistance to first-time homebuyers, build rental units, boost public-private partnerships, rehabilitate existing buildings for housing, or other purposes.
In a statement, Assemblyman Fred W. Thiele Jr. said the lack of affordable housing “has reached crisis proportions.” It increases traffic, affects businesses that have trouble retaining employees, causes a shortage of volunteers among service organizations, and forces out longtime local residents, Mr. Thiele said.
“There is no one solution to this problem,” he said. “However, this legislation will provide towns with a meaningful tool that can make a difference by providing housing opportunities for its residents at a much greater rate than they can with existing resources and programs.”
A representative of Mr. Thiele said Monday it is unclear exactly when Governor Cuomo might receive the legislation for his signature. When he does, the governor will have 10 days to sign or veto it. C.S.