Southampton Town has announced that it is accepting applications from people living or working in town who are interested in buying a house or building an accessory apartment onto their existing home, “part of a broader strategy to address housing affordability,” the town said in a release.
Two new programs have been established through the year-old Community Housing Fund, which draws its revenue from a half-percent transfer tax on most real estate purchases across the town and its hamlets and villages. Voters approved the creation of this tax in 2022.
In the First Time Homebuyer Down Payment Assistance Program, people living or working here can apply for a loan for direct assistance of up to 3 percent of a house’s purchase price at zero-percent interest. This, the town said, will help “alleviate the financial burden that often prevents first-time buyers from entering the housing market” — the down payment.
The town has allotted $1.25 million to this program, which is open to families with incomes up to $184,680 for up to two people and $215,460 for three or more people. Houses cannot be priced higher than 150 percent of the affordability threshold established by the State of New York Mortgage Agency, or SONYMA, which is $1,665,600. The house must be the family’s primary residence. The zero-percent loan would be repaid upon the selling or refinancing of the house. It can be combined with SONYMA loans, which provide up to $15,000 in down-payment assistance.
The goal is to help Southampton Town become “an inclusive and welcoming community for all,” the release said. “The town worked to develop this program ensuring it meets the needs of local residents and employees as the cost of housing continues to rise.”
The second initiative, the Accessory Dwelling Unit Program, offers no-interest construction loans to owners of existing homes who want to build an apartment onto their house for a member of the town’s work force. The town has also allotted $1.25 million to this program, which is not only expected to create additional units of affordable housing, but also to help residents generate extra income to offset the rising cost of living here. The zero-percent-interest construction loans offer up to $125,000, span 20 years, and must begin to be paid off in the second year of the term.
To be eligible to live in a unit built this way, a tenant’s income must be no greater than 130 percent of the adjusted mean income according to regional housing and urban development guidelines. The rent they pay cannot exceed the affordability guidelines set by Southampton Town.
“The town board was unanimous in its support of the two new housing assistance programs, and we are committed to allocating additional C.H.F. funds to create work-force housing opportunities for our community,” Supervisor Maria Moore said in a statement. “We’re putting words into action, with thanks to our residents for their support.”
Kara Bak, director of housing and community development for the town, said she is “excited to see the positive impact these initiatives will have on our community.” She can be reached with questions in the office at 631-702-1745 or by email at [email protected]. Program applications are available on the town website.
