With a unanimous vote on Tuesday, the East Hampton Town Board more than doubled the money available to the accessory dwelling unit construction assistance program, from $1 million to $2.3 million.
The money comes from the community housing fund, which was born in 2023 and grows via a .5-percent transfer tax on real estate transactions. It has raised $32 million to date. A.D.U.s built with the help of town loans must be affordable.
The A.D.U. funding pilot program was only created this summer. With the original $1 million set aside, the town board hoped to attract 10 applicants, to whom it would provide $100,000 in the form of no-interest, deferred payment loans.
Instead, the town received 23 applications.
The surprise demand necessitated a second code change, the subject of a public hearing last Thursday night, and a subsequent vote on Tuesday that allows the board to shift the allocation of where A.D.U.s can be built within the town.
“The right balance is to allow us to reallocate by resolution but require a public hearing before increasing the total number,” said Councilman Ian Calder-Piedmonte, who added that he was open to increasing the 200 A.D.U. cap in the future.
The limit on A.D.U.s was capped at 40 in each hamlet, the thought being that doing so would distribute development and lessen the impact on any single school district. While the total number of A.D.U.s townwide is still capped at 200, the town board now proposes the following breakdown: 76 in East Hampton, 56 in Springs, 32 in Montauk, 23 in Amagansett, and 13 in Wainscott.
“The one piece that just doesn’t sit well with me is decreasing the limit in some of the hamlets,” said Councilman Tom Flight. Still, he voted for the reallocation.
“I want to see allocation go where the need is,” said Councilman David Lys.
Last Thursday night, one member of the public spoke for the change and one against.
Michael Forst, owner of Forst Construction, said he is for additional A.D.U.s, hoped they would hit the cap everywhere, and that he did not believe a cap was even needed. “Everyone who wants to have an A.D.U. or help the town’s affordable housing crisis should be allowed,” he said. “I have an A.D.U., and it’s been great. There’s been no impact to my neighborhood that I’m aware of. I’m not even sure that anyone knows that I actually have the A.D.U. on my property.”
However, David Buda said the proposal is “really wrongheaded.” He said the original intent was to encourage a townwide distribution of A.D.U.s. Allowing more in some areas and fewer in others is an abandonment of that goal, he said. “I think you should have left the things the way they were.”
Along with the added funding, the board agreed to the allocation on Tuesday.
The funding increase itself was the subject of a second hearing last Thursday night, and again, Mr. Forst and Mr. Buda took to the podium to offer their opinions. Mr. Forst again offered full-throated support of anything that could help with the construction of A.D.U.s.
Mr. Buda took less issue with the money and more with who might benefit. “I don’t really see that eligible tenants who are family members of the property owner and spouse, I really don’t understand how the town should be giving interest-free loans to people who are building accessory dwelling units for the benefit of their own family members.”
Councilman Calder-Piedmonte addressed his comment on Tuesday ahead of the vote.
“I just want to point out the community housing law requires us to follow income standards and rent restrictions,” he said. “So those are in place. The only thing it allows for is if somebody’s family has not been able to stay here, they could come back and live as long as they income-qualify and pay rent. This is not some, you know, nepotism carve out for someone’s family.”
Last Thursday night’s meeting also saw the first awards of the loans to residents announced. Joseph and Katherine Izzo received a $100,000 loan, as did Donna DiPaolo.
