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Employer-Sponsored Housing Back to Drawing Board

Thu, 05/21/2026 - 11:23
The East Hampton Town Board discussed the legislation, and comments made at a recent public hearing on it, on Tuesday.
Christopher Gangemi

Following a May 7 public hearing on a proposed code change that would allow “rent restricted employer-sponsored housing developments” in East Hampton, the town board ended a long post-hearing discussion on Tuesday with changes to the legislation.

The changes are enough that the law will have to go through another round of public hearings, and then another post-hearing discussion, before it is ready for a vote.

Councilman Ian Calder-Piedmonte said he would make the changes, including the addition of a fee, paid to the town, when a new tenant moves in to the condominium development. He will also draft a requirement that the developer notify the town of any changes made to the offering plan.

At present, the legislation would allow lease terms as short as six months. Mr. Calder-Piedmonte told the board he would prefer a one-year lease. “There’s a lot of concern about it being a revolving door,” he said.

He also requested stronger language compelling the complex’s management company to verify a tenant’s income.

The planning board has already signaled its support for the law in a March 26 memo from its chairman, Ed Krug. Planning board members made some suggestions — for example, to allow people making more than 130 percent of the Area Median Income to become tenants.

“The board members noted that there is also a dearth of housing opportunities for households making more than 130% A.M.I.,” Mr. Krug wrote, “and that this use, which would not consist of “affordable housing units” as defined, could have a higher income cap (e.g. 160% A.M.I.) which would fill a need gap in available housing.”

That suggestion did not have the support of a majority of the town board, with Councilman Calder-Piedmonte, Councilman David Lys, and Councilwoman Cate Rogers all supporting the 130-percent cap.

Councilman Tom Flight suggested moving the cap to 150 percent for essential workers. Supervisor Kathee Burke-Gonzalez was open to a higher cap as well.

The planning board also suggested the use could even be allowed on lots smaller than the proposed three acres.

“I would like to see a project delivered and see how it operates before we move to smaller lots,” said Mr. Flight.

It is not clear when the legislation will be discussed again. “This will take a bit of work,” said Mr. Calder-Piedmonte.                                     

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