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A.D.U. Loans Spur Homeowners’ Interest

Thu, 09/03/2026 - 10:49

The East Hampton Town Board is expected to pass a new law this evening changing the allocation of accessory dwelling units across the town from 40 per school district to a number tied to each hamlet’s buildable lots. The plan found unanimous support when the board met on Tuesday.

Homeowners townwide have long had the option to build A.D.U.s on their properties, but the town board had hoped for more residents to add affordable housing. Recent code changes have finally led to demand. 

“The real impetus for this, we had a recent surge in A.D.U. applications,” said Councilman Ian Calder-Piedmonte. “Part of that is that we instituted a program to help give $100,000 loans. It’s a mark of its success that we have this much interest.” 

In June, the board passed the pilot program legislation that created the interest-free loans (no monthly payments) that are repaid when a property is sold. They are secured by a lien in favor of the housing fund. The application window closed Aug. 21.

The board set aside $1 million for 10 loans, and received 23 applications. A lottery will decide which 10 of the 23 receive the loans.

“Depending on how that lottery comes out, there’s the potential for the East Hampton School District to go over 40,” said Mr. Calder-Piedmonte. “We’re getting close to that cap, and we need to decide whether it’s appropriate to raise it.”

While the town would require a code change to increase the overall limit of A.D.U.s past 200, within that limit they can, by resolution only, shift how many are allowed in each school district.

The new proposed limits are: 23 A.D.U.s in Amagansett, 76 in East Hampton, 32 in Montauk, 13 in Wainscott, and 56 in Springs.

“This tracks pretty closely with where we have seen A.D.U. applications come through,” said the councilman.

“I’m delighted to see the success of the A.D.U. program,” said Councilman Tom Flight, “but I also think we should be open to increasing the 200 cap within the town.”

It wasn’t all breezy and easy. During the public portion of Tuesday’s meeting, two residents raised concerns about A.D.U.s.

“I’m not here to oppose affordable housing,” said Rose Genovese, an East Hampton resident. “I’m here because I believe our A.D.U. regulations and approval process may have evolved to a point where the reality on the ground is different from what was intended.”

A detached two-story structure, 22 feet high, is being built on a 20,000-square-foot lot next door to her, she told the board. “From my backyard, it looms over my property and has dramatically changed the sense of privacy and openness that existed before.”

“Screening discussions make sense,” said Councilman Flight later in the meeting. “Perhaps detached A.D.U.s, second stories, proximities to boundaries, we need to have another look at that potentially.”

“Not to discount the concerns of the neighbor that came in today — I want to reach out to that person specifically,” said Councilwoman Cate Rogers — “but clearly the ability to stay in the town as you age or to have a place for your family to stay in the town is a wonderful opportunity, and I’m all for changing it as proposed.”

“You have always put the limitations on school districts because of the impact upon those school districts,” said David Buda, who lives in Springs. “If you allow up to 76 to be built in East Hampton and 56 in the Springs, you are going against a fundamental principle of the allowance of A.D.U.s.”

“Not every A.D.U. means another family,” countered Councilman David Lys, a point that was supported by Mr. Flight, who is the board’s liaison to the A.D.U. committee.

“From the A.D.U. analysis we’ve done, there is a minimal impact to the school districts,” said Mr. Flight. “It’s not families who are using A.D.U.s, it’s more typically older couples without kids.”

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