Westhampton Beach condos available for $536,000 through affordable housing application

Long Islanders can purchase a new condo in Westhampton Beach for less than half its price on the open market through a first-come, first-served application process run by Long Island Housing Partnership. 

Condos at the 45-unit The Gables at Westhampton Beach development on Depot Road are listed for about $1.4 million to $1.8 million. 

But the developer, Inlet Real Estate Capital, is offering the seven condos for $535,875 as part of a deal with the village that allowed the company to build additional units on the 8-acre property.

"This is a beautiful community, it’s located in a great spot if you have connections to the East End, and it’s a very affordable price compared to the market," said Jill Rosen-Nikoloff, senior vice president and general counsel at Long Island Housing Partnership, which is handling the application process.

The housing nonprofit is accepting applications for the discounted condos after a housing lottery earlier this year yielded only two eligible purchasers out of 136 applicants. Some applicants hadn’t anticipated the additional expenses that come with ownership, including common charges and insurance costs, said Peter Elkowitz, the nonprofit’s president and CEO.

To qualify, buyers can earn up to 130% of area median income. That translates into $150,050 for an individual, $171,500 for a couple or $192,950 for a family of three. Income limits increase for larger households and are based on federal guidelines that housing costs take up no more than 30% of a family’s income.

The deals come with a caveat — future appreciation on the condos is limited to keep the units affordable in perpetuity. Westhampton Village has the right of first refusal to buy back the condo before it is offered for sale. The buyer may not sell the condo at a profit for at least three years after closing.

After the three years, the owner may sell for their purchase price plus the metropolitan area inflation rate since their purchase. The resale price also can reflect the cost of certain home improvements.

"It’s designed to make sure the house remains affordable," said Elkowitz. "You can’t get a windfall."

Buyers are responsible for $846 a month in common charges to cover landscaping, snow removal and pool maintenance and between $195 to $300 in real estate taxes, depending on the unit.

The units have two bedrooms and 2 1/2 bathrooms with access to amenities including a gym, a pool and a walking trail. Buyers must not have owned a home for the past three years, have at least 3% of the purchase price in a down payment and secure a mortgage. Mortgage counseling through Long Island Housing Partnership and a $50 application fee also are required.

Westhampton Beach Mayor Ralph Urban, a retired teacher, said he hoped the available units would spare some East Enders the hours he spent commuting to his job as a music teacher in Montauk before he retired in 2011.

"One of the reasons I had that commute was because I couldn’t afford a house out in Montauk," he said.

Recruiting public-sector workers, including teachers, police officers and village employees, has been difficult because of home prices in the area, he said.

The median price among 40 condos sold on the South Fork during the third quarter was nearly $1.4 million, according to a recent market report from the brokerage Corcoran, which noted prices were lifted by sales at the new Watermill Crossing in Southampton. 

Meanwhile, the median price for a house in Westhampton Beach was almost $2.4 million during the July to September period.

The Gables, across the street from Westhampton Beach High School, is just south of another significant development, The Beechwood Organization’s Country Pointe Estates. That single-family home community will have 22 houses, with available listings starting at nearly $2.3 million, according to Beechwood’s website. 

Investors had interest in developing the Gables site for more than a decade before Inlet Real Estate Capital acquired the property in 2021, said Ryan Jantzen, founder and principal at Inlet. 

Jantzen said he expected the market-rate units to attract a mix of young professionals and retirees seeking seasonal or summer homes on the East End. 

About 40% of the market-rate condos in The Gables are sold, Jantzen said.

Although the units available through the application process don’t have the same high-end finishes as the multimillion-dollar condos — stainless steel but not SubZero brand refrigerators, for example — Jantzen believes the condos will still provide great value to the buyers selected to purchase for about $536,000. 

"There’s a lot of people who serve the immediate area — teachers, firemen, cops, nurses — that are just priced out of the area," said Jantzen, who grew up in Shoreham and lives in Long Beach. "You want those educated, hardworking people who work in the area to live in the area. That’s the idea behind these units."

Interested buyers with questions are encouraged to email Long Island Housing Partnership at homeowner5@lihp.org before applying.

By Jonathan LaMantia

jonathan.lamantia@newsday.com@jonlamantia

Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.