Southold weighing zoning change plan to build 36 affordable apartments in Cutchogue

Southold Town is weighing a developer's request to build a first-of-its kind affordable housing complex in Cutchogue that would require a zoning change.

Representatives of Cruz Brothers Construction, which presented their plans at a board meeting on Aug. 15, is seeking a change of zone from low-density residential to affordable housing district for the North Fork Villas project. The developer plans to build 36 rental apartments on vacant property on the north side of Main Road between Depot Lane and Pequash Avenue. 

The housing district would allow for more units to be built on the 3.2-acre property, which is now zoned for one single-family home per acre lot. Earlier this year, the town board repealed a measure that capped development at 24 apartments in affordable housing zones.

Board members at the meeting embraced the concept but said they must weigh the need for housing, community character and viability of the project before approving the zoning change.

Jill Doherty, the liaison to the housing advisory commission, said that the proposal is needed in Southold.

“There’s never a perfect spot for it but this location checks a lot of the boxes,” she said.

“A lack of community and workforce housing is a universal problem on the East End. It does not affect a few; it affects the stability and landscape of a community," said Pat Lutzky, who co-chairs the housing commission.

The board said it will review the plan. Then, the developers can formally apply for the change, followed by a review by the town planning department and a public hearing.

Karen Hoeg, an attorney for the developer, said at the meeting, “We think this is a prime location for this project.” She said the property is within what’s known as a Hamlet Locus, or HALO, used by the town to identify areas for growth in each hamlet.

The apartments would be spread across six two-story buildings, each containing four two-bedroom and two one-bedroom units. Plans also include six ground-floor ADA-compliant apartments, an office building and playground area.

Those plans could evolve based on feedback from the town board and the town’s affordable housing review committee.

“We are exploring some alternative layouts,” including the addition of three-bedroom apartments, Hoeg said. “After meeting with the committee, we understand there’s a big need for that.”

The villas project would be the first affordable housing development for Cruz Brothers, who primarily work on high-end residential projects on the East End, according to their website.

Council member Greg Doroski pressed the developers on how they plan to fund and manage the project. “Construction is only the first hurdle. There’s also the operation,” he said. “This is where the town board has a responsibility to look at the funding.”

Details, including potential rent, were not disclosed at the meeting.

Andy Cruz, reached by phone Thursday, declined to comment further or the project.

Rental rates for affordable housing developments are typically dictated by the federal Department of Housing and Urban Development, which lists fair market rates in Suffolk County at $1,914 and $2,297 for one- and two-bedrooms in 2023.

Supervisor Scott Russell urged the board to consider the community housing plan the town is on the brink of adopting as they review the project. The board plans to hold a public hearing on the plan, which will serve as a road map for spending funds collected from a new 0.5% real estate transfer tax to address the housing crisis. No date has been set for the hearing.

“Right now, I’m looking at this and saying, is it consistent with the community character of Cutchogue,” Russell said.