Southold Town now allows accessory apartments on new structures

Southold Town struck two words from its zoning code in a move officials say could spur more accessory apartments and boost affordable housing on the North Fork.

The change approved April 21 allows accessory apartments to be built in new detached structures on residential property. Previously, town law required accessory apartments be built in “presently existing” structures including garages, barns and storage buildings.

The town board approved the change as part of a broader effort to update zoning laws to encourage accessory dwelling units in a competitive, expensive housing market. 

Southold’s Zoning Board of Appeals, which reviews applications to build accessory apartments, supported the change. Elsewhere on the North Fork, Riverhead's code allows ADUs in detached structures, but applications must be filed with the town's building department.

Leslie Weisman, the board’s chair, said the town removed a roadblock and could allow residents to have tiny homes on their properties.

Weisman cited a recent denial on a property where homeowners sought to build a detached apartment for their son to live in. “We couldn’t say yes, because it was not existing,” Weisman said in an interview.

Adding affordable housing is a key priority in Southold’s 2020 Comprehensive Plan. The need is dire, Weisman said.

“Enrollment in our public school systems on the North Fork [is] dwindling dramatically,” Weisman said, noting that young families cannot afford to live in the region. “We’re going to lose generational vitality if we don’t do something about housing.”

'Intimidating' code

Under town code, detached accessory apartments can be between 220 and 750 square feet and are limited to two bedrooms and one bathroom. They must be rented at affordable rates, either to a family member of the homeowner or someone who qualifies to be on the town’s community housing registry.

Last year, Southold removed a part of the code that required existing accessory structures to have a certificate of occupancy for a minimum of three years before they could be turned into accessory apartments.

Andrea Sullivan, the town’s community development project supervisor, said the goal is to make the process less onerous for homeowners.

“We’ve heard from people trying to build ADUs that the reason they’re hesitant is because the process is complicated,” Sullivan said in an interview. “The code aspect of it is intimidating.”

Caroline Schrank is one homeowner who could benefit from the new law.

She had been seeking to convert a detached garage on her Mattituck property into a legal apartment.

But under Southold Town code, projects that alter more than 50% of a structure’s market value are considered demolition, and until Tuesday, she was prohibited from building an accessory apartment in a new structure.

Now, her plan for a two-bedroom apartment could move forward.

“It’ll help me live here. It’ll make this a sustainable property,” Schrank, 61, said in an interview. “It’ll help with my taxes.”

She said she’s planning to rent the apartment to a local woman and her disabled sister. Schrank plans to use a $109,000 grant from the Long Island Housing Partnership to build the apartment.

But she said she hopes the town moves quickly to implement its own ADU loan program after estimates for construction came in at over $200,000. Southold's program would draw from its Community Housing Fund. 

“I’m at a crossroads because I’ve waited two years and building materials have gone up with all the tariffs, and my bids came in really high,” Schrank said. “There’s this money sitting there.”

Housing fund tapped

Southold is one of four East End towns that established the housing fund, which generates revenue through a 0.5% tax on most real estate transactions. Since the program launched in 2023, Southold has collected $6.7 million, according to data from the office of Assemb. Tommy John Schiavoni (D-Sag Harbor).

Sullivan said priorities for this year include developing guidelines to allow residents to tap the fund for no-interest loans of up to $125,000 to build accessory apartments. One issue that needs to be resolved is how the town would administer loans.

Other proposals would provide subsidies for developers of affordable housing and loans for first-time homebuyers.

But before those programs can launch, she said the town must resolve and update the town code related to housing.

“It would make more sense for the program to roll out after the code changes are implemented. Hopefully we can roll those out as soon as possible,” she said.

Other East End towns are also trying to encourage more accessory apartments to tackle the affordable housing crisis. East Hampton is debating code changes that could make more properties eligible for the units. Riverhead Town recently streamlined its permitting process.