In Southampton Village, officials look to increase workforce housing options

Southampton Village officials are weighing measures to spur new affordable housing for its workforce in one of the most expensive places to live in the country.

Village trustees are considering a proposal to offer density bonuses, slash apartment size requirements and open more land to affordable housing developments intended to sustain the area’s retail, health care and service workers.

A portion of units in these “workforce housing developments” would have rents based on income and be accessible only to households making up to 130% of Long Island’s median income — or $214,370 for a family of four.

They would also be subject to approval by village trustees, who could impose conditions requiring units be rented to people already living or working in the village, as well as active volunteers in its emergency services, according to a copy of the legislation.

Village officials discussed housing affordability with Southampton Town housing officials at a public meeting Friday.

Jay Diesing, a village resident and a member of the town's Community Housing Fund advisory board, said most land in the village has already been developed, leaving few parcels that could accommodate new housing projects.

“We've kind of gutted our community,” Diesing said. “If you look at Southampton Village right now, only 28% of the tax bills get sent to an address in the village. So that tells you that 72% of the people don't really live here, and we can't maintain [that]. We have a sustainability problem.”

Details of the proposal

Under the proposal, a developer could build up to eight housing units, 25% of which must be designated as workforce units. A project composed entirely of workforce units could build up to four more units. Village Mayor Bill Manger said trustees are revising the proposal to require at least half the units to be workforce units.

The legislation also would allow for workforce housing within zoning districts designated for offices. Manger said the culture surrounding remote work and the ability to Zoom into meetings is contributing to those districts being “underutilized.”

It would further permit “live-work” dwelling units — apartments built above first-floor commercial businesses for the owner’s use.

Several ZIP codes in Southampton Town rank among the top 100 in the country for median home prices. That includes the Southampton ZIP code, 11968, where the median home price is nearly $2.2 million. That figure also covers homes in areas near the village; homes within the village itself sell for significantly higher prices, Newsday recently reported.

A chance to work together

Town officials said they want to work with the village to encourage new affordable units there, including offering grants through the town’s Community Housing Fund, which generates its revenue through a half-percent real estate transfer tax.

Diesing said the village should identify properties ripe for workforce housing and purchase them for projects. If the government doesn’t act soon, he warned, developers will turn potential affordable housing sites into luxury condominiums.

“We need to work on our zoning, because we don't need any more luxury housing in Southampton Village. In fact, we need to discourage it,” he said.

Curtis Highsmith, executive director of the Southampton Housing Authority, encouraged the village to change its zoning laws to allow more housing to get projects “across the finish line.”

The village has faced a change in housing needs before, he said, and it is in the midst of another one now.

“We need to be able to find reasonable, affordable units of housing for our workforce, for our medical and emergency personnel,” he said.

Kirby Marcantonio, the owner of Montauk Life Magazine and a developer of workforce housing in East Hampton Town, applauded village officials for recognizing the need for more housing and taking steps to address it.

“Seize the opportunity,” he said, “before we're all left on an island with no rowboats and nobody here to help us out.”