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East Hampton advances ADU loan pilot and awaits HCR decision on 16 deeply affordable homes
Summary
Town officials outlined housing work including ADU code changes, a proposed $100,000 construction‑loan assistance program and a pending state HCR decision on a 16‑home cross‑mod award. The board scheduled a public hearing for a $1 million ADU construction assistance pilot.
East Hampton officials told the town board on May 12 that multiple housing initiatives advanced in 2025 will move into implementation in 2026, including program design and state funding decisions expected within days.
Mark Morgan Perez, representing the Office of Housing and Community Development, said the Section 8 program distributed nearly $1,000,000 in rental subsidies across 46 households in 2025 and that the town redeployed some CDBG funds to local ADA and rehabilitation projects.
On a near‑term timeline, Mark reported that the town submitted an application to New York State Homes and Community Renewal (HCR) under a cross‑mod program and that the HCR board will consider East Hampton’s request at a public meeting on May 13. "We might know tomorrow afternoon if it was approved," he said, noting that award would bring 16 deeply affordable units to town.
The board also discussed accessory dwelling units (ADUs). Mark described recently approved ADU code changes that reduce the lot‑size threshold to 15,000 square feet, allow both primary and ADU units to be rent‑restricted and target ADU availability to year‑round residents. He outlined a proposed construction‑loan assistance program offering no‑interest loans of up to $100,000 to help homeowners build ADUs; the proposal would make those ADUs permanently rent‑restricted for year‑round households.
The board scheduled a public hearing for June 4 on a CH fund‑backed ADU construction assistance pilot that would offer ten $100,000 loans (total $1,000,000) if approved. Board members emphasized the need for an online application and data tracking, and asked staff to coordinate with IT on digitizing wait lists and the homeownership lottery.
Mark also cited other 2025 uses of the community housing fund, including preservation of four rent‑restricted units in Sag Harbor and loans/grants to local projects (e.g., $1,000,000 for Gardners Pointe; $500,000 for cottages on Route 114; $71,000 disbursement to Windmill Senior Housing).
