SUFFOLK CLOSEUP - Housing In Suffolk County Part III Programs For Affordable Housing

SUFFOLK CLOSEUP

By Karl Grossman

“LI HOME PRICES GO UP, UP, UP,” declared the front-page headline in Newsday last week. The article began: “Home prices reached a new high in Suffolk County…The median home price jumped to $535,000 in Suffolk last month…”

And that was $10,000 more than what Peter J. Elkowitz, Jr., president and CEO of the Long Island Housing Partnership, said that the average price—$525,000—of a house in Suffolk had just gone up to. He was giving a presentation earlier in the month before Long Island Metro Business Action on “Affordable Housing, Opportunities & Obstacles.” 

Houses suddenly now at a median price of $535,000—quite an obstacle in finding affordable housing! 

What existing governmental programs are there available for people seeking help in purchasing a home in Suffolk?

On the federal level, there’s the Federal Housing Administration, now part of the U.S. Department of Housing and Urban Development, “helping people become homeowners since 1934,” notes HUD’s website. “How do we do it?” Because the FHA “insures the loan…your lender can offer you a better deal,” it says. And with an FHA loan there are “low down payments.” It continues: “Buying your first home? FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price.” And there’s “low closing costs, easy credit qualifying.”

We obtained an FHA loan to buy our first home decades ago in Suffolk—for $19,000, the total not even twice the $10,000 price increase. Our FHA guaranteed 30-year 3% mortgage cost $200 a month. But for a house in the now median $535,00 range in Suffolk, affording a mortgage is difficult. Even with currently low interest bank rates, for a 30-year mortgage at 3%, the payments would be $2,108 a month, according to “Mortgage Calculator” online. 

Various websites market houses on which owners couldn’t keep up mortgage payments and thus they got foreclosed. “Houses priced from $10,000,” several websites featuring such housing claim. But in these parts, there are no houses on which mortgages were foreclosed at even close to that price. I inputted Smithtown on www.foreclosure.com and all the houses are listed at more than $400,000. 

As to state programs, the HUD website outlines “resources” and under “Homeownership: New York” are the encouraging words: “Owning a home is a big part of the American Dream.” There is a section on “Getting Started” which notes that in New York State there are state “assistance programs—resources and programs to help you buy and maintain a home.”

One is run by the State of New York Mortgage Agency which describes itself as offering “low-interest mortgage loans and programs to help qualified buyers purchase their first home. SONYMA provides access to affordable homeownership by removing many of the hurdles faced by first-time homebuyers. From increasing your understanding of the overall homebuying process, to helping secure funds for a down payment, SONYMA is with you every step of the way.”

As for Suffolk, its government website says: “Suffolk County operates several programs to support and encourage the creation of affordable and workforce housing through the Department of Economic Development and Planning and the Suffolk County housing opportunities programs.”

These include the county’s Affordable and Workforce Housing Land Acquisition program in which it “partners with developers…and will reimburse the developer for infrastructure costs when construction is completed to reduce the cost burden and allow developers to charge less for the rent or purchase price of newly constructed or rehabilitated units. Eligible infrastructure improvements include, but are not limited to roads, parking, sewers, water, sidewalks, street lighting and appurtenant landscaping within the development area.” 

Then there’s the county’s Section 72(h) Affordable Housing Transfer Program. It provides for “the county to transfer parcels currently in the county’s real estate inventory”—taken because of non-payment of taxes—”to municipalities for the construction or rehabilitation of affordable housing.” Jim Morgo related last week how he “came up with the concept” in 1987 as Suffolk’s deputy county executive for housing. “Since then, countless properties—the most expensive items in building homes—have been conveyed from the county to towns and villages and then to groups like the Habitat for Humanity and the Long Island Housing Partnership at no cost, and affordable homes have been created on these transferred properties.”

More next week. 

Karl Grossman is a veteran investigative reporter and columnist, the winner of numerous awards for his work and a member of the L.I. Journalism Hall of Fame. He is a professor of journalism at SUNY/College at Old Westbury and the author of six books. 

Congressman Lee Zeldin's Statement Regarding His Diagnosis Of CML

On Saturday, September 18, 2021, Congressman Lee Zeldin (R, NY-1), candidate for governor of New York, issued the following statement regarding a diagnosis of chronic myeloid leukemia.

Congressman Lee Zeldin“Through early detection, last November, I was diagnosed with early stage chronic myeloid leukemia (CML). I then began treatment with an immediately positive response and no side effects. Over the last 9 months, I have achieved complete remission, am expected to live a normal life, and my doctor says I currently have no evidence of this disease in my system. My health is phenomenal, and I continue to operate at 110%.

“Right now, I’m once again criss-crossing New York State in our campaign for Governor, hitting Monroe, Wayne, and Ontario Counties yesterday, and Jefferson, Lewis, and Hamilton Counties today. At no point have we slowed down at all and my lowest gear is always ALL IN. I have also not missed any Army Reserve Duty as a result of this diagnosis. 

“I’m grateful for all of the men and women in the medical field who have not only treated me these past several months, but who pour their heart and soul into treating so many others in need of their expertise, energy, and passion. The medical field in our country is filled with the very best of society.”

Congressman Zeldin’s Hematologist Jeffrey Vacirca commented in Congressman Zeldin’s statement, “In November 2020, following a diagnosis of early chronic myeloid leukemia, Congressman Zeldin began targeted therapy, to which he immediately responded extraordinarily well and has achieved complete remission. Successfully treated early chronic myeloid leukemia is now a chronic disease, which carries a normal life expectancy. Congressman Zeldin is incredibly healthy, is expected to enjoy a normal life and has no evidence of disease.”

According to the Mayo Clinic “Chronic myelogenous leukemia (CML) is an uncommon type of cancer of the bone marrow — the spongy tissue inside bones where blood cells are made. CML causes an increased number of white blood cells in the blood.”

SUFFOLK CLOSEUP - Part II Hauppauge-Based LI Housing Partnership Tackles Affordable Housing Crisis

SUFFOLK CLOSEUP

By Karl Grossman

With the average price of a house in Suffolk having now gone up to $525,000, the affordable housing situation in the county has become yet more of a predicament for so many people. “The need for affordable housing has reached crisis proportions,” the county government’s affordable housing website declares.

What is being done, what has been done, to deal with this crisis?

A relatively new affordable housing program, the Long Island Partnership Community Land Trust, has been acquiring land for affordable housing in western and central Suffolk. 

The Community Land Trust is an initiative begun in 2018 by the Hauppauge-based Long Island Housing Partnership. The Partnership says in its mission statement that its aim is to “provide affordable housing opportunities to those who, through the ordinary, unaided operation of the marketplace, would be unable to secure, or remain in, a decent and safe home.”

The Community Land Trust, a not-for-profit corporation set up by the Housing Partnership, “acquires multiple parcels of land throughout a geographic area with the intention of retaining ownership of these parcels forever. The new homeowner owns the home on a parcel and the land remains in the Community Land Trust, thereby making the home more affordable,” says literature on the program. The Trust “retains” the land “for the community and never sells it” and “provides a very long-term lease of land, typically 99 years, for the exclusive use by individual homeowners.” 

Peter J. Elkowitz, Jr., president and CEO of the Housing Partnership, said property for this initiative has already been acquired in Smithtown, in Patchogue and Bellport in Brookhaven Town, in Melville in Huntington Town and in Babylon Town.

The program “makes homeownership possible for many through this innovative program that offers homes that have a lower cost since the land is not added to the purchase price.”

As part of the arrangement, “legal restrictions” are put in place, said Mr. Elkowitz, to prevent the owner of a house on Land Trust property from “flipping it” for profit. The land, he said, must remain in the affordable housing “pipeline.”

The Housing Partnership calls the program “a new model of homeownership” which will produce “permanently affordable homes.” 

A program to help the East End is the Peconic Bay Region Community Housing Act which for a second time has passed the New York State Legislature and is heading to the state’s new governor, Kathy Hochul, for her consideration. In 2019, her predecessor, Andrew Cuomo, vetoed the measure. If she signs it, it would go to the voters in the five East End towns for their approval.

It would provide for a half-percent tax on real estate transfers and “give the towns of the Peconic Bay region the authority and resources needed to establish a dedicated fund to provide needed housing opportunities,” says a legislative memorandum attached to it.

The Peconic Bay Region Community Housing Act was sponsored by State Assemblyman Fred W. Thiele, Jr. of Sag Harbor and State Senator Anthony Polumbo of New Suffolk. 

It would levy an additional half-percent to the two-percent real estate transfer tax currently existing on the East End through the Peconic Bay Community Preservation Fund. This tax, which began in 1999 after state approval and then support in referenda in the five towns affected, has raised more than a $1.7 billion since. Proceeds are used to save farmland and open space, maintain water quality and for historic preservation.

Under the title “Justification,” the “Memorandum in Support of the Legislation” for the Peconic Bay Region Community Housing Act, states, “The adverse impact resulting from the lack of housing opportunities is severe….Traffic congestion is intensified by the importation of labor from areas with lower housing costs” and “the lack of housing opportunities is resulting in residents being forced to live in substandard, illegal conditions. The unique demographics and economics in the Peconic Bay region and a lack of affordable dwelling units are contributing to this housing shortage.”

With the money brought in under the program says the body of the legislation, “A town may provide financial assistance to a first-time homebuyer who is a resident of the town or who is employed in the town.” It could be “in the form of a grant or a loan.”

Western and central Suffolk County towns could also, with state legislation submitted on their behalf, then state approval and passage in local referenda, have their own Community Housing Act.

 More next week on the affordable housing crisis.

Karl Grossman is a veteran investigative reporter and columnist, the winner of numerous awards for his work and a member of the L.I. Journalism Hall of Fame. He is a professor of journalism at SUNY/College at Old Westbury and the author of six books. 

Smithtown Recreation Announces Horseshoe League Champions

Smithtown Recreation is pleased to announce our 2021 Horseshoe league champions as well as second place finishers.  

On Wednesday, August 18^th the first round of the Horseshoe league semi-finals were played in the best of 5 format.  The 1^st place team, Lou Malandra & Larry Bond and 2^nd place team Paul Williams & John Parish

had a bye while 3^rd place team Justin Flores & Chris Malandra played 6^th place team of Anthony Esgro & Mike Rozza.  Justin & Chris won 3 – 0 and will play in the finals against Paul & John.  

Fourth place team, Jay McConnell & Peter Sikinger played 5^th place team, Ed Riss & Jeff Barrington.  Ed & Jeff won 3-2.  Ed & Jeff will play Lou & Larry in the finals.

On Wednesday, August 25^th, 1st place team of Lou & Larry played Ed & Jeff.  Lou and Larry won 3-0 and waited to see who they would face in the finals.  Paul & John played Justin & Chris.  Justin & Chris won 3-1 and advanced to the finals to play Lou & Larry.  

In the championship match Lou & Larry won 3 – 2 against Chris & Justin.  Congratulations to Lou & Larry for winning the 2021 Smithtown Recreation Doubles Horseshoe League!   

SUFFOLK CLOSEUP - Housing In Suffolk County

SUFFOLK CLOSEUP

By Karl Grossman

“Welcome to Suffolk County’s affordable housing website. The need for affordable housing has reached crisis proportions throughout the county.” Those are the opening lines of Suffolk County government’s website involving affordable housing here.

Indeed, it is a crisis!

When we purchased our first house in Suffolk, in 1964, in Sayville, the price was $19,000. And there were plenty of houses at the time up for sale in the $15,000 to $17,000 range. But we opted for a roomier place to raise our family after renting for three years (initially, a cottage in Islip for $75 a month).

That was a long time ago, of course, and there’s been a change in what a dollar is worth, and salaries have gone up appreciably. Still, says Jim Morgo, the first president and CEO of Long Island Housing Partnership from when it began in 1988, even with the change in value of a dollar and increases in salaries, the percentage of the rise in the price of housing in Suffolk substantially exceeds that. (As for rents, they’re now “close to $3,000 a month,” he notes.)

Mr. Morgo’s successor after his 17 years at LIHP, Peter J. Elkowitz, Jr., said in a Long Island Metro Business Action presentation last month—titled “Affordable Housing, Opportunities & Obstacles”—the average price of a house in Suffolk had just gone up to $525,000.

“The big issue is supply of homes under $400,000. They are very difficult to find these days,” said Mr. Elkowitz. This $525,000 price had “gone up 19% from the same time last year,” he said. (The $400,000 price is considered, debatably, as “affordable.”)

A big factor: COVID-19 and “people looking for more space to live in,” he said. This involves “health issues.” COVID-19 refugees have flocked to Suffolk County since the pandemic began.

There is “an extremely limited” market overall of houses for sale here with commonly would-be buyers “offering cash on the spot,” said Mr. Elkowitz. 

“LI homes sales soar as Suffolk median price breaks the $500,000 barrier,” was the headline of a Newsday story by its real estate reporter Maura McDermott in June. It started: “Want to buy a home in Suffolk County? It is likely to cost you at least half a million dollars.”

As for houses on the East End, a follow-up story she wrote in August began: “Even the ‘affordable’ East End isn’t so affordable anymore. A year’s worth of COVID-19 bidding wars has driven prices up into the $1 million range in East End communities that once were reasonably priced destinations for those seeking idyllic places to live and vacation on Long Island.”

What about when, hopefully, this pandemic is over or recedes substantially? Ms. McDermott quoted Jonathan Miller, president and CEO of Miller Samuel, a real estate appraisal company which conducts research on market trends, saying the ability to work from home “is not going away even if the pandemic is brought under control or eradicated. Remote work is now an embedded factor in the location calculation of consumers.”

According to realtor.com, the “median sold home price” for a house in Sag Harbor is now $1.3 million. We moved from Sayville to Sag Harbor in 1974 buying a house on an acre and a quarter for $45,000.

The unaffordability of a house on the East End now is exemplified every day of the work week by what’s been dubbed “the trade parade”—the line of bumper-to-bumper traffic on Route 27, County Road 39A and Montauk Highway, in the morning very slowly heading east with tradespeople and others who would never be able to afford a house today on the East End. And then, as afternoon arrives, the “trade parade” reverses direction and bumper-to-bumper returns west very slowly. 

The Suffolk County “affordable housing” website says: “Families and businesses have all felt the repercussions of this challenge as young workers and our elderly have left Long Island for more affordable housing elsewhere.” Mr. Morgo points out: “In places like North Carolina and parts of Pennsylvania you can get double the size of a home at half the price here.” 

“The issue,” says the county’s website, “did not develop overnight, nor can it be solved overnight. It will take all of us working together to find a multitude of solutions to keep our families together.” 

Next week: what is being done, what can be done, to deal with this crisis?

Karl Grossman is a veteran investigative reporter and columnist, the winner of numerous awards for his work and a member of the L.I. Journalism Hall of Fame. He is a professor of journalism at SUNY/College at Old Westbury and the author of six books.