TOWN OF SOUTHOLD
PLUS ONE ADU PROGRAM
PROGRAM GUIDELINES
APPLICATION OPENING DATE: DECEMBER 8, 2023
Purpose
The
Long Island Housing Partnership, as administrator on behalf of the Town of Southold
(the ‘Town”) invites eligible applicants
to apply to the Plus One ADU Program (The “Program”), an initiative to create
and improve Accessory Dwelling Units (ADUs). By working with local governments,
the Program will provide grant funds and
support low- and middle-income single-family homeowner occupants who wish to
build a new ADU on their property or improve an existing ADU that needs to be brought
into compliance with local and state code requirements. Depending on the
property and what the locality permits, ADU’s may be small, stand-alone
(detached) units on single-family lots basement apartments, garage conversions,
or other permitted units. Funds are provided through the New York State Housing
Trust Fund Corporation (“NYSHTFC”).
Grant Assistance
Eligible households may receive up to $125,000 in grant
funds.
Eligibility
Requirements - Applicant
The applicant
must satisfy the following criteria to be eligible for Program assistance:
·
Must be the owner of the property to be rehabilitated
and have resided in the dwelling as their principle residence for not less than
one year
·
Must be current on mortgage payments and all applicable property taxes.
·
Must maintain homeowner’s insurance covering structure replacement
during the Grant Compliance Period (as defined below). Homes located in a flood
zone must have flood insurance coverage during the Grant Compliance Period
·
Ownership must be in the form of either a fee-simple title or a 99-year leasehold
·
Applicants must occupy the property as their
principal residence during the Compliance Period (as defined below)
·
Must have household income at or under
the income limits set forth below
Income Eligibility
Total annual household income must
be at or below 100% of the area median income for Nassau/Suffolk Counties as
determined by the U.S. Department of Housing and Urban Development
(“HUD”). The current 2023 HUD Income
Limits are described below:
Household Size
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
*Maximum Allowable
Income
|
$109,400
|
$125,050
|
$140,650
|
$156,300
|
$168,800
|
$181,300
|
$193,800
|
$206,300
|
*Please note the
maximum allowable income includes all income – overtime,
bonuses, pensions, social security,
401K distributions, tips, etc. Total household income minus allowable
exclusions cannot exceed the maximum annual
income listed above for your household size. LIHP must project the income that will be received
for the upcoming 12-month
period. Tax returns will be
required for all household members
whose earnings will be
used as part of the
income qualification.
Eligible Property
·
The property must be a
pre-existing single-family residence with or without a current ADU located in
the Town.
·
Residences must have all
applicable CO’s in place at the time of application,
unless obtaining a CO is part of the requested assistance for the ADU
·
Property Taxes, Homeowners
Insurance and Mortgages must be paid and reflect a current status at the time
of application.
Compliance with
Municipal Codes & Requirements
Property
must meet the local municipal requirements of the Town and/or the Village, as
applicable, as well as Suffolk County Health Department requirements, if
applicable, for a permissible ADU, including, but not limited to, minimum lot
size and minimum and maximum ADU size, as applicable, design requirements and
other zoning requirements.
Owners
must comply with the Town’s standard process for permit application and
approval, including, but not limited to, submission of required documentation
and payment of fees. Applicants are responsible for reviewing the municipal
codes, regulations and processes for compliance.
Applicants are advised that if the municipal code and requirements conflict
with these Program Guidelines then the municipal code and requirements will
take precedence. LIHP has no authority to waive or otherwise alter the municipal
requirements.
ADU Occupancy
Requirements
The ADU may be occupied by the owner or by a family member
of the owner. Owners are not obligated
to collect rent from the occupant of the ADU.
There is no requirement that the household income of the ADU
occupant be at or under a particular income level unless otherwise required by
the Town.
The ADU must be occupied by a permanent tenant (seasonal
or vacation rentals are not permitted). If the ADU becomes vacant during the
Compliance Period (as defined below), the owner must make good faith efforts to
promptly market the ADU unit to potential tenants
Eligible Improvements
The
Program is designed for homeowners who wish to build a new ADU on their
property or improve an existing ADU that needs to be brought into compliance
with local and state code requirements. Improvements
must address (1) Immediate health and safety concerns; (2) The correction of
existing code violations; (3) Environmental hazards as described in the Program
environmental compliance checklist; (4) Installation of energy conservation
measures; (5) Accessibility for persons with disabilities; (6) Consistency with
any other municipal design guidelines; and (7) Preservation of historical
elements of the building.
Allowable
improvements may include, but are not limited to:
·
Structural Repairs, such as foundations, beams, stairs, roofs, stoops, chimneys
·
Replacements, such as plumbing, furnaces/boilers, water heaters,
electric service.
·
Weatherization, such as insulation, air sealing, storm windows and doors.
·
Interior Improvements, such as repairing floors, walls, ceilings, painting.
All repairs
will be made in accordance with New York State and Local Building
Codes.
Application Submission
Applicants will be required to complete and
submit the ADU application and all supporting documentation to LIHP to determine
their eligibility to participate in the Program. All guidelines must be met.
Only completed applications will be eligible for assistance. Required documentation shall include:
1)
Completed Application
2)
Permanent residency ID card
3)
Deed to the property
4) Current tax bill
5) Current mortgage statement
6) Mortgage
7) The
following income documentation for all household members over the age of 18: (a) Three (3) most recent years filed
federal tax returns
(b) Two (2) most recent pay stubs
(c) Four (4) most recent bank statements
(d) Verification of sources income such as
Social Security, child support, public assistance etc.)
(e) Schools transcripts for full time students
Where and
How to Apply
Applications are available through LIHP’s website at https://www.lihp.org/adu.html . If assistance is needed, including language
assistance, please call LIHP at (631) 435-4710.
Applications will be accepted beginning 9:00 a.m. on December 8, 2023.
The application period will remain open until closed by the Town. Please check the LIHP website for updates.
First-Come
First-Served and Initial Ranked Waitlist
Applications received prior to the deadline
will be placed on a waitlist on a first-come, first-served basis (the “Initial
Waitlist”).
If the Initial Waitlist is over-subscribed the
list will then be prioritized based on the criteria set forth below as required
by NYSHFA and a final ranked waitlist will be established (the “Prioritized
Waitlist”).
Prioritized
Waitlist/Project Selection Committee
Applicants
on the Initial Waitlist will be evaluated by a Project Selection Committee based
on the priorities set forth below in order to establish the Prioritized
Waitlist. Applicants will then be
reviewed for Program eligibility in the order placed on the Prioritized Waitlist.
The
Project Selection Committee will evaluate each application and rank each in
accordance with the priorities set forth below.
·
Projects that assist low or middle-income property owners, who
otherwise would not qualify for construction financing through financial
institutions or who don’t have enough savings to pay for the construction or
preservation of an ADU absent Plus One ADU grant funding. POINTS: 5
·
Projects that would result in an ADU affordable to low-income
renters (at or below 80% AMI). POINTS: 3
·
Projects that are located near public transportation (within 1
mile) POINTS: 2
·
Projects where required building permits would be approved by the
local authorities without a lengthy and/or onerous zoning variance approval
process. POINTS: 1
·
Projects eligible for a real estate tax exemption from the Town
based on the project as an ADU. POINTS:
1
Applicants
will be afforded priority points as set forth above for each of the priorities
listed above. Applicants will then be -re-ranked from the Initial Waitlist based
on the number of priority points – highest to lowest and placed on a Priority
Waitlist. Applicants will then be
evaluated for eligibility in the order placed on the Priority Waitlist. If more
than one applicant has an equal number of points then they will be evaluated in
the order listed from the Initial Waitlist.
Applicants
may self-certify as to the priority in the Application. However, if it is
determined that the priority does not apply then the applicant will be ranked
accordingly.
A
Project Selection Committee will be established by LIHP and will consist of the
following individuals: (1) 2 members of LIHP; and (2) at least one
representative of the Town. The Project Selection Committee may meet in person
or electronically.
Eligibility Review
LIHP will review applicants
for income and other Program eligibility.
Following review, an email will be sent by LIHP to all eligible and ineligible applicants after a full review of the
applicant has been conducted.
Applicants who are deemed ineligible or who
have been removed from the waitlist may appeal the determination by submitting
a request to LIHP. The appeal request
must be in writing and must be received
(together will all documentation) by LIHP within five (5) business days
(Monday-Friday) of the date of LIHP’s notice to applicant of the determination
of ineligibility or removal from the waitlist.
Agreement
with Homeowner
If
eligible and prior to Program commencement, Owner must execute a written
agreement with LIHP in form and substance satisfactory to LIHP agreeing to Program
requirements and which shall set forth the roles and responsibilities of the
parties and which, at a minimum, shall include the following provisions:
·
Agreed upon scope of work
·
Projected amount of financial assistance awarded
·
Estimated project timeline
·
Minimum insurance requirements and the requirement to obtain flood
insurance coverage if the property is located in a special flood hazard area
·
Requirement to engage a contractor and begin construction within
30 days of LIHP approval
·
LIHP may terminate the award and cancel the grant agreement should
the work be inconsistent with the Program rules outlined, agreed upon scope of
work or project design, stated timeline, or if insurance is not maintained by
the property owner or participating contractor
·
Property owner will cooperate with LIHP to monitor the ongoing
maintenance of the property for the ten-year regulatory term
·
LIHP may pay the contractor even if homeowner does not sign-off on
the completion of work and satisfaction, as provided above
·
Owner shall permit a sign to be posted
on the property identifying the participation of the Governor of NYS and the
NYSHTFC and to execute and deliver a written Plus One ADU Property Release Form
and Consent permitting use, name, photos and likeness of owner and the property
for promotional and public relations purposes
·
Owner must permit LIHP, the Town and
their agents access to the property for purposes of inspections and ensuring
Program compliance
·
Owner must agree to indemnify, hold harmless and
defend LIHP, its affiliates, the State of New York, the Housing Trust Fund
Corporation and the Town.
·
Owner must execute and deliver the
Plus One ADU Covenant and Restriction to be recorded against the property at
Owner’s cost and expense ensuring compliance for the Compliance Period
·
Owner must agree to annual
recertification of Program compliance and permit LIHP and/or the municipality
access to the property to inspect and confirm compliance during the Compliance
period
·
Owner will provide LIHP with copies of
any notices received from the municipality for rental renewal and/or
non-compliance
·
Owner will provide LIHP with evidence
of insurance on the property as may be requested annually by LIHP
Contractor
Selection Process; Scope of Work
If it is determined that the
applicant is eligible, LIHP will provide the homeowner with a list of
participating contractors. The homeowner can select a contractor from this list
or the homeowner may select a contractor not on the list provided that the contractor
is fully licensed, certified, has all of the proper insurance and agrees to
adhere to the rules of the ADU Program.
A Contractor cannot, directly or indirectly own the property or be
related to the property owner. LIHP must approve the contractor before work is
started.
Once a contractor is
identified, LIHP’s Construction Monitor and the contractor will conduct a walk-through of the home to determine the scope of the work, cost estimate and provide pictures.
The scope of work will be coordinated
with Town officials. If needed,
additional experts will be contacted. The scope of work, cost estimate and
provided pictures will then be reviewed
and approved by the Construction Monitor.
LIHP, the Construction Manager and the home owner must
sign-off on the scope of work before bids for the work are sought.
Agreement with Contractor
Upon approval by the Construction Monitor and LIHP, the homeowner
will enter into a contract with the selected contractor for the approved scope
of work at the approved cost. Costs in the excess of the approved cost will be
the responsibility of the homeowner.
The Contractor
Agreement is subject to review and approval of LIHP prior to execution. The
Contractor Agreement must include certain required provisions as required by NYSHTFC
as set forth below.
Required Provisions of Contractor Agreement
The Contractor Agreement must
contain, at a minimum, the following provisions:
1) Scope of Work and timeline for project
completion
2) Provisions regarding change orders
which must be subject to prior approval of LIHP. Note: The contractor must complete and
submit the change order form signed by contractor and the homeowner. Change
orders must include a description of the type of improvement, appropriate specifications, materials, timing
and fixed cost.
3) Contractors must supply at least two
(2) references.
4) Contractors must provide proof of
proper insurance. Insurance requirements will be given to Homeowner and Contractor upon
program eligibility.
5) Contractor must bear the risk of loss
for all tools, equipment, and materials not yet installed
into the owner’s property.
6) LIHP, its affiliates, the State of New
York, the Housing Trust Fund Corporation, the Town and the homeowner must be
listed as additional insured on a primary
non-contributory basis including completed operations on the Contractors
general liability insurance. The
insurance provided by contractors must not contain any exclusion related to the
work to be performed or injury to employees, contractors or subcontractors.
7) Contractor must agree to indemnify,
hold harmless and defend LIHP, its affiliates, the State of New York, the Housing
Trust Fund Corporation, the Town and the homeowner.
8) LIHP must be named as a third-party
beneficiary of the Contractor Agreement with enforcement rights.
9) Provision that payment will be made to
the contractor, in full, only upon receipt of required municipal approvals and final
sign- off by homeowner, LIHP, the Construction Monitor and the Town.
10) Contractor shall guaranty work for a
period of one-year. All manufacturers'
and suppliers' written guarantees and warranties covering
materials and equipment furnished under the contract shall
be supplied to the owner.
11) Contractor and homeowner shall certify
that the Contractor is not, directly
or indirectly, an owner of the property
or related to the property owner.
12) Such other terms and conditions as shall
be deemed necessary or desirable by LIHP and/or the Town
Construction Process
During construction, LIHP’s Construction Monitor and the
Town, when applicable, will perform interim inspections to assure that work is
being completed in accordance with local and state building codes. Inspections
will be made as often as necessary (as determined by LIHP) to ensure that the
work being performed is also in accordance with the terms of the construction contract. Homeowner must provide access
as necessary or requested during normal business hours.
When work is completed, a final inspection is conducted by
LIHP Construction Monitor, the contractor and the homeowner prior to final
acceptance of the work.
The Town will be required to inspect and provide a
certificate of occupancy or certificate of completion, as applicable. All municipal approvals and sign-offs must be
obtained prior to final approval and payment.
When
construction is completed, the contractor must submit the Contractor's Final
Invoice.
Project Completion and Contractor Payment
Project
completion requires the following steps:
1) The
owner, LIHP Construction Monitor and contractor walk through and
inspect the property.
2) As applicable, the municipality will
be required to inspect and provide a certificate of
occupancy or certificate of completion, as applicable. All municipal approvals and sign-offs must be
obtained prior to final approval and payment.
3) Owner
must sign-off on completion of work and satisfaction.
4) A
Final Invoice will be submitted to LIHP
5) Checks
for full payment are made payable and delivered to the Contractor
6) The
Plus One ADU Restrictive Covenant will be recorded against the property
NOTE: In cases where the homeowner refuses to sign
the completion of work and satisfaction statement, and the work has been
approved by LIHP’s Construction Monitor and the municipality, the job shall be
considered completed and will be deemed signed-off for payment to the
contractor and the Plus One ADU Restrictive Covenant may be recorded without
further approval or input by the homeowner. The file will indicate the reason
for the sign off.
Securing the Grant
Funds; 10-Year Compliance Period
To
secure the grant funds and ensure Program compliance, owners must execute
Covenant and Restrictions, a copy of which is attached as Exhibit 1 (the “Plus One ADU Restrictive
Covenant”). The Plus One ADU Restrictive Covenant will be recorded against the
property with the County Clerk of Suffolk County. The owner must agree to Program compliance for
a period of 10-years from the date of project completion and final inspection
(the “Compliance Period”). Therefore,
the Plus One ADU Restrictive Covenant shall remain in effect for the Compliance
Period and shall
automatically lapse on the Termination Date (as set forth in the Plus One ADU
Restrictive Covenant).
The
Plus One ADU Restrictive Covenant must be executed by the owner simultaneously
with the execution of the Homeowner Agreement and prior to commencement of any
work. LIHP will hold the executed
document and record it upon completion of the project.
Compliance Requirements
Compliance
requirements for the Compliance Period are as follows and as further set forth
in the Plus One ADU Restrictive Covenant:
·
Owner must maintain the property in
good condition and repair in a manner consistent with the Program objectives
and shall promptly make any needed repairs
·
ADU must be tenant occupied
year-round. Short term rentals,
including vacation and seasonal rentals, are not permitted
·
Owner must occupy the property as a
permanent resident and maintain the ADU in in good condition and repair
·
No first position
mortgage given by the Owner for the purpose of construction or permanent
financing of the Premises shall be refinanced without the prior written consent
of HTFC
·
The property may only be sold to an
Eligible Participant. Eligible Participant is a household with income at or
under 100% of the HUD AMI (as certified by LIHP) and who executes an
Affirmation to abide by the compliance requirements of the Program for the
remainder of the Compliance Period
·
Property will not be moved,
demolished, or materially altered without the prior written consent of HTFC.
·
Owner must maintain the required
insurance on the property for full replacement cost as required herein
Annual Recertification
Annually,
during the Compliance Period, a monitoring affidavit will be emailed annually
to the owner by LIHP to verify in writing that owner is in compliance with the
Program. Owner is required to sign the affidavit, have it notarized and return
it to LIHP. Failure to do so will be
deemed a breach of the Plus One ADU Restrictive Covenant and may trigger
recapture of the funds.
Default and Recapture
In the event of owner’s non-compliance during the
Compliance Period, owner must return the outstanding balance of the grant funds
to LIHP for recapture by HTFC. The amount to be repaid and recaptured shall be
determined by reducing the original amount of grant assistance by one-tenth
(1/10th) for each year of the Compliance Period that the Owner is in compliance.
Please see the Plus One ADU Restrictive Covenant for details.
FAIR HOUSING AND NON-DISCRIMINATION
LIHP is committed to promoting fair
housing, equal opportunity, and non-discrimination in compliance with all
federal, state and local laws, including, but not limited to, the Fair Housing
Act, as amended by the Housing for Older Americans Act, the Americans with
Disabilities Act, the Civil Rights Act, and the New York State Human Rights
Law. The LIHP staff is available to
assist with the application, and answer questions about eligibility
requirements. In furtherance of this
policy, LIHP shall not discriminate on the basis of race, creed, color,
national or ethnic origin, sex, sexual orientation, gender identity, familial
status, source of income, religion, disability, veterans’ status, age, or any
other basis prohibited by law.
LIMITED
ENGLISH PROFICIENCY AND ACCOMMODATIONS
Applications and Program Guidelines are
available in English and Spanish and will be made available in other languages
as requested. LIHP will
take reasonable steps to ensure that persons with Limited English Proficiency
(LEP) and persons who need assistance or who have a limited ability to speak,
read, or write English, will have meaningful access and an equal opportunity to
participate in the Program.
Interpreters, translators and other aids needed to comply with this
policy shall be provided as reasonably necessary. If you have any questions regarding the
guidelines, or need assistance including language assistance such as
translation and/or oral interpretation services, please contact the LIHP at info@lihp.org or call LIHP at 631-435-4710.
Disclaimer: It is understood that this is not an offer and that terms
and conditions may be changed at any time by NYS, the Town or the Long Island
Housing Partnership, Inc., and Affiliates. It is further understood that notices by the Long Island Housing
Partnership, Inc., and Affiliates may be made in such manner as Long Island Housing
Partnership, Inc., and Affiliates may determine, including solely by email or advertisement.
It is also understood that application submittal is not a guarantee that you meet
all program requirements to purchase a home.