The Town of Southampton, through its Community Housing Fund (CHF), is offering funding to eligible Town’s residents whose household income is over 100% Area Median Income (AMI). The loan is for the construction of Accessory Dwelling Unit (ADU) for the Town’s workforce.

An ADU* is a secondary dwelling unit established in conjunction with and clearly subordinate to the single-family detached dwelling (one-family dwelling, detached), whether as a part of the same structure as the primary dwelling unit or a detached dwelling unit on the same lot

• $125,000 loan-grant at Zero percent (0%) interest over 20 years.

• Loan balance is payable in full at the sale of the home or refinance transaction.

• No income limit is required of the property owner, but household income of tenant(s) must be at or below current Nassau/Suffolk Area Median Income (AMI) of 130%.

• Homeowners and tenants must occupy either the home or the accessory dwelling unit as primary residence.

• At least one tenant must provide documentation that he/she works full-time (at least 30 hours a week) at a business located in the Town of Southampton.

• Town’s approval is required for an ADU that will remain vacant for more than remain vacant or without an active rental permit for more than six (6) months.

• An unoccupied unit may result in a Town Code violation and may lead to the removal of the ADU and the demand to repay the loan in full.

• Eligible Costs

  o   Construction Costs, Planning and Design Costs, including architectural and building plans, surveying and building permit application costs.

• The monthly rent must comply with the Town of Southampton’s rental guidelines in order to ensure that it remains affordable. (See chart below for 2024)