Hot real estate market fuels CPF revenues

Shelter Island continues its march toward increased preserved land with the release of numbers from the Community Preservation Fund (CPF) for the first three quarters of 2020.

Shelter Island has seen a 32.1% increase in CPF money from what it received for the first three quarters of 2019, which is also a leading indicator of home sales.

The latest numbers were released by Assemblyman Fred Thiele Jr. (I-Sag Harbor), sponsor of the legislation that created the CPF.

Money for the CPF comes from a 2% tax that buyers pay when purchasing East End properties and is used in turn to purchase open space for preservation and fund water protection programs.

“The increase in CPF revenues is fueled by the exodus of people from New York City and other population centers to the East End,” Mr. Thiele said, referring to the COVID-19 pandemic.

Increases in the other four East End towns have been booked in their CPF funds as well.

Mr. Thiele noted the revenues so far this year represent the third largest take in the history of the program.

The revenues for just nine months this year are ahead of those for the entire 2019 year when real estate sales were lagging on the East End, the legislator said.

The town has taken in $1.48 million so far this year as compared with $1.12 million for the same nine months of last year.

Overall, the five East End towns saw CPF revenues increase by 45.5%, with $84.68 million coming to their coffers so far this year compared with $58.2 million for the same period last year.

“CPF revenues for September 2020 are more than double last year’s total for the same month,” Mr. Thiele said. “The nine-month total for 2020 is the highest year-to-date revenue total in the 21-year history of the CPF,” he said.

Southampton leads the way with a 58% increase in its CPF revenues. That town has garnered $50.03 million for the first nine months of this year compared with $31.54 million for the same period in 2019.

East Hampton followed with a 37.8% increase based on $23.95 million this year compared with $17.38 million last year.

Riverhead has seen a 31.3% increase in CPF money, taking in $3.27 million for the first three quarters of 2020 compared with $2.49 million for the same period of 2019.

Southold saw an increase in CPF money by 4.7%. It has brought in $5.94 million as compared with $5.67 million for the same period last year.