Company presents information for Town, school employees on shared equity in home buying

Tuesday’s Town Board work session dealt with the most contentious issue of the day — housing. There was a presentation by a representative of a San Francisco company that provides capital in shared equity agreements to pay part of a down payment on a home for municipal, school district, medical and other employees it deems “essential” to a community.

But before the presentation, Supervisor Gerry Siller and Community Housing Fund Advisory Board Chairwoman Elizabeth Hanley said they were pleased with the turnout for the information session on an affordable housing plan at the Library on July 16 — Community Housing Board hosts first open house: Some questions answered, controversy persists

Last October, Gov. Kathy Hochul (D) signed legislation that will allow the five East End towns to establish a new real estate sales transfer tax for community housing funds. That law will authorize the towns to hold referenda on adding 0.5% to the existing 2% Community Preservation Fund tax on real estate transactions in those towns.

Each town must present a detailed plan for the funds to their respective communities before holding a referendum.

In May, the Town Board unanimously established a Community Housing Fund, where monies received from various sources solely dedicated to building or acquiring affordable housing — including the possible new tax, grants and Town funds — would be deposited.

Mr. Siller said Tuesday, that the open house was a good way to answer questions and get information to the public on a housing plan, and there will be more to follow.

He also noted that if the voters reject the referendum in November that would allow the extra 0.5% onto the existing real estate transfer tax, it would make no difference to the Town’s plans for affordable housing. “Nevertheless,” Mr. Siller said, “we’re going forward with a housing plan.”

He then turned the meeting over to Loni Fa, an account executive with Landed, Inc., who joined via Zoom. Landed is a company that contracts for a shared equity arrangement with mainly municipal, medical and educational employees.

The company will, in most cases split a 20% down payment for a home with the employee. The shared equity arrangement is, Mr. Fa noted, not a loan and there are no monthly payments. The contract is for a shared investment, to last from two to 30 years. Landed will share in the home’s appreciation in value, either when it’s sold or refinanced.

And if the property has depreciated in value, Landed will share in the loss, reducing the homeowner’s total repayment.

Mr. Fa cited an example of Landed putting up 10%, or $50,000, on a home costing $500,000. If that property appreciates to $600,000, under the agreement, Landed would get back its $50,000 investment plus $25,000 for the $100,000 appreciation value.

By the end of the contract, if the property has a depreciation, Landed takes the loss with the homeowner, reducing the total repayment.

The municipality, school district or other employers have no financial obligation to Landed. Mr. Fa also said the company also will provide “guidance and resources and advise on financial solutions” to all people who contract with them.

Mr. Fa said his company has had  more than 1,000 contracts to date with buyers in 300 municipalities, ranging from Stony Brook Southampton to employers in the South, the West Coast and Washington, D.C., just to name a few.

Anyone who works 20 hours or more for the Town would be eligible for the plan, Mr. Fa said.

Police Chief Jim Read and School Superintendent Brian Doelger, Ed.D. were in attendance and said they were interested in the idea and would welcome further discussion.

Mr. Siller asked if other people in essential services, such as ferry employees and volunteers to the Fire District and Emergency Medical Services would be eligible. Mr. Fa said he would look into it and get back to the Town Board.