Debate heats up on who pays for 2 School Street property
A debate has been taking place at Town Hall and in the community at large: Should the Community Housing Board use money to purchase the house on 2 School Street to be used for affordable rentals?
To the consternation of some residents who have been critical of the planned purchase (which has yet to close) Shelter Island Town was the highest bidder to purchase the property at auction.
Councilman Benjamin Dyett raised the question at the Feb. 12 Community Housing Board (CHB) meeting. The CHB has more than $1.5 million in its coffers, money generated by the real estate transfer tax paid by most purchasers of Island properties. But Councilwoman Liz Hanley, liaison to the CHB and its former chairwoman, said the money may be needed for some other projects, and to take $791,000 to pay for the purchase would cut sharply into those funds.
New CHB Chairman Bran Dougherty-Johnson noted the decision is not one the committee can act on without Town Board approval. He added that more information would be needed to assess Mr. Dyett’s suggestion. “We can’t make that decision ourselves,” Mr. Dougherty-Johnson said. “We should think about it a lot more.”
ADU update
The ADU-Plus One program, which enables those who can receive a State grant of up to $125,000 to add a rental unit to their property has four accessory dwelling units completed to date, with another under construction. Yet another is in the design stage and two other property owners have commitments for grants. There are seven who have been approved for grants, but have not signed all the paperwork involved. Accessory dwelling units, or ADUs, allow property owners to either adapt a main house to accommodate a tenant, or develop a housing unit that could be in a separate structure on their property.
One applicant has dropped out of the process, opening that slot for another person, Mr. Dougherty-Johnson said. The Town was approved to use $2 million of State money for 16 units and is hoping to receive another $2 million, and is screening property owners interested in creating ADUs on their lots.
WQI grants for ADUs?
In addition to construction grants for ADUs, some property owners need upgraded septic systems. Depending on requirement, applicants are sometimes able to qualify for money from the State, County and Town.
But there is one case in which a person received septic grants from the State and County, but is unlikely to qualify for a Town Grant.
Representatives of the five East End towns have been exploring whether the Water Quality Improvement grants can be used for ADUs. If the local WQI grants can be made available, Mr. Dougherty-Johnson said he would like to explore whether the CHB can identify a way to fund the septic upgrades.

