The Town of Southampton, through its Community Housing Fund (CHF), is offering funding to eligible Town residents for the construction of accessory dwelling units (ADUs). These units help address the shortage of affordable housing in many of the Town of Southampton’s hamlets.

Note: In the Town of Southampton’s local code, ADUs are referred to as “Accessory Apartments.”

ADUs provide an additional option for housing that is typically more affordable than renting or buying a standalone unit. They can also help accommodate individuals or families who may otherwise struggle to find suitable housing within their budget.

Loan Highlights

• Homeowner Income Eligibility: There is no income limit for homeowners.

• Tenant Income Eligibility: The household income of the tenant must be at or below current Nassau/Suffolk AMI of 130%. 

• No Interest Rate Loans for 20 years. Loan repayment begins year 2.

• Owner Occupancy: Both the homeowner and tenant must occupy the apartment as their primary residence to prevent the units from being used for short-term rentals or investment purposes.

• Workforce Housing: At least one Tenant must work at least 30 hours a week at a business located within the Town of Southampton.

• Affordability Restrictions: The limit on the rent charged must comply with the Town rental guidelines to ensure that it remains affordable for renters.