Town of Southampton Seeks to Boost Housing Affordability and Support Local First Responders • Southampton, NY

SOUTHAMPTON, N.Y. — Councilmembers Michael Iasilli and Tom Neely—liaisons to the Town’s Housing Department—are advancing a major initiative (Res. No. 2026-1116) to enhance housing affordability and support local volunteer first responders through proposed amendments to the Community Housing Fund (CHF) Project Plan. The Town Board has voted to direct a public hearing for a resolution that significantly expands the First-Time Homebuyer Down Payment Assistance Program from 3% to 18%.

Rising housing costs, mortgage rates, closing costs, and private mortgage insurance have made homeownership increasingly challenging for the local workforce and first-time homebuyers. To combat this, the updated project plan will remove the previous rigid cap and establish a new maximum assistance amount of up to 18% of the purchase price of an eligible home. This substantial increase aims to help qualified buyers who contribute a 2% down payment eliminate the need for private mortgage insurance and lower their monthly principal and interest payments.

“We are incredibly grateful to Housing Director Kara Bak and the Housing & Community Development team for working on this with us,” said Councilmember Michael Iasilli. “By expanding down payment assistance and offering loan forgiveness to our dedicated volunteer first responders, we are not only helping working families put down roots in Southampton, but we are also fortifying the recruitment and retention of the essential personnel who keep our community safe,” he added.

***

“This adjustment will provide major assistance for folks seeking an affordable place to live here in the town, including first responders,” commented Councilmember Tom Neely.

***

Kara Bak, Director of Housing and Community Services noted, “one of the biggest barriers to owning a home in today’s market isn’t the monthly mortgage payment, its saving enough cash needed for the down payment. In the Town of Southampton where home prices are extraordinarily high, increasing the CHF down payment assistance to 18%, can make existing homes truly affordable for first time homebuyers. The larger down payment significantly reduces the amount that needs to be financed, which lowers the monthly mortgage payment and when combined with the buyer’s required contribution, it can eliminate the need for private mortgage insurance…The First Responder Forgiveness Program provides an additional incentive for the recruitment and retention of volunteer first responders, helping them to live, serve and remain in the Southampton community. By helping existing and potential first responders achieve long-term homeownership, we are not only supporting the individuals who dedicate their time to protecting our residents, we are strengthening the Town and providing for a sustainable community.”

The resolution introduces a dedicated volunteer service-based forgiveness component for qualifying volunteer first responders, including members of local fire departments and ambulance corps. Recognizing that housing costs create a barrier for these essential community members, the program establishes a prorated forgiveness formula: one-tenth (1/10) of the DPAL loan will be forgiven for each completed year of qualifying volunteer service, leading to full forgiveness after ten years.

“I have been with Southampton Volunteer Ambulance for 22 years as a volunteer EMT. We train young people to become EMTs and drivers, and then watch as they leave our town because they can’t afford housing here. All of our top call responders are seniors; this is not sustainable. We need affordable housing like this for our first responders!” said Town Trustee Jimmy Mack, who also serves as with Southampton Volunteer Ambulance.

***

The initiative has been co-sponsored by the entire Town Board.

Additional questions can be directed to Housing Director Kara Bak at KBak@southamptontownny.gov

***

** Public Hearing Details
The Town Board will hold a public hearing to consider the amendments on Tuesday.
September 8, 2026, at 1:00 p.m.