Affordable homeownership is the key to generational wealth for the American middle class. An estimated 60% of people in the United States own their homes, while in Suffolk and Nassau Counties, the rate is 80%.
However, with all the benefits of uplifting a family to financial stability, getting a foothold in homeownership can be very challenging. Due to the limited housing stock and high demand, the average medium sales price for a home in Nassau County is $767,000 and $638,376 in Suffolk. Further aggravating the affordability crunch is the rates on a 30-year mortgage, which are presently at or near 7%.
Despite these challenges, there are options.
The Long Island Housing Partnership (LIHP) is a community collaboration that bridges public and private down payment grants, affordable home listings, or affordable rentals into a one-stop shop.
“Originally an economic development initiative created by the Long Island business community, the goal was to bring down the cost of homeownership in an effort for employers to maintain and attract workers,” stated founding president of LIHP James Morgo.
In contrast to low-income housing, LIHP’s programs are focused on workforce housing, which is middle-class families with incomes that fall within 80% of the area’s medium income. Average qualifying income caps are $87,500 for a one-person household to $124,950 for a household of four.
Workforce Rental Options
Through private partnerships with developers, many newly constructed luxury rentals in the region’s downtown hubs have 20% of the housing reserved for workforce applicants. In the Shoregate development in Bay Shore, 80% of medium-income formula rentals range from $2,310 for a one-bedroom to $2,570 for a two-bedroom. In Nassau County, in communities such as Roslyn, the threshold for income is capped higher at $131,200 for a household size of one, qualifying for a rental of one bedroom at $3,220 in the Village of Roslyn Bryant Plaza.
Down Payment Assistance
One of the most established homeownership assistance programs offered by LIHP is the Employer Assisted Housing Program. Multiple large employers participate in local grant matching or forgivable down payment loans with deferred repayment. If not employed by a participant in these programs, down payment help for first-time home buyers is provided through assistancegrants that pay up to $30,000 in Suffolk County, or up to $50,000 in Nassau County. In addition to the county grants, the Town of Brookhaven offers up to $50,000 on home purchases within their town’s jurisdiction, while Town of Babylon has a similar program that offers up to $25,000.
Subsidized Affordable Homes
The subsidized home program started 30 years ago with the county transferring tax foreclosures to local towns to provide affordable purchasing options for middle-class home buyers.
This program’s success has expanded to the construction of various developments. One of the first such developments was the Southwind Village of Bay Shore. This development revitalized one of the worst blocks in the downtown hub, condemning all the homes abandoned and occupied by squatters.
The 2002 completed development was 78 three-bedroom townhomes, which cost $78,000-$82,000. The success of this development paved the way for the revitalization of the downtown area, with the same homes listing at $545,0000 today.
Additional developments in the Bay Shore hamlet included the 2011 construction of 40 condos in Courtland Place. LIHP’s current construction project is the Willow Wood Overton Preserve Development in Coram. These homes include two bedrooms, bathrooms, and garage townhomes fully subsidized at a sales price of $279,000.
For homebuyers 55 and older, the Bayport Gardens development in Bayport has the townhomes set at the initial cost of $468,600 but is adjusted lower based on your income.
Any remedy or a cure-all solution for affordable homeownership will require a larger housing inventory through higher-density housing developments. According to a study by late Long Island Master Planner Lee Kopelman, redevelopment of all downtown hubs, underutilized parking lots, and railroad stations could unlock enough space for 200,000 additional housing units, freeing up an inventory for the coming generation.
This plan would prevent expansion into our pristine forests and other open spaces, but it comes with resistance from critics who argue that the region would become urbanized like Queens. Without a viable plan, the LIHP has fought the rising housing costs for more than 36 years.
“If it were not for our collaboration with the banks, the housing partnership would have never survived,” explained Jim Morgo.
For more information on the Long Island Housing Partnership programs, visit https://www.lihp.org/ or call (631) 435-4710.
