East Hampton Launches $1 Million ADU Construction Assistance Pilot Program
The Town of East Hampton officially launched its 2026 Accessory Dwelling Unit Construction Assistance Pilot Program (ADU CAP) on Monday, June 22, dedicating $1 million from the Community Housing Fund to finance the creation of affordable secondary housing. The initiative offers up to ten no-interest, deferred-payment loans of $100,000 each, aimed at helping primary homeowners construct accessory units on their properties. Applications for the program are currently being accepted through August 21, 2026.
Did You Know? The program requires that any accessory dwelling unit created with these funds be rented year-round to eligible tenants, a move designed to address the town’s ongoing need for permanent, rather than seasonal, housing solutions.
How the Loan Program Functions
According to the Town of East Hampton, the $1 million in funding is structured to eliminate the financial barriers associated with residential construction. Each of the ten available loans will carry no monthly payments, with the total balance becoming due only upon the sale of the property or at the owner’s discretion. The town will secure each loan through a formal lien filed against the property in favor of the Community Housing Fund.
Town Supervisor Kathee Burke-Gonzalez stated that the program is intended to utilize existing residential footprints to expand the local housing supply. Councilmember Ian Calder-Piedmonte, the sponsor of the legislation, noted that the upfront costs of construction have historically prevented many homeowners from participating in housing solutions, a hurdle this program seeks to clear.
Eligibility and Property Requirements
To qualify for the assistance, applicants must own and occupy the property as their primary residence. The property must contain at least 15,000 square feet of lot area and cannot be situated within the Harbor Protection Overlay or Affordable Housing Overlay districts, as specified by town code. Units must meet specific sizing requirements: attached units must be at least 300 square feet and cannot exceed 50 percent of the home’s total floor area—capped at 1,200 square feet—while detached units must be between 300 and 600 square feet.
Tenants occupying these new units must also meet income eligibility requirements. The town has defined eligible tenants as current or former East Hampton residents (who lived in the town within the last five years), local workers, or family members of the property owner.
Expert Insight
Expert Insight: Samantha Carter notes that by targeting the “missing middle” of housing through accessory units, the town is attempting to bypass the lengthy timelines often associated with large-scale multi-family developments. The trade-off is a reliance on individual homeowners to act as landlords, which places the burden of property management and compliance on private citizens rather than professional developers.
What May Happen Next
If the pilot program successfully incentivizes the construction of all ten proposed units, the town could evaluate the data to determine if the $1 million allocation is an effective model for long-term housing expansion. Analysts might expect the town to monitor the occupancy rates and the affordability of these units closely. Depending on the volume of applications received by the August 2026 deadline, local officials may consider expanding the program or adjusting the loan terms to increase accessibility for a broader range of property owners.
Interested parties can access full application materials and program details at the official Town of East Hampton website.
Frequently Asked Questions
What is the maximum amount an applicant can receive through the ADU CAP?
The program provides construction assistance loans of up to $100,000.
Are there specific square footage requirements for the new units?
Yes. Attached units must be at least 300 square feet and no more than 1,200 square feet (or 50 percent of the home’s floor area). Detached units must be between 300 and 600 square feet.
Where can applications be submitted?
Applications can be mailed to the Office of Housing and Community Development at 159 Pantigo Road, East Hampton, NY 11937, or delivered in person to 267 Bluff Road, Amagansett, Monday through Friday, 9 a.m. to 4 p.m. A 24-hour secure drop box is also available at the Amagansett location.
Do you believe this pilot model provides enough incentive for homeowners to take on the responsibilities of being a year-round landlord?