Riverhead considers $280K boost for first-time homebuyers
Riverhead officials are considering putting nearly $300,000 toward helping first-time homebuyers as the affordability crisis continues to grip the East End.
Under the proposal presented at the Town Board’s July 16 work session, 10 eligible buyers would each receive $28,050 toward a down payment or closing costs, for a total town contribution of $280,500.
The Riverhead Town Board expressed interest in partnering with Suffolk County’s Down Payment Assistance Program (DPAP) and providing the additional aid through zero-interest deferred loans to approved applicants looking to purchase their first homes.
The town would use funding obtained through the Long Island Workforce Housing Act and distribute it among applicants approved for the county program.
The financial assistance would be limited to individuals and families looking to purchase a home in Riverhead, town officials said.
The Suffolk County Office of Community Development confirmed to the Riverhead News-Review on Monday that it expects applications for the county program to reopen sometime this fall. Suffolk County vets all applications.
DPAP, created by Suffolk County in 1993, is funded by the U.S. Department of Housing and Urban Development, or HUD. It helps eligible first-time homebuyers purchase single-family homes within the Suffolk County Consortium, which includes Riverhead, East Hampton, Huntington, Smithtown, Southampton, Southold and Shelter Island.
Liz Keller of Riverhead’s Community Development Agency said the county now offers up to $50,000 in zero-interest deferred loans to assist with the down payment on the purchase of an owner-occupied, single-family residence.
There are household-size income limits, she said. Applicants must come from low- to moderate-income households, according to the 2024 program guidelines provided on the Suffolk County DPAP website.
Applicant households must have a gross annual income that does not exceed 80% of the area median income as determined by HUD. For example, for a household of four people, the maximum allowable income is $124,950.
The estimated median family income limit for Suffolk County this year is $164,300, according to HUD.
Ms. Keller also said Suffolk County recently increased the maximum purchase price of a house to $646,000. The previous maximum appraised value of an existing or newly constructed home was $551,000.
“That’s good because previously it had been lower and it was very difficult to find properties that fell within the allowable purchase price,” Ms. Keller said at the July 16 work session.
For more information, interested applicants can visit the Suffolk County Down Payment Assistance Program website at scdownpayment.com. Riverhead residents can also call Ms. Keller directly at 631-727-3200 ext. 239 or housing inspector Dan Thompson at ext. 237.
