A real estate transfer tax created to ease the East End's housing crunch has pulled in more than $100 million since it launched in 2023, with Southampton Town collecting the biggest share of any of the four participating municipalities. The Peconic Bay Community Housing Fund has now brought in $100.74 million total, money that towns are steering toward down-payment help, accessory dwelling units and new construction as local officials seek to prevent further outmigration of nurses, firefighters and teachers.
A Tax Born From a 2022 Referendum
Voters in East Hampton, Southampton, Southold and Shelter Island approved the fund through a 2022 referendum, according to 27east.com. Riverhead did not put the measure to a vote and remains the one East End town outside the program. The fund is financed by a half-percent tax on most real estate deals in the four participating towns, and that charge has applied to contracts that closed after April 1, 2023.
Southampton has taken in more than $57.9 million through July 2026, the largest total among the four towns, according to Behind the Hedges. East Hampton follows with roughly $32.2 million, while Southold has collected more than $8.5 million and Shelter Island about $2.1 million, per the same outlet's tally. Collections have been climbing fast: the fund pulled in more than $21.6 million in the first seven months of 2026 alone.
Where the Money Is Going
Town governments can tap the fund for first-time homebuyer assistance, housing production, building rehabilitation, housing counseling and property acquisition, according to a separate 27east.com report. East Hampton budgeted $600,000 for 2026 toward down-payment and closing-cost assistance, and eligible buyers there can obtain interest-free loans of up to $30,000, the same report notes.
Southampton allocated $1.25 million toward accessory dwelling unit loans and set aside another $1.25 million for down-payment assistance, the report states. The town is also actively working toward creating at least 170 new affordable housing units. Southampton has already used about $15 million from the fund to support projects that produced 76 housing units, with planned developments in Riverside and Quiogue expected to add 52 more.
A Stalled Land Deal in Wainscott
Not every plan has moved smoothly. East Hampton's proposed purchase of a 13-acre Wainscott parcel, which would use $4 million from the fund, remains on hold amid litigation after a neighboring property owner sued the town over the acquisition. As The Real Deal reports, East End towns also continue to face zoning restrictions, and environmentalists can use state reviews to block projects they consider undesirable.
Southampton Town Councilman Tommy John Schiavoni, who released the latest collection figures, said the funds should make life in the region more affordable and prevent further outmigration of nurses, firefighters, teachers and future generations, per The Real Deal. Mike Daly said the need for community housing is becoming greater than the perceived harm of allowing affordable housing, according to the same report.
Year-Over-Year Growth in Both Towns
The year-by-year numbers show steady growth. East Hampton's reported revenues rose from $3.2 million in 2023 to $10.2 million in 2024 and $11.7 million in 2025, with another $7 million collected through July 2026, per 27east.com. The East Hampton Star reported similar figures, noting the town's 2024 haul of $10.23 million improved on the $3.23 million collected in its first year, with more than $11.7 million reported for 2025.
Southampton's collections climbed even faster, from $7.4 million in 2023 to $16.9 million in 2024 and $21.4 million in 2025, with another $12.2 million collected through July 2026, according to 27east.com. Those totals reflect a broader shift in how the East End raises money for growth-related pressures, moving some transfer-tax revenue from land conservation toward housing.
For comparison, the long-running Community Preservation Fund, which taxes property sales for open-space preservation across all five East End towns including Riverhead, brought in $89,393,614.78 in 2026 and $152.77 million in 2025, up from $131.5 million in 2024, according to RiverheadLOCAL. That fund's far larger totals underscore how much smaller and newer the housing fund still is. The housing fund had already surpassed $100 million in collections by September 2026; the four towns had collected a combined $79.12 million during the program's first three years.
