Hamptons Town Sued for Rejecting Affordable Housing Project For Veterans, Disabled People

A nonprofit developer behind an affordable housing project has filed a lawsuit against the town of Southampton for allegedly rejecting the development and discriminating against people with mental illness.

The nonprofit, called Concern, proposed to build a 50-unit affordable housing development to provide homes for veterans and people with mental illness. The homes were planned to be built on a five-acre land. However, the proposal was later rejected.

Now, Concern is claiming the town discriminated against those suffering from mental illnesses in rejecting the development of the units. In the lawsuit, filed in federal court, the nonprofit said the town violated the Fair Housing Act, the Americans with Disabilities Act, Section 504 of the Rehabilitation Act of 1973, and the New York Human Rights Law, per Long Island Business News.

Behind the Affordable Housing Project

The town invited Concern to propose an affordable housing development on the lot behind the Southampton Full Gospel Church. The nonprofit then proposed a 50-unit development, which was accepted by the town board in 2023.

However, the board rejected the required rezoning of the property in June 2024. In court documents, the board issued a "SEQRA Findings Statement contradicting the FEIS and concluding that the project could not move forward because of its environmental impact."

Concern's lawsuit claims the board had "discriminatory views" toward people with mental illnesses. It also claimed the board had a "resistance" against lower-cost housing units in a "high-end resort community."

Southampton's Response

James Burke, the town attorney for Southampton, said he would comment on the lawsuit once they have reviewed the claims. However, he said that the development was rejected due to sewage and wastewater disposal concerns. Furthermore, the board allegedly rejected the project because the affordable housing development could potentially worsen traffic on an already congested county road, as reported by the New York Times.

If the development pushes through, it will charge tenants roughly $300 monthly for one of the 25 apartments with one bedroom. There will also be one- and two-bedroom homes with rents between $1,200 and $1,900. The other five units will be for veterans and people with serious mental illnesses.