The Peconic Bay Community Preservation Fund, which has raised more than $2.26 billion for land preservation in the five East End towns since the fund’s inception in 1999, took in $152.77 million in 2025, Assembly Member Tommy John Schiavoni reported this week. That’s up from $131.5 million in 2024.

Riverhead Town took in $7.03 million in CPF revenues last year, according to data provided by Schiavoni. Over the life of the program, Riverhead has taken in more than $110 million in CPF revenues.

The Community Preservation Fund derives revenues from a 2% transfer tax on real estate sales in the five East End towns. The real estate transfer tax in the region was created to fund land preservation purchases in each town. It has protected more than 10,000 acres of land. In 2015, the CPF was extended to 2050 and amended to allow up to 20% of CPF revenues to be expended on eligible water quality improvement projects, such as wastewater treatment improvement and pollution prevention projects and aquatic habitat restoration projects. Voters approved the changes in 2016.

In the early 2000s, Riverhead borrowed $70 million against future CPF revenues, but the lasting real estate market struggles triggered by the recession of 2008-2009 tanked Riverhead’s annual CPF revenues. Thanks to state legislation passed in 2016, Riverhead was able to refund its CPF debt, extending the repayment to 2030. As of Dec. 31, 2024, CPF debt outstanding was $12.29 million, according to independent outside auditors. The town is on track to pay the debt off on schedule, but it will still pay nearly $3 million in debt service (principal and interest) this year and next; the annual debt service will dip below $2 million in 2028. The debt service payments continue to take a significant bite out of annual CPF revenues.

Riverhead was the only town on the East End not to adopt an additional half-percent transfer tax in 2022, when state law was amended to allow the additional tax for a Community Housing Fund beginning in 2023. The Community Housing Fund can be used for affordable housing initiatives in the town imposing the tax.Riverhead officials decided againstseeking voter approval for the housing fund because of existing affordable housing opportunities offered within the town.

Total revenues collected in the four East End towns for the Peconic Bay Community Housing Fund were $79.12 million since the inception of the program in 2023.

Southold took in $6.7 million in CHF revenues since 2023, Shelter Island $1.5 million, Southampton $45.7 million and East Hampton $25.2 million.

The CHF programs are administered separately within each of the participating towns. The towns can use the CHF to provide financial assistance to first-time home buyers (not to exceed 50% of purchase price), to produce housing for sale or rent, to rehabilitate existing buildings for housing, and to acquire real property for the purpose of producing housing for sale or rent, Schiavoni said. The CHF revenues can also be used for housing counseling.

“The Community Housing Fund is necessary to address the severe housing shortage that we face here on Eastern Long Island,” Schiavoni said. “I commend each of the participating towns for instituting programs to address the housing challenge. The CHF is the local funding source critical to acquire grants from New York State which would augment programs being developed by the towns.”

The survival of local journalism depends on your support.We are a small family-owned operation. You rely on us to stay informed, and we depend on you to make our work possible. Just a few dollars can help us continue to bring this important service to our community.Support RiverheadLOCAL today.

Source: RiverheadLOCAL