East Hampton launches $1 million pilot to fund backyard affordable apartments

East Hampton Town announced a $1 million pilot program to encourage homeowners to add affordable accessory dwelling units (ADUs) or backyard cottages. Town officials say the program will provide no‑interest, deferred construction loans of up to $100,000 to as many as 10 homeowners; loans need not be repaid until the property is sold.

Town Supervisor Kathy Burke Gonzalez said the program is designed to meet a growing need for year‑round rental housing for local workers and residents. Under the program, the new units must be rented year‑round at an affordable rate to local workers, residents or family members who meet specified income limits, town officials said on the broadcast.

Applications for the pilot opened immediately and are available through Aug. 21, 2026. Town officials urged early applications because funding is limited. For details and application materials, the broadcast directed viewers to the Town of East Hampton website.

The broadcast did not provide the loan underwriting criteria or the specific income limits for eligibility; interested homeowners should consult the town's program materials for full requirements and restrictions.