Notwithstanding the provisions of Chapter 133 of the Town Code, a property owner may rent a structure or part of a structure and make such property alterations as are necessary to facilitate this, provided that the owner has designated such rental as community housing and has a special community housing license (SCHL) pursuant to this chapter.
A. 
Any person or entity applying for a SCHL under this chapter must be the owner of the real property that is the subject of the SCHL application. All owners of record must sign the application.
B. 
Applications for SCHLs shall be available from the CHB Clerk and shall require the following information and attachments:
(1) 
A plan drawn to scale indicating the square footage of the parcel and the locations of all structures, walkways, driveways, parking areas, and landscaping features and any proposed exterior alterations.
(2) 
A description of the interior of each residential building on the parcel and any proposed alterations (i.e., number of bedrooms, bathrooms, kitchens and other cooking facilities, etc.).
(3) 
A floor plan with total square footage of each unit and dimensions of each room.
(4) 
The proposed number of occupants for each unit.
(5) 
The proposed rent.
(6) 
A copy of the deed evidencing the applicant's ownership of the property.
C. 
The premises shall be subject to the inspection of the Building Inspector every two years for compliance with safety codes.
D. 
Special community housing licenses shall contain the following conditions:
(1) 
The owner must agree to select tenants for that part of the building dedicated to community housing from the Town's housing registry in accordance with the priorities established in this chapter. Notwithstanding the priorities established in said section, family members of the applicant by blood or marriage who meet the eligibility requirements of this chapter shall have first priority.
(2) 
The owner must agree to charge rent that is no more than the fair market rent limit for the unit size specified by the Suffolk County Affordable Housing Opportunities Program in effect at the time of the rental.
(3) 
The owner shall execute such agreements, leases or other legal instruments which, upon recommendation of the Town Attorney, will ensure success in helping to meet identified community housing needs. A copy of the fully executed lease and all extensions must be submitted to the CHB within 15 days of execution by all parties.
E. 
Upon approval of the SCHL application by the CHB as provided for in this chapter, the CHB Clerk shall issue a five-year license.
F. 
There shall be no filing fee required to apply for a SCHL or a building permit where structural alteration of a building is being done pursuant to an approved SCHL.
G. 
Acceptance of a SCHL shall constitute an agreement that the licensee will hold the Town of Shelter Island and its authorized representatives harmless for any liability in connection with the rental of his property; nor shall the Town be responsible for any loss or damage to the property, structures or personal property thereon.
H. 
A licensee must notify the CHB Clerk of any change in the rental status of the property within 14 days of the change. In order to maintain the SCHL, the licensee must agree to select another tenant from the housing registry.
A. 
A SCHL may be renewed for an additional five-year term in accordance with the following:
(1) 
The CHB Clerk shall notify the licensee by first-class mail at least three months prior to the expiration date of a valid SCHL of the need to renew said license prior to its expiration date, per an enclosed blank SCHL application form.
(2) 
The licensee shall submit the application form to the CHB Clerk with any updates to the documentation submitted with the initial application, a description of the details which remain the same, and shall include a copy of the current lease.
(3) 
The licensee shall submit an attestation of compliance with the requirements of the SCHL and this chapter.
B. 
The CHB Clerk shall pass the updated application to the CHB for a review as to whether the property continues to be eligible for a SCHL. The CHB will make the renewal determination.
C. 
Upon approval of the SCHL renewal application by the CHB as provided for in this chapter, the CHB Clerk shall issue a five-year SCHL renewal.
A. 
SCHLs may be revoked for any of the following reasons:
(1) 
There is a change in ownership of the property.
(2) 
If the licensee fails to notify the CHB Clerk of a change in rental status within the prescribed time.
(3) 
If the licensee rents the property to tenants who are not on the housing registry when there are eligible candidates in the registry.
(4) 
If the CHB determines that the owner has failed to comply with the requirements herein.
B. 
SCHLs may be revoked after a notice of revocation is sent by certified mail to the property owner at the address shown on the Town Assessor's tax records. The CHB shall be in charge of enforcement. Notice of revocation shall give the property owner 15 days' notice of the intent to revoke the SCHL, and offer a hearing on the revocation in front of the CHB. After 15 days and after the hearing is requested, the CHB may adopt a resolution of SCHL revocation stating the reasons for revocation and file it with the CHB Clerk.
C. 
If a SCHL is revoked, written notice to return the property to full compliance with Chapter 133, Zoning, of the Town Code will be sent to the owner giving 30 days' notice to comply. If the owner does not comply within that time, the owner shall be in violation of the Town Zoning Code.
A. 
SCHLs may be issued for property located in all zones except the Near Shore and Peninsular Overlay District.
B. 
Alterations to an existing structure shall not change the existing footprint. In order to make alterations to use an existing structure for this purpose, the owner shall apply for a building permit from the Town Building Department in the manner of all other applications for building permits in addition to applying for a SCHL.
C. 
SCHLs shall be granted only for existing structures and proposed alterations to existing structures that comply with the requirements of all applicable federal, state, county and local building, health, fire, electrical and plumbing codes.
D. 
Off-street parking shall be provided for all vehicles regularly associated with the premises.
E. 
To the extent practicable, units reserved for community housing will meet or exceed the following minimum dwelling unit size to accommodate household or family size:
Household or Family Size
Minimum Dwelling Unit Size
1
Efficiency unit
2
Efficiency unit
3
One bedroom
4 to 5
Two bedrooms
6
Three bedrooms
F. 
In the event that a tenant vacates a dwelling covered under a SCHL and there are no eligible candidates in the housing registry, the owner may rent the premises on the open market for a period of up to one year while maintaining the SCHL.
G. 
A maximum of eight new applications for a SCHL will be considered in any calendar year.
A violation of this chapter is an offense and, pursuant to § 268 of the Town Law, shall be punishable as follows:
A. 
For a first conviction: a fine not less than the sum of $50 nor more than $350 or by imprisonment for not more than six months, or by both such fine and imprisonment.
B. 
For a second conviction: by a fine of not less than $350 nor more than $700 or imprisonment for a period not to exceed six months, or by both such fine and imprisonment.
C. 
For a third or subsequent conviction: by a fine of not less than $700 nor more than $1,000 or by imprisonment not to exceed six months, or both such fine and imprisonment.
D. 
Each day on which such violation shall occur shall constitute a separate, additional offense.