The Hamptons: Home of Real Estate Robin Hoods?

Image Credit: Sotheby's Real Estate 

In past posts, I have discussed the (remote) possibility of government regulation in the form of  takings to protect hurricane-prone coastal land in the Northeast and examined the state of affordable housing in low and mixed-income neighborhoods of post-Katrina New Orleans. Today, the theme of weather's effects on housing turns to an unaffordable housing hotspot- the Atlantic coast of the Hamptons lined with multimillion dollar estates- that, as Charles Lane reports, has taken unique measures to overome the usual obstacles to guarding against beach erosion by placing an annual tax on about 200 beachfront homes in the Town of Southampton's special Beach Erosion Control District. The tax requires these homeowners to shell out extra money to do what the U.S. Army Corps of Engineers currently lacks the funding to do- widen and fortify the public beach that separates these estates from the waves. However, the novelty of this approach lies in the fact that, unlike most property owners who seek exemptions from municipal regulations that restrict their development rights and impose new taxes, a majority of these oceanfront homeowners who decided to take beach nourishment into their own hands (and pocketbooks) proposed this tax. Instead of homeowners protesting that they are shouldering the brunt of the cost for the public benefit, these well-heeled residents are offering to carry the cost for the public benefits (bigger and stronger beaches mean good business for the east end of Long Island's tourism-reliant economy and increased property values for residents of Southampton) that accompany their private interests of not having a mansion taken out to sea with the next big storm.

Of course, this special tax zone is not without its critics. Only 60% of the tax zone's households voted in favor of the tax earlier this month and many of these residents believe that all of the town's residents and businesses should contribute to programs that have widespread public benefits and provide funds to public beaches. Some locals who live outside the zone, though they do not have to pay this tax, agree. Still others question the logic of the Town of Southampton's continual permitting of colossal homes to be built or remodeled in grand fashion on shaky, sandy ground so close to  eroding beaches. The homegrown proposal of beachfront owners to shoulder the costs of the public benefit of coastal fortification is likely a blip in contrast to the long list of property owners who would view such policies as unfair and skeptical policymakers who worry about the precedent of allowing a local government to neglect necessary resiliency measures in the face of climate change. Despite this likely reality, it presents a different take on the funding and regulation hurdles that often plague controversial housing policies in communities, both rich and poor, with perennially tight belts.