Hamptons Town Accused of Illegally Blocking Affordable Housing Plan

The Town of Southampton, an affluent Long Island enclave, violated housing laws by rejecting the project, which would have helped veterans and disabled people, the suit says.

This summer, the Town of Southampton, an affluent enclave on the eastern end of Long Island, rejected a proposal to build a 50-unit affordable housing development for veterans and people with mental illness on a vacant five-acre plot.

The decision was perhaps unsurprising in the Hamptons, where the wealthy vacation in beachside mansions while some of the workers who maintain their yards and pools sleep outside in encampments because they can’t afford to live anywhere else.

But on Wednesday the nonprofit developer behind the proposal sued Southampton in federal court, asserting that the town discriminated against people with mental illness by rejecting the development, in violation of federal housing laws.

“People deserve to live in numerous different communities, and it is our mission to advocate for them and to develop the housing that they need,” said Ralph Fasano, the executive director of the nonprofit, called Concern.

James Burke, town attorney for Southampton, said he would review the lawsuit before commenting. But he added that the town rejected the proposal because of questions about sewage and wastewater disposal and because the development could make traffic worse on a congested county road.

The conflict over the development, known as Liberty Gardens, is a case study of how difficult it can be to build apartments in New York City’s suburbs. In some situations, it can take decades and several court fights to get approval.