Dan's Papers - October 10, 2008

Perhaps in the last decade more work has been done on existing homes throughout America than in any other period of time in this country's history. With equity loans, many homeowners went about improving one of their biggest investments, their homes. Out here on the East End, many watched their homes double in value and therefore seemed justified in putting in new wings, garages, state of the art bathrooms and expanded kitchens. No expenses were spared, with homeowners believing they were simply increasing the value of their investment. Huge blue tarps covering homes were seen on every block, not only on the East End but across America. Contractors and their employees were a common sight in Hamptons' towns, working on almost every block.

A few years back, it seemed impossible to find competent contractors to do the work. But in a conversation with Town of East Hampton Chief Building Inspector Donald T Sharkey, he noted that requests for new building permits are "noticeably down." (A building permit is needed for all construction, major repairs and work done on existing homes.) Sharkey, on the job for over 22 years, has his inspectors going out and visiting each job site a minimum of seven times a year to make sure the work being done is what was applied for and is safe. Even with the financial problems going on down on Wall Street, a quick poll of his inspectors noted only one started job has been suspended for lack of funds, and that one is in Wainscott. But despite reports from the building department, word on the street is that work has slowed. Tim Sharp, a local contractor who specializes in "green bathrooms," as well as other "green" renovations, has seen the slow down of work done on homes and said it causing a "situation for foreign workers," causing many to return home due to the lack of work.

Sharkey said that he and his inspectors have not seen anything "drastic like" with projects stopping because of lack of funds to complete permitted work. He acknowledged that his department does not have requirements to prove the ability to finance the work being requested. Permit requests are usually made by either the owner or contractor, and no financial disclosure is involved. And Sharkey said the rate of requests for permit extensions, which cost a minimum of $1,500, is about the same as always.

But often, neighbors are more anxious than homeowners or developers for the work to be completed. Some homeowners looking to sell their properties are concerned that partially built structures might languish on their streets, creating eyesores that may cause even further devaluation of their investment, and raise eyebrows of potential buyers. But that doesn't seem to be a looming issue - for now. And even if it were, there is little to be done about it as long as building permits are up to date. The only time the town would step in is if a structure became unsafe. Sharkey recalled leveling only two homes over the last 22 years for safety reasons, saying, "The elements, mostly water from rain, had made the abandoned structures unsafe." He made a point of saying no one was living in either home, and they truly needed to be leveled.

Sharkey does not see a huge trend of unfinished home construction eyesores on the immediate horizon. That's good news for homeowners in East Hampton. However, there are large construction projects that may be affected by the present crisis in sub-prime mortgages causing foreclosures throughout the land. Only time will tell how the present housing situation will affect work on projects like the Bulova Watch Case Factory site in Sag Harbor - the mother of them all when it comes to the eyesore of stalled construction.