Residents Take Village Of West Hampton Dunes To Task Over Propane Tanks Buried Near Homes

WEST HAMPTON DUNES, N.Y. (CBSNewYork) -- A village of the East End of Long Island is the subject of a state investigation after accusations of inside deals – and rows of multimillion-dollar homes could be in jeopardy.

As CBS2's Jennifer McLogan reported Monday, it all stems from propane tanks buried too close to the houses.

"It could become an explosive powder keg," said West Hampton Dunes homeowner Maria Sausa.

The potentially explosive situation sits along Dune Road – a street lined with multimillion-dollar beachfront homes in the enclave of West Hampton Dunes. The community was formed after the destructive nor'easter of December 1992.

Liquid propane tanks -- used for cooking and heating – are buried below homes and in some cases attached above ground. As many as 60 of the 300 houses in West Hampton Dunes may dangerously violate state code, McLogan reported.

But for some reason, local officials allegedly allowed it.

"You are talking, like, about almost a missile explosion under a residential community," Sausa said. "Somebody has to open up their eyes to this, and say, 'No, this has to stop,' because now, it's a life-threatening issue.'"

Sausa and her family were in the midst of constructing a home when the engineers they hired informed them that their builder had violated state safety regulations. It mandates tanks up to 2,000 gallons must be 10 feet from a home or property line.

Sausa called the Department of State, which then met with local officials, warning that "it would be in the village's best interest to address this situation as soon as possible, before something catastrophic happens."

The mayor sent letters directing residents to move the tanks at their own expense – up to $5,000 – or seek a variance. Sausa and some of her neighbors told CBS2 the village should be responsible, since it signed off on the illegal tanks.

Now, the state and county are involved in the probe. Part of the scrutiny appears to focus on the village administration – packed with local real estate agents and developers – allegedly turning a blind eye.

"I certainly feel that this is part of a bigger corruption scheme -- too many people involved, too many bodies -- and it is impossible where realtors, builders, developers are all part of internal government," Sausa said.

CBS2 has also learned that in order to meet state code requirements for high winds, homes in West Hampton Dunes cannot exceed three stories in height. Many were approved for four stories, with homeowners unaware.

Sausa has now halted construction.

"We need someone to come in and justify what this village government is doing," Sausa said.

CBS2's calls to the village were not returned, and emails requesting interviews were not granted.

The village did acknowledge that it has received subpoenas in the investigations, but denied any wrongdoing.