Trust extends Lease to Locals renewals: second-year 50% and third-year 25% payments approved

At the July 15 meeting the Affordable Housing Trust approved extending payments for renewals under the town—s Lease to Locals program, adopting a step-down incentive structure to preserve year-round rentals. Under the approved motion, properties that joined in the prior year will receive a second-year payment at 50% of the original grant amount; eligible properties entering a third year will receive a 25% payment. Staff said the extension draws on rollover funding from a prior grant and requires no additional appropriation at this time. Colin, a consultant working with staff, presented survey results and projections for retention and costs. He said the team reached 14 of 15 property owners the staff contacted about a potential third-year payment. The staff—s projection for the third-year payment averaged about $4,500 per unit using a 65% expected retention rate, but staff cautioned the figure could change depending on actual renewals. Colin summarized a recommended step-down approach that the trust adopted: year 1-to-year 2 renewal at 50% and year 2-to-year 3 renewal at 25%, with a 5% rent increase cap allowed at renewal. Staff said requests to raise rents above 5% would be considered on a case-by-case basis with documentation and review by Housing Nantucket and Housing Department staff. Trust members debated the rent-cap policy. Penny Dye said she worries the program primarily benefits owners and asked who would judge requests for increases above the 5% cap. Staff suggested requests would be reviewed by Housing Nantucket and Housing Department staff and could be brought to the trust if necessary. Brooke Moore said limited flexibility could prevent displacement in individual cases; Penny and others emphasized careful, case-by-case review. The motion to extend the program and make the 50%/25% payments was moved by Brooke Moore, seconded by Abby De Molina, and approved by roll call vote. Staff said the extension will run through the end of the year and that any program continuation or budget for the next year would be part of an in-house AHT RFP and budget process.