Housing trust outlines use of CPC funds, seeks $5 million ready cash; committee approves five requisitions

The Nantucket Affordable Housing Trust reported to the Community Preservation Committee on April 15 that the first $5,000,000 of a town-approved housing authorization has been spent on land purchases and developments and that the trust is preparing to use a second $5,000,000 authorization as a reserve for projects that require quick action.

Christie, an Affordable Housing Trust representative, told the committee that the first $5,000,000 "had been spent" acquiring vacant parcels including Vesper Lane, Bartlett Road, Orange Street and Amelia Drive, and that the trust has issued a request for proposals for development of those properties. "We've received a bid back... it's about 60 units in total," Christie said, adding the town’s finance office is still reviewing the proposal and an award is targeted by June.

The trust also described other projects and tools it is using to add deed-restricted housing. Christie said Habitat for Humanity’s Waite Drive project is building six homeownership units (two single-family homes on some sites and a duplex on another), that several single-family units are near completion and that the duplex has broken ground. The trust said it has used CPC money and separate trust funds together to subsidize more income-restricted units than would have existed otherwise, and that from 2020–2025 it added 206 dwellings to the town’s Subsidized Housing Inventory (SHI), per a report submitted to the state.

Christie outlined the gap between construction costs and state resale limits for deed-restricted homeownership. She told the committee that recent build costs for some units are "around $600,000 to $700,000 to build, and then they can only sell it for under $300,000," explaining why subsidies remain necessary even when nonprofits build homes.

Committee members raised several implementation and communication issues. Members urged the trust to provide regular public updates — not simply notices in the press — about how CPC and trust funds are being spent and the outcomes achieved. The trust has formed a communications subcommittee and said it will prepare materials ahead of the upcoming town meeting; Christie said the trust will return with quarterly updates.

The trust described strategic land purchases intended for future homeownership development: a two-acre estate planning parcel at 10 Parker Lane and 55 Fairgrounds Road was cited as a long-term site reserved for mixed-income homeownership opportunities. The trust also described exploring year-round deed-restriction tools and adopting guidance being released by the state’s Executive Office of Housing and Livable Communities (EOHLC). Committee members and the trust discussed pilot programs to allow deed restrictions tied to tax abatement or one-time cash incentives, and whether covenant income caps should be adjusted to provide more flexibility for households whose incomes change.

Committee members highlighted limits to local authority and state policy context in several exchanges: Chapter 40B and how SHI calculations treat homeownership units were raised as background constraints, and the trust noted that select-board approval is required for any trust spending over $100,000.

Votes at a glance - Approve agenda — Motion by John (CPC member); second Tim (CPC member). Vote: unanimous approval on roll call. Outcome: approved. - Approve minutes (March 18) — Motion by Eleanor (CPC member); second John. Vote: approved; Tim recorded an abstention. Outcome: approved. - Approve five fund requisitions (listed below) — Motion made from the floor; second Tim. Vote: 5–0 (John, Tim, Eleanor, Tom, Steve recorded as voting yes). Outcome: approved.

The committee signed requisitions listed on the agenda, including payments tied to Interfaith, the Nantucket Housing Authority, the Fair Street Research Library, and an initial payment for conservation/repair work at the Candle Factory that the committee described as a consultant/millwright fee. Committee members discussed that the Candle Factory work had been paused pending a detailed report from a historic millwright; the committee agreed to the initial payment to allow that work to continue after the consultant delivered a multi-page report to the Historic Buildings Commission and the building department.

The Affordable Housing Trust emphasized the rationale for maintaining a ready pool of bonding authority. Christie said the trust typically spends cash first and borrows (issue bonds) later when finance deems it appropriate; keeping the second $5,000,000 available lets the trust respond to time-sensitive opportunities without delaying deals until the next town meeting. The trust reiterated that any trust expenditure over $100,000 requires select-board approval, which the trust described as part of its checks-and-balances approach.

The committee adjourned at 10:49 a.m.

Ending — The trust said it will return with quarterly updates and additional details for town meeting outreach. Committee members encouraged clearer public communications to explain how CPC and trust funds translate into deed-restricted units and who directly benefits.