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Board explores hybrid sale, rental options and developer partnerships for 16-unit Paul O'Brien project
Summary
With plans for 16 rental units approved but financing short, the New Shoreham Housing Board discussed phasing, redesign, a hybrid sale/rental model and outreach to affordable‑housing developers; a developer call was proposed for Nov. 21.
The New Shoreham Housing Board said an approved design for 16 rental units at the Paul O'Brien site cannot be built under current funding and the board discussed alternate financing and partnership approaches.
"We just don't have the money," said Unidentified Speaker (S1), describing the gap between the board’s borrowing capacity and the project's estimated cost. S1 told members the board typically saves annual income, leverages it to acquire property and borrows against it; seasonal rental fees generate roughly $200,000 a year but the board’s borrowing authority (about $2 million) would still leave a substantial shortfall on an estimated $7 million project.
Board members weighed options including phasing construction, scaling back design, or adopting a hybrid for‑sale and rental model to improve feasibility. Several members suggested engaging a private company that builds affordable housing on a for‑profit but mission‑oriented basis; such companies can design, build, manage and recoup payment over time through rents and financing partnerships.
S1 said one firm the board researched could not do smaller projects under about 34 units, but the board has identified smaller firms and local developers that might be able to take on a modest‑scale project. The board agreed to invite potential developer partners to a conference call; S1 said a developer call was suggested for Nov. 21 and asked who could attend.
Why it matters: the outcome will determine whether the board pursues publicly run rental housing, sells units to finance future work, or partners with an outside manager/developer. Members flagged the need to explain any private partnership to the community so homeowners do not view the arrangement as profiteering from affordable housing.
Next steps: staff will schedule outreach calls with developer candidates, circulate materials about different financing models, and invite a local nonprofit leader to brief the board at a future meeting.
