The Nantucket Affordable Housing Trust voted Jan. 6 to authorize the chair or vice chair to sign a memorandum of understanding, a grant‑and‑loan agreement, a promissory note and a mortgage security agreement to support the Sparks Avenue affordable housing development.

Vicky Marsh, staff, told the board "the trust is going to be awarding a grant and a loan, to the developer in equal amounts of $1,857,000." The package is structured so the grant is disbursed first and loan funds follow as reimbursement on submitted invoices.

The developer plans to build 32 rental units at 18, 18A, 20, 22, 24 and 26 Sparks Avenue. Under the Trust's participation, eight of those units would be restricted at 80% of area median income (AMI); in exchange, all 32 units would count on the town's subsidized housing inventory (SHI) list.

Marsh summarized material loan terms: the Trust's note and mortgage run 30 years, there is no prepayment penalty, and the Trust's loan will be subordinate to the developer's first mortgage. Marsh said the Trust had not yet received the first‑mortgage documents and asked that any lender comments be resolved by town council: "I have not yet received comments back from the First Mortgage Lenders Council," she said, and asked members to approve the authorization provided any lender revisions are addressed by town council.

Brian Torbett clarified interest‑rate options for the Trust financing: the mortgage portion would carry the town's net interest cost plus 2%, while a converted portion of the grant (if recapitalized or transferred in majority) could convert to a 15‑year mortgage at the town's net interest cost plus 1.5%.

Board members voted by roll call to approve the authorization. The motion recorded Forrest Aye, Abby Aye, Mary Aye, Brooke Aye and the acting chair Aye. The authorization is subject to final approval and any necessary document revisions by town council and to the Trust's receipt of any required first‑mortgage documentation.

Building permits for the project are expected to be issued this week; once permits are issued the units will be submitted to the Executive Office of Housing and Livable Communities (EOHLC) for inclusion on the SHI list, which staff said will further increase Nantucket's SHI percentage.

Next steps: the developer proceeds to close its financing; town council review and any lender comments will be resolved before final signature and disbursement.