Chelsea Council weighs $2 million purchase of 55 Hertz Street for affordable-housing pilot
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Summary
Councilors discussed a $2 million appropriation from overlay reserves to buy a six-unit property in receivership at 55 Hertz Street as a pilot municipal affordable-housing program. The City Manager said purchase would prevent auction sale and allow rotational long-term units; council referred financing to Ways & Means.
Chelsea City Council on Monday discussed a proposal to appropriate $2,000,000 from the city’s overlay reserve to purchase a six-unit property at 55 Hertz Street as a pilot for municipally managed, deeply affordable housing.
Clerk materials introduced the order explaining that the property is in receivership and that, if not acquired by the city, it is likely to be sold at auction to the highest bidder. The City Manager told the council the city faces a choice: “55 was put in receivership, because it was a property that was in in really poor condition,” and if the city does not step in the receiver will move to auction the property.
Proponents said a city purchase would allow Chelsea to hold units for rotating families in need rather than let formerly affordable homes be priced out on the open market. “I think the benefit here is for the people who actually live in Chelsea,” Councilor Robinson said, adding the city would have more control over selection and could prioritize veterans and families as occupants.
Councilors pressed for fiscal rigor and alignment with existing local programs. Councilor De Jesus urged a cost analysis and for local nonprofit partners and workforce-development providers to be involved so that the units serve as short-term transitional housing rather than indefinite placements.
The City Manager noted prior pandemic-era rental assistance spending and cautioned that the pilot would not eliminate the need for other eviction-prevention programs. He described the proposal as a “pilot program” that could be reversed or sold if it did not meet objectives.
Because the item involves an appropriation and program design, councilors moved the funding and program details to the Ways & Means Committee for review. The council also introduced a companion order to establish a departmental revolving fund to accept rental income and pay property expenses if the acquisition proceeds.
Next steps: Ways & Means will review the appropriation, program design, and any needed oversight before the full council votes on the appropriation.
