Falmouth Select Board rescinds $3.4M affordable-housing award after seller signals no pathway

The Falmouth Select Board voted June 8 to rescind a prior financial award from the town’s Affordable Housing Fund to Bushwood 545 LLC for a proposed workforce-housing project at 545 Maine. The vote followed months of public discussion, repeated communications from the property seller signaling reluctance to proceed under terms supported by the town, and extensive public comment.

Select Board members stressed they remain committed to workforce housing as a town priority but said the rescission was prompted by the seller’s written statements that closed available options for the local nonprofit buyer and would prevent the town from effectively supporting the transaction. "We have received clear language from the seller that we cannot expect a relationship in which Mr. Golasso is involved," Select Board member said during the meeting.

Michael Glassel, managing member of Bushwood 545 LLC and the project proponent, urged the board to allow more time and negotiation. "For someone who spent five years on this project and $500,000 of our own money, that could have more than one minute," Glassel said, arguing the town should not withdraw support while sales and negotiation paths remained open.

Supporters of the project — including Farm Falmouth and local residents — called the development an important workforce-housing opportunity and warned that rescinding funds would undercut trust with future partners and jeopardize a project that has already attracted state awards and investment. "Rescinding the funding risks damaging the town’s credibility with future housing partners, lenders and state agencies," said a spokesperson for Farm Falmouth.

Board members who voted to rescind said the town has limited available Affordable Housing Fund resources and that leaving the funds encumbered for a project that appears blocked prevents the town from supporting other feasible projects. "We have tied up $3.4 million that currently cannot be considered for other projects," one board member said during debate.

The motion to rescind the financial award passed on a board vote. The board agreed to restore the funds to the housing fund and to continue pursuing workforce-housing priorities through other avenues and potential solicitations.

Provenance: The matter returned to the agenda after recent communications from the seller; proponents, neighbors and several board members spoke during the June 8 public meeting, and the board voted to rescind the award.