Beach Houses Bought By Land Bank To Be Moved To Madaket And Sold As Attainable Homes

The Nantucket Affordable Housing Trust and the Nantucket Land Bank are partnering to move three housing units from the Land Bank’s property at 41 Jefferson Avenue to a vacant lot in Madaket, where they will be sold as attainable housing units for year-round residents.

All three homes, which will have eight bedrooms in total, will be deed-restricted for year-round occupancy at an attainable cost. Two will require a household income at or below 150 percent of Nantucket's area median income, while the third will be capped at 240 percent of area median income. All three will be available for purchase by year-round residents.

“The intention is to create three stand alone housing units for homeownership,” housing director Kristie Ferrantella told the Current.

The Land Bank purchased 41 Jefferson for $26 million in November of 2024. To date, it is the single most expensive property acquisition ever by the Land Bank. Progress has moved slowly at the site over the last year as the Land Bank works to convert the lot into a public beach accessible to people with disabilities. The announcement of the move is the most significant update since the purchase.

The three housing units will be moved to 158 Madaket Road. The Affordable Housing Trust voted unanimously to authorize the purchase of the property for $2 million at a special meeting last Thursday, but the current owner, Franz Peter Arzt, must still sign off on the deal. The Select Board also still needs to approve the purchase.

The vacant lot already has approval for an eight-bedroom septic system. It was recently listed for $2,375,000, and the excess value will be considered a donation.

The project will serve as part of the Affordable Housing Trust’s concerted effort to address what is sometimes referred to as the “missing middle,” or islanders who make too much to qualify for most affordable housing initiatives but still cannot afford housing on Nantucket.

An Affordable Housing Trust press release describes the project as a “creative housing initiative that will advance shared goals of sustainability, land stewardship, and expanded homeownership opportunities for Nantucket’s middle-income households.”

“By prioritizing the reuse of structures, this project reduces demolition waste, lowers embodied carbon impacts, and preserves the island’s built resources, aligning with both organizations’ commitments to environmental responsibility and thoughtful development,” the press release continues. “The collaboration also reflects a shared belief that innovative, cross-agency partnerships are essential to delivering housing solutions that are both economically and environmentally sustainable.”

The exact cost of the move is not currently known, but the Land Bank has committed to paying for it, and will also work with the Affordable Housing Trust to purchase a conservation restriction on the property. A previous estimate put the cost of the move at between $6 and 10 million.

Another structure on the property will be moved to the Land Bank’s property at 159 Hummock Pond Road, where it will be used for employee housing. The Land Bank also has a separate employee housing project a little farther down the road at 166 Hummock Pond Road, next to the Sustainable Nantucket farmstand.

The Land Bank has purchased several properties for employee housing in recent years, and the structure moved to 159 Hummock Pond Road will continue to expand their staff housing portfolio.

The Land Bank continues to receive its revenue from the 2 percent transfer tax on most island real estate transactions that was established in its enabling legislation approved by the state in 1983. Since then, it has acquired more than 3,400 acres on Nantucket, and along with the island’s other private conservation organizations, protected more than 60 percent of the island from further development.

While the Land Bank’s enabling legislation prevents it from directly funding the purchase of affordable housing on island, the Land Bank has indicated that it is permitted to purchase employee housing, and has recently found several creative ways to help combat housing insecurity on Nantucket. As it continues to expand its strategy, moving away from a purely open space conservation approach, collaborations like the deal with the Affordable Housing Trust could become more common.

A two-bay garage currently at 41 Jefferson Avenue will remain on site for storage.