Buying Affordability: Town Prepares To Launch New Housing Deed Restriction Program

A long-delayed year-round and affordable housing deed restriction program first considered by the Affordable Housing Trust (AHT) in 2022 is finally close to accepting applications.

The pilot program would involve the AHT purchasing deed restrictions on island homes to ensure year-round occupancy by tenants who meet the established income levels for affordability. A draft of the program guidelines reviewed at an AHT meeting on Tuesday would require applicants to make less than 240 percent of the area median income, adjusted for household size. It would also cap resale prices on deed-restricted homes.

“The purpose of this program is to provide housing stability, security, and affordability for people living or working year-round on Nantucket,” the guidelines read in part. “Due to Nantucket’s international recognition as a desirable place for owning a seasonal or vacation home, there is not enough housing that is both affordable to and available for purchase or rent by people who make the Town a true community: those who work for the Town and other employers on the island, the small businesses that provide services to year-round residents, seasonal residents, and visitors, and the civic volunteers and retired residents who live here full-time.”

The AHT voted unanimously on Tuesday to approve the program guidelines and authorize staff to work with the finance department to begin accepting applications.

“Staff is excited to announce that this is moving forward after a period of delay,” Housing Director Kristie Ferrentella said. “We were waiting originally after the seasonal communities designation was awarded…and although we're waiting for final guidance from the state, we recommended moving forward with this pilot program to maintain the momentum in the community.”

The Select Board has already approved $2 million in funding for the pilot program.

Housing Nantucket was selected as the monitoring agency for the program and will assist with application intake and review, verifying income qualification, and monitoring and compliance. The Select Board is scheduled to vote on approving the contract with Housing Nantucket at its meeting on July 23rd.

At the same meeting, the AHT discussed a potential future program also aimed at retaining year-round housing on the island called Rooted Renters. Pioneered by Placemate, Rooted Renters is a counterpart to its Lease to Locals program. Where Lease to Locals pays people who are not currently renting their homes year-round to start doing so, Rooted Renters pays people who are already renting year-round to continue doing so. Placemate has already started Rooted Renters programs in other communities and has seen success. At the moment, the AHT is looking into what Rooted Renters would entail and hasn’t authorized a program on-island.