Sparks Avenue Development To Increase Town's Subsidized Housing Inventory List

The Nantucket Select Board voted unanimously Wednesday to execute an application that would see all 32 homes in the so-called “New Downtown” development on Sparks Avenue added to the island’s Subsidized Housing Inventory list.

Eight of the 32 units in the development are restricted to 80 percent of the area median income, and all 32 units are eligible for inclusion on the Subsidized Housing Inventory (SHI) list. The SHI list determines whether Nantucket can remain in what is known as “safe harbor” from housing developments covered by Chapter 40B, which permits housing under flexible rules if a sufficient number of units in a development have long-term affordability restrictions.

To remain in safe harbor, which grants Nantucket far greater leeway over the often highly controversial 40B developments, the island needs to continue making substantial progress towards having 10 percent of its housing stock be affordable. Despite considerable efforts from the town and local housing organizations, only around 6.6 percent of the town’s housing currently qualifies—but the new Sparks Avenue development could singlehandedly increase that number to 7.1 percent.

In 2019, Nantucket had fewer than 150 subsidized housing units. Now, that number is 405, and it is projected to reach 590 in 2026.

“I feel that we've been very focused…to continue to move along projects, and we haven't stopped to really showcase what we've done and how many heads in beds we have created,” Nantucket Housing Director Kristie Ferrentella said.

Ferrentella outlined several affordable housing projects the Town is working on during a presentation to the Select Board on Wednesday, including vacant land development, closing cost assistance, and covenant formation assistance.

“This is amazing, and it's not only what has been accomplished, but there are so many new ideas, so many new programs, tools in the toolbox,” Select Board member Brooke Mohr said. “Every time we talk about housing, I say the same thing. It's just amazing to me how much progress we've made, and I'm really proud of us as a community for focusing on making sure our year-round residents have safe, stable, and attainable housing.”

Ferrentella also presented on an upcoming deed restriction program that would see the Town paying homeowners for year-round, affordable housing deed restrictions on their homes.

“This has been a work in progress and a labor of love over the last couple of years,” Ferrentella said. “Stay tuned, because that will be released shortly.”

The project on Sparks Avenue, developed by ACK Mid Island LLC, is just one part of the broader efforts to create affordable housing on the island.

ACK Mid Island is in talks with the Affordable Housing Trust (AHT) for $3,725,000 in grant or loan funding and is also seeking special local preference for 70 percent of the 32 units. Special local preference would allow Nantucket residents and workers to enter into a lottery for the units before anyone else could apply.

The Select Board and the AHT both approved a letter of support to the Executive Office of Housing and Livable Communities for special local preference.

“As you are probably aware, Nantucket has a critical need for housing at all levels of affordability,” the letter reads in part. “Although Massachusetts has several highly affluent communities that also struggle with severe affordability barriers, Nantucket differs from all of them because of our unique location. Situated 30 miles from the mainland, Nantucket has no neighboring communities with which to share employment, labor force, and housing opportunities. Travel to and from the island is only possible by boat or plane. People who work on Nantucket must live here, and when they cannot find safe, decent, affordable housing that meets the needs of their families, they eventually leave. The workforce cannot find adequate, affordable housing within our borders because Nantucket's housing market is driven almost exclusively by the seasonal/vacation market.”

After years of regulatory hearings, the development, which will be partially built on the land formerly occupied by The Downyflake restaurant, is moving closer to becoming a reality. All units will require 12-month leases. Plans for the development also call for a restaurant and an eight-lane bowling alley.

Two of the men behind the project are Chris Fiumara and Daniel Najarian, the co-founders of the Boston-based Crowd Lending Inc., a commercial real estate lender. Property records show their partners include Jared Gerstenblatt and Christopher Grimaldi, managing partners of the New York brokerage firm Chimera Securities. Together, they spent $10.75 million to purchase the Downyflake property and three surrounding parcels on the west side of Sparks Avenue.

The development was first proposed in 2021, and the existing buildings on the site were demolished early this year.