Town Meeting Sends Mixed Signals On Housing

CHATHAM – Voters at Monday’s annual town meeting were supportive of locally sponsored affordable housing projects but refused to provide funds for one of two housing initiatives for-profit developer Pennrose is pursuing.

 Tension over affordable housing was palpable at the session, with Pennrose serving as a vector for opposition to large-scale housing developments that some said were not suitable for the town.

 But voters were amenable to a planned homeownership project being developed by the local nonprofit Housing Assistance Corp., agreeing to appropriate nearly $3 million for the 14 units on town-owned land on Stepping Stones Road.

 The zoning board of appeals has granted Pennrose — a national developer that has built affordable housing projects in Eastham and Orleans and is also developing a project in Harwich — a comprehensive permit for a 48-unit affordable apartment complex at the former Buckley property at 1533 Main St. that will be known as “Buckley Gardens.” The company recently introduced new plans for a 42-unit affordable apartment project on Meetinghouse Road (see separate story). A comprehensive permit for that development remains pending before the zoning board.

 Pennrose requested Community Preservation Act (CPA) funds for both projects, asserting that the town funding would help show local support when the company sought state and federal tax credits to help finance the developments. Community preservation committee chair Gary Toenniessen said the funds would also allow the developer to upgrade elements of the projects such as playground equipment. But voters were skeptical, since both developments are on town-owned property and the company stands to make a profit managing the rental units.

 Voters turned down the request for $100,001 in CPA funds for the Meetinghouse Road housing. 

Resident Judy Patterson said Pennrose has been “less than forthcoming” at public hearings and doesn’t deserve taxpayer money. Asking for town funds is “absolutely outrageous” given the changes to the project, added Gloria Hicks, an abutter to the Meetinghouse Road site.

 Several voters questioned Pennrose’s for-profit status and the profits it would make from the development. Housing and sustainability director Gloria McPherson said that under the state comprehensive permit process, profits are capped, whether a company is nonprofit or for-profit.

 “So they’re not raking in the dough,” she said. “It’s not a huge money-making project.”

 When the town transfers the property to Pennrose, the company will pay the town $1.2 million, said Michael Schell. Together with $400,000 in CPA funds sought by Pennrose for the Buckley property, the town will have invested $1.9 million for 90 rental units if the Meetinghouse Road funding is approved, he said.

 “I think that’s a pretty good investment,” he said.

 “This money will go to support our housing,” said community housing partnership chair Karolyn McClelland. “It’s not about a developer exploiting the situation. The developer is a vehicle to build the housing. Ultimately it’s going to be our year-round community that will be living there and we need to do what we can to support them.”

 Voters didn’t agree, defeating the Meetinghouse Road funding 173-196. However, voters approved the $400,000 for the Buckley property 197-169.

 Those funds would serve the same purpose as the Meetinghouse Road request, Toenniessen said. He added that there are strict controls over how CPA funds can be spent.

 Glass called the funds “a gift” to Pennrose and said if the state denies tax credits for the projects, the town should lobby its state representatives. Brian Phillips urged voters to defeat the request, saying Pennrose is “already going to make enough money” from the projects.

 But Leslie Schneeberger said Pennrose being a for-profit company is not reason enough to deny funding. “It’s not necessarily a dirty word to be a for-profit, if you can make more housing for people,” she said. Stephen Buckley, whose family sold the land to the town for affordable housing, said the additional funding would help make the project better for the people who will be living there. McClelland said it was “heartbreaking to see my community recoil from affordable housing that we’ve spent years and years advocating for.” Voting against the funding will not hurt Pennrose but could hurt those who need housing by unnecessarily delaying construction, she added.

 Select board vice chair Jeffrey Dykens reminded voters that two years ago, town meeting approved CPC funds for a Pennrose housing project in Orleans. That was recognition that the housing crisis is regional, he said. “Why would we not support it in Chatham?” he said.

 Pennrose requests for CPC funds for both projects from Orleans and Harwich were turned down. After turning down the Meetinghouse Road money, Chatham voters approved the funds for the Buckley property.

 Voters approved a total of $2.8 million for the housing proposed for Stepping Stones Road. The project doesn’t qualify for state or federal funding, said McPherson. Plans call for 75 percent of the 14 units to be at the attainable level, for which voters approved $2.1 million from the town’s special revenue fund for attainable housing, funded through the short-term rental tax. Another $750,000 in CPA funds will help finance 25 percent of the units which will fall under more restrictive affordable housing income criteria. Through the town’s seasonal communities designation, the town can deed restrict the units to year-round residents, she added.

 Voters also agree to accept property on George Ryder Road bequeathed to the town for affordable housing by the late Patricia Ford. A lease to locals program, which provides incentives for landlords to rent to year-round residents, was also approved. McPherson said officials anticipate about 20 landlords participating in the first year of the program based on experiences in other Cape towns.

 Several articles aimed at helping residents who fall behind on property tax payments by lowering interest rates were approved. Finally, voters accepted a state option to accept a property tax exemption for year-round rentals that meet affordable housing income guidelines. The petition article submitted by Phillips passed 93-79.