Developers Sought For Affordable Housing At 127 Old Harbor Rd.

CHATHAM – Development of affordable and attainable housing at the town-owned property at 127 Old Harbor Rd. is one step closer.

 The select board last week voted to put out a request for developers to submit proposals for the project calling for four to six home ownership units in two to three buildings. Twenty-five percent of the units will be classified as affordable, restricted to those earning up to 80 percent of the area median income (AMI), and the remainder will be so-called attainable housing limited to those making between 90 and 200 percent of AMI. Having 25 percent of the units affordable will allow the project to qualify for the Chapter 40B comprehensive permit process, said Housing and Sustainability Director Gloria McPherson.

 Board members asked that provisions be included to ensure that school department employees are given a preference for the attainable housing, which is allowed under the state seasonal communities designation. 

 Because the property was originally donated to the town by Marion Nickerson Ellis for use as a playground, significant debate among select board members and the public has focused on use of the property for housing. Town meeting endorsed that approach, and two town attorneys have ruled that the deed restriction in the 1971 donation has lapsed. A playground associated with the adjacent elementary school contains a playground on a portion of the former Ellis property.

 Select board members, however, have asserted that maintaining some connection between the property and the schools would be appropriate given Mrs. Ellis’ original intent. It may not be legally required, but board member Stuart Smith said morally the town should do all it can to honor her wishes.

 “I don’t know who would give us another piece of property if we don’t,” he said. Chair Jeffrey Dykens agreed that if a lottery is held to determine purchasers, school department employees should receive a higher ranking than non-school workers.

 McPherson said the goal of giving school department employees preference in the housing is covered by the request for proposal’s inclusion of the seasonal communities language. Details, however, will be worked out in a land disposition agreement that is entered into between the town and the chosen developer.

 Board members also wanted to ensure that the solicitation for proposals stressed renovation or restoration of the single-family home that currently sits on the property. The town has been “horrible stewards of the building,” said board member Cory Metters. The board asked that renovations and restoration of the building be encouraged.

 Board members also asked that the units include basements and solar panels. The initial draft of the request for proposals suggested that more than six units could be considered if the density is “sensitively achieved,” McPherson said. Select board members, however, asked that that be removed, noting that there was considerable debate over the number of units.

 “I think that issue is settled,” said Smith.

 McPherson said the solicitation will be similar to the one seeking housing developers on town-owned property on Stepping Stones Road.

According to a memo from McPherson and Town Manager Jill Goldsmith, the town will likely be asked to help subsidize the housing through the affordable housing trust fund, which currently has $3.5 million available (with $750,000 reserved for the Stepping Stone Road project) and the attainable housing fund, which received 1 percent of short-term rental tax revenue. The fund currently has a balance of $3.2 million, with $2.1 million reserved for the Stepping Stone Road housing. Another $1 million in short-term rental tax revenue will likely be received between now and next May’s annual town meeting, according to the memo.