NP&EDC endorses housing bank article
BY PETER B. BRACE
Nine out of 10 Planning Commissioners think creating a housing bank is good for Nantucket.

The Nantucket Planning & Economic Development Commission (NP&EDC) voted 9-1 at its Oct. 5 meeting to endorse Article 22 for the Oct. 23 Special Town Meeting, creating a housing bank to collect and dole out funds for the construction of affordable year-round housing.

Discussion of the proposal was decidedly brief, as the commissioners mostly listened to Nantucket Housing Office Executive Director Leedara Zola explain the proposal and the modifications made to it by the Finance Committee.

The housing bank would be similar in function to the Nantucket Islands Land Bank. It would levy a one-percent tax on all real estate sales of $2,000,000 or more. The money would be administered by a fivemember elected commission, to which developers could apply for construction funding to build housing for islanders earning up to 150 percent of the median income of $122,825 per year.

The commission's first members would be appointed by the Board of Selectmen to staggered terms that, upon their expiration, would each become elected positions during the annual town election.

In order for the housing bank to become reality, a majority of the voters at the special Town Meeting, which begins on Monday, Oct. 23, would need to approve Article 22, a homerule petition, to be filed with the state legislature following its adoption.

Zola came away from the NP&EDC meeting pleased that the majority of the commission supported the housing bank concept.

"I haven't spoken to anyone who is not in favor of it," said Zola. "We, as a community, just knew that the housing crisis needed to be addressed. I think the community sees we need funding and is willing to participate in a solution, especially one that has so much local control."

Zola also received a positive recommendation from the Finance Committee, which tweaked Article 22 to build in voter checks and balances, and to keep administration costs to a minimum. That staffing limit is five percent of the money that the housing bank generates. Zola hinted that some of the administrative work could be handled by the existing land bank staff.

"They did an incredibly thorough job and they asked incredibly thorough questions," she said.

Specifically, Zola said the Finance Committee tightened up some of the wording pertaining to bond acquisitions so it parallels how the Land Bank does it, which requires a Town Meeting vote.

The FinCom also required that Town Meeting voters approve the regulations and criteria for the awarding of the grants from the housing bank commission, which serves to add plenty of community input on what types of projects get funded.

As good as Lola made it sound, Planning Commissioner Nat Lowell said he was concerned about the ability to change the tax percentage, should it become necessary.

"I think the public likes the Land Bank the way it is. But, I also think we are coming to this pinnacle of land acquisitions and the Land Bank is going to be seen more as public access, rather than taking land off the tax rolls," said Lowell. "My question is 'how tough is it going to be change that, is that going to be in the legislation?' "

"No," said Zola, the voters at Town Meeting would have the power to change the fee percentage. To change the act itself would require legislative intervention.

Planning Commissioner John McLaughlin, the lone dissenting voter, questioned Zola's numbers, saying she should look farther back than just 10 to 15 years for median income numbers.

"I disapprove some of the things that's written into it," he said after the meeting. "They're not going to solve the housing issue on Nantucket. They've proven that over the last 15 years. There's no way of finding affordable housing."

But Zola is confident the housing bank will work this time around because of the commission's and FinCom's support, and the community's general feeling on the need for housing. Also, instead of being part of a housing bank bill for Martha's Vineyard, which failed at the state level this summer, Nantucket is doing its own bill. Instead, legislators will be focused just on Nantucket this time.

"We really do have a shot at getting it through the legislature," said Zola who added that both Rep. Eric Turkington (D) Cape & Islands and Sen. Robert O'Leary (D) Cape & Islands, are behind it.

The State House of Representative defeated last year's version of this bill, which was originally written for Martha's Vineyard but with a sister organization for Nantucket, on July 27 91-64 after the State Senate had approved it in early June. Just before the House killed the bill, the Nantucket portion of it was removed.

One of the Housing Office's board members and a real estate broker, Ken Beaugrand, believes all islanders will eventually warm to the housing bank concept.

"The feeling is they would be contributing to the fabric of the community," he said. "Obviously, nobody is very happy to pay another tax, but we have to consider the purpose and the use. People have seen the benefits of the Land Bank, so we've got a precedent. It benefits the community and also the individuals who are contributing to it."

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