New charter centers on the creation of state-certified housing production.
Mark Lovewell

Planning Boards Launch Major Affordable Housing Initiative

<p>Working as a group, six Island planning boards have launched an initiative that aims to create hundreds of affordable housing units over the next 10 years.</p>

The all-Island planning board has launched a major initiative to create affordable and community housing on the Island.

More than 25 officials gathered at the Oak Bluffs Council on Aging Wednesday to adopt a regional charter with a goal of creating hundreds of affordable housing units over the next 10 years.

The charter centers on the creation of state-certified housing production plans, which provide a framework for identifying and achieving housing goals. Nantucket’s housing production plan, adopted in November, involved Islandwide zoning changes to help facilitate more affordable housing.

Of the Vineyard’s 7,894 year-round housing units, about nine per cent are considered affordable for people earning less than 80 per cent of the area median income. But only about five per cent are considered permanently affordable, and qualify toward a state target of 10 per cent affordable housing stock in each town. That leaves a shortfall of 379 units on the Vineyard.

The housing production plans cover a five-year term, and require annual progress of .5 per cent toward the state inventory target. At that rate, the Island as a whole could reach the state goal in just under 10 years.

Only Aquinnah has already reached its goal. Other towns would need to develop between two and 11 units per year.

Down-Island towns would need to develop more units since they have more houses in general, but Chilmark and West Tisbury would need to develop a higher percentage each year.

Planning officials on Wednesday pointed out that Vineyard housing needs also include community housing (defined as affordable for people earning up to 150 per cent of area median income) and summer housing. Some also advocated for so-called tiny houses, which are typically less expensive due to their size.

The state currently certifies housing production plans only at the town level, but Island officials hope to eventually consolidate their efforts into a regional plan. “It depends on how successful we are in getting the state to see this as a unit,” said Henry Geller, a West Tisbury planning board member who presented the charter.

He added that the Martha’s Vineyard Commission, the Island’s regulatory and planning body, made the region somewhat unique and may affect the planning process.

Members of a regional working group, appointed by their town planning boards, will coordinate each individual plan with other town officials. They will also collaborate with each other and work on regional solutions. The Martha’s Vineyard Commission and Island Housing Trust, along with the Martha’s Vineyard Donors Collaborative, have agreed to pursue funding to hire a consultant to help get the process started. MVC executive director Adam Turner, who attended the meeting, said he thought there may be some state funding available for affordable housing research.

Others pointed out that achieving the 10 per cent housing inventory goal could help leverage state funds for each town.

Mr. Heller noted the differences between up-Island and down-Island and suggested a tradeoff system where towns could share the burden of providing affordable housing. One town might be willing to have a bigger building in return for single-unit housing in another town, he said, offering one example.

“If we can work as an Island, obviously that’s better for everybody,” said Dan Seidman from the Tisbury planning board, who suggested a system where towns that end up with more students as a result of the charter could send some students to other schools as a trade.

Most people on Wednesday seemed to favor collaboration, although many questions remained. Marie Doubleday of Oak Bluffs noted differences in median income from town to town, and urged a balanced approach.

“We don’t want one town to get slammed because of where we stand with collective AMI versus other towns,” she said.

Cheryl Doble of Tisbury emphasized that starting with a town-by-town effort could help each working group see how the different pieces fit together and provide a more detailed understanding when it comes to the regional efforts.

Other concerns focused on economic issues, such as how to provide affordable housing in a way that would still attract developers. Brian Packish of the Oak Bluffs planning board suggested mixed projects where some units were affordable and some market rate.

“There is an awful lot of resources here on the Island, but at the end of the day most of the people want to see a return, and a fairly significant one, on their dollar,” he said. “I think it’s going to become a blended approach.” He also pointed to issues of scale, and the question of how many new units would be optimal for attracting new tenants.

Board members shared a sense that the town and regional approaches could happen simultaneously and benefit each other along the way.

The board voted unanimously to accept the charter and move forward. But the path forward is forming with each step.

Mr. Heller wondered if the all-Island planning board, an unofficial group, had enough authority to adopt the charter. But Mr. Seidman, who helped lead the charter effort, took a more egalitarian approach. “I was just was of the mind that if we chose to come together, then that sort of is the charter,” he said.

Robert Fehl of Oak Bluffs urged a more structured approach, so that the various groups would know what to fall back on, and a voting system to facilitate Islandwide decisions. “To do that we’ve got to have something written down,” he said. Discussion will continue at the next meeting in February.

The working group members are:

Dan Seidman of Tisbury, Brian Packish of Oak Bluffs, Henry Geller of West Tisbury, Peter Temple of Aquinnah, Sam Hart of Chilmark and Georgiana Greenough of Edgartown. Island Housing Trust director Philippe Jordi, along with MVC executive director Adam Turner, who helped develop the charter, will provide staff support.

Comments

Submitted by Anonymous (not verified) on Thu, 01/14/2016 - 21:27

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William Edg

It is all about zoning. The denser you allow i.e. apartments the cheaper it gets. The cheapest land zoning conformant now is probably $250k to $300k. Put an off island prebuilt and you are looking at another $150k to $200k for a total of $450k to $500k. On island built fuggetaboutit price wise. A more densly built project by an off island developer could produce apartments in the $200k to $350k range.

If you take this idea to be basically true a zoning change in each town could build hundreds of housing units faster than anything else. Beware of unintended consequences either way. If you build it they will come add that to those that are already here. That, plus, we could look like Coney Island in no time. Minus the fast foods of course.

Quansoo Chilmark

Coney Island? Hilarious! Everyone knows what the problem is--exclusionary zoning. No young person starting out needs 3 acres of land or even one acre. Nor does a senior citizen looking for less upkeep. Cluster housing is a great solution, with single family dwellings and apartments near each other. A tiny house cluster could be a wonderful and forward thinking idea. Housing trends nationwide are for smaller dwellings.

Submitted by Anonymous (not verified) on Fri, 01/15/2016 - 06:39

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tisbury voter vineyard haven

The State forest would be a great spot,I'm sure the State would be willing to give up a 50 acre parcel in back of High School,great location and it will keep cost down.Another thought to see if Land Bank would give up small amount of acreage,the Towns have given many large properties to Land Bank no charge,large amount up Holmes Hole Road just need a few acres.

Native Islander OB

Something that would help, even just a little, would be to eliminate the land bank fee for any homes purchased valued under $1,000,000.00. These homes are typically for people who live on the island just trying to purchase a home to live in. Adding 2% to a $600,000.00 home purchase can make that home out of reach. We all know that a house on this island at that price, really isn't a lot of house. The Land Bank make most of it's income off of the multi-million dollar home sales. It shouldn't add to the burden of someone just trying to find a home that they can afford that isn't a dump.

Submitted by Anonymous (not verified) on Fri, 01/15/2016 - 10:19

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Donald Muckerheide Oak Bluffs

40 years and no change. Why should any hard working American subsidize our self inflicted housing problem. Gee, Mr. hard working mid-west farmer, we rent our homes like hotels and motels so there is no residential land available for the residents. We rent our basic homes for 2000.00 a week and get $10,000 to $50,000 per week for the nice homes which we do not tax or regulate while we turn a blind eye to our own residents who are forced to live in third world living conditions for the summer season and many live in substandard and illegal conditions all year round. We deserve you hard earned tax dollars because we??????????????????????????????????????????

Submitted by Anonymous (not verified) on Fri, 01/15/2016 - 12:57

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Carol Lashnits VH

Deja vu! And how depressing. Sounds exactly like what we were talking about in the mid-70's when I founded IEH along with Margaret Love and Marguerite Bergstrom and others committed to helping people who needed housing help. Keep in mind that Island Elderly Housing has produced 60 subsidized rental units in VH and another 105 in OB - all permanently affordable and all for the lowest income elderly and disabled. Add to that what the town of Edgartown has done at Morgan Woods (mixed income rentals). Towns and non-profits have produced the best and most affordable rental apts. - using state and federal money - and built them on donated or town land. That's KEY! If you have to buy the land, it won't happen.....it would just be too expensive. And it's rental housing not home ownership we need now so desperately. Think past IHT and maybe it'll happen. You can't be a purist and you have to accept that strings come when you're awarded millions of dollars in federa/statel funds. I hated those strings, but despite that, it's worth it. What % of the required 10% of permanently affordable housing of the entire housing stock have we met through our government subsidized housing I wonder?

Submitted by Anonymous (not verified) on Sat, 01/16/2016 - 11:26

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Brian Smith Oak Bluffs

We don't have an housing problem, we have a financing problem. Families currently renting a house year round on the island are probably paying the same , or more, than what a mortgage would cost. However the cost of living makes it virtually impossible to save money for a down payment. I think these housing groups and the MVC should partner with financial institutions as well as realtors to find innovative ways to help young islanders buy their first home. I would much rather have my taxes going towards helping islanders buy existing housing stock then develop hundreds of housing units. Each new built affordable housing unit reduces the supply of available land thus increasing the price of land for the next generation of islanders. We have no shortage of houses on the island, we have a shortage of new, innovative ideas on how to solve the problem.

Truthteller CA

B Smith, you are so right about affordable housing on the island. I agree with you, let us put on our thinking caps and brainstorm a few new and creative ways to use the existing housing units, of which we have plenty, as you wrote. We get stuck in the same old ways of doing things which do not much to solve the problem of young families being able to afford living on the island. Kudos to you.

gina Menemsha/nyc

Good point Brian..The local Banks need to step up their local mortgage lending.. They all chase local deposits.. But not flexible lending products especially to assist the first time buyer market.. I'm not asking for sub prime products just more flexibility in the process..Many first time buyers have decent credit scores & a local Banking relationship just not the full down payment. + the new mortgage lending rules have set the bar so high after the sub prime Meltdown..

That part of the affordable housing equation is oddly missing when all these planning boards discuss strategy..
Unless I'm missing something.. Why not develop a program similar to a SBA loan product where the lender gets a partial loan guarantee in order to reduce their risk exposure??

Shane Edgartown

Exactly, great ideas!! Something similar to an SBA 505 & 7a loan programs would be great for the first time home buyer/ residential home buyer on the island. Right now I believe 10% is the standard for most of the first time home buyer programs on the island. With MassHousing and the ONE program you can get a loan with 5% down payment but most islanders make too much money to meet the salary requirements. With real estate value appreciating far beyond other segments of the economy, the down payment is the barrier we need to hurdle.

Taylor M.V.

I think we have a lack of reality problem. If home ownership is such a priority for these “young islanders” then they can move off island for a time, pay less for nearly everything required for life (rent, groceries, gas, healthcare, dog food, clothing, diapers, oil changes, hamburgers, toothpaste, lightbulbs…catch my drift?), earn more money and probably work for an employer that actually provides benefits. When they have saved enough for a down payment and have a job on island that will allow them to pay their mortgage they can feel free to move back. I can empathize with people who are struggling financially but if you want to live here you should be able to do so independently instead of thinking your birthright entitles you to a handout – now that’s innovation!

gina Menemsha/nyc

FYI Taylor,
Any mortgage product/program I was referring to was NOT a handout.. The borrowers are on the hook for the full mortgage amt.. I was just explaining how the SBA 504 program helps business owners buy a Commercial building b/c they don't qualify under Conventional lending rules.. So if an Island bank wanted to be innovative they might partner up w/ a local mortgage product.. If the local lenders don't step up all the rental building won't really address the local housing problem.. It's an approach to be explored..
Take deposits loan back to the Community.. Why not??

Frank Oaks Bluff

I don't think the problem is down payments. I think the problem is the cost of a home. I spent a few minutes on some mortgage calculators (an easy search on Google and it is fast and easy to use the calculators). Even with zero down, a household needs to earn 80k to afford a 400k home at the lowest of 30 yr mortgage interest rates. First, that takes that household well out of the affordable housing discussion, as it is defined as 80% of median area income...more like 40k. Second, even if we did want to help turn 80k households into home owners, recent and ancient history and every bit of history in between demonstrates that zero down loans are a very very bad idea. There is no equity to protect, no skin in the game. This is not a financing problem. It is a home price problem. Or, perhaps, an attitude problem. depending on whether or not you feel everyone who wishes they could own a home here should have that wish granted by taxpayers. High density rental units with zero nitrogen output might be a better first step.

Brian Smith OB

There are a lot of islanders who make way more than 80k but can't afford a home because of the down payment. A 400k mortgage is under 2k a month. There are many islanders paying way more than that for a year round rental. For those who can't afford that, well, they really need to consider moving to a place where their skills and education give them the ability to afford a place to live.

Submitted by Anonymous (not verified) on Sun, 01/17/2016 - 08:18

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Ivo Meisner Oak Bluffs

I suggest less "planning" talk and more action.
The blueprint for creating and administering affordable Island resident homesites was established by the Vineyard Open Land Foundation back in the 1970's. Just follow it.
Need land? Take some from the Land Bank. From the state. From bankrupt developers.
Need money? I'm sure the filthy rich landowners who cluster on the shores of the Vineyard would love to be tithed.

Frank Oaks Bluff

I appreciate your sentiments, but am pretty sure you need to rethink the execution. Bankruptcy is protection from creditors. Towns can't take bankrupt developers' land. The best they can hope for is to stand in line at the court with the other creditors and get their cut. The land bank has its own rules, and they don't involve giving land for cheap housing to the towns. The state won't give a grain of sand. "Planning" isn't the answer, but a bit of planning might well be.

George Stein Edgartown

Nice discussion, good ideas... cluster housing is more commonly referred to as multiple units. Throwing a dart and offering a proposal for others or the state's generosity is a pipe dream. Until each town selects an appropriate site for this type of development. Permanent restraints are put in place to insure actual year round folks are in OMG 2/3 story residential units in multiple adjoining courtyards. Wheels will continue to go round. Some municipalities create a housing authority which comes come out of in this case a multi town agency to watch over development bids and construction. There was a feature recently about a group in OB who is quite short on people for this type of thing. Prayer can only do so much at times.

Robert Edgartown

Folks, time to face the music. We have passed the tipping point on conventional solutions. To many islanders sold out to the rich and famous or others with means and the island is only so big. Add to that land preservation, environmental concerns, good zoning laws and now we are here. The solution can't be little town by little town. No, the solution needs to be island wide. It needs to current residents first and affordable. Tastefully built and landscaped apartments with ready access to public transportation is a smart model for our future.

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