Scott's Grove Financing

I would like to share information on West Tisbury warrant articles for the construction of rental apartments at Scott’s Grove.

I would like to share information on the two West Tisbury warrant articles approved by voters for a $500,000 grant to the Island Housing Trust (IHT) for the construction of the nine rental apartments at Scott’s Grove. The warrant articles approved bond financing that will be paid by CPA revenues over the next 10 years. Although CPA bond financing has been used in the past for historic prevention (lighthouse move) and open space (Field Gallery), this is the first time it has been used by an Island town for community housing.

As part of the project budget, the IHT will be securing separate bank mortgage financing for $550,000 that will be paid by revenues from the rentals. The revenues from the nine rental apartments managed by the Dukes County Regional Housing Authority is meant to cover its operating expenses, including capital reserves for future repairs. The IHT does not anticipate any payment or profit from the operations of the rentals.

Along with the other $900,000 in CPA funding awarded in 2016, the town will pay for $1.4 million or less than half of the $2.9 million total project costs. More than half of the total project costs or $1.5 million will be raised by the IHT through state grants, private donations, and bank financing.

Philippe Jordi
West Tisbury

The writer is executive director of the Island Housing Trust.

Comments

Submitted by Anonymous (not verified) on Sun, 04/23/2017 - 18:49

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Miss W WT

No wonder we have so little affordable housing. You forget the $750,000 piece of land that IHT is using for free from WT. No property taxes on this project over 40 years, thats another $250,000. Plus the interest cost on the bond financing for the next 10 years, It is just not competitive at almost $300,000 per apartment. I believe you re-allocated monies your raising to your other project in Tisbury (Kuehns Way) at WT expense. We were duped and the selectmen should have held you and IHT to the terms of our deal, WRONG!

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