With $550,000 due to be transferred into its bank account by this time next week, the Edgartown affordable housing trust is preparing to try a new scheme that is intended to give a boost for affordable housing in town.
The scheme involves buying low-cost homes at the bottom of the market for renovation and resale as affordable housing.
And now there is some cash to do it.
Last year the Martha’s Vineyard Commission allowed developers of the Field Club, an exclusive residential development in Katama, to pay the town of Edgartown $1.8 million instead of designating three lots on their property for affordable housing. The money is due in three installments; the first payment of $700,000 was made late last year.
The town has not yet received its second payment of $550,000, which is due either upon the sale of a sixth lot on the property or by August 1, whichever comes first. The final payment is due March 1, 2010 or after the twelfth sale, whichever is first.
Field Club developer Gerret C. Conover said yesterday that the money for the second payment would be paid based on the August deadline, and that five lots have been sold on Field Club Drive through South Village Associates Realty Trust.
A sixth deed transfer was made on July 2, for $1 dollar; the buyer was Colonial Reproductions LLC of Edgartown, although details on the transfer are unclear.
Principles in the South Village Realty Trust are Arthur J. Halleran and Daniel W. Stanton. The first lot at 9 Field Club Drive was sold in October 2008 to Pennywise Construction LLC. A lot was sold for $755,000 last October to Colonial Reproductions, which is owned by Norman Rankow.
Mr. Rankow and his wife Margaret purchased a lot in November of last year for $675,000. Geoffrey Caraboolad through the Hale Realty Trust bought 5 Field Club Drive in October last year, paying $650,000.
The Field Club is owned by Good Company LLC, in which Mr. Conover is a principal owner. The company purchased the 24-acre site, formerly the site of the Grant Brothers sand and gravel pit, for $12.35 million in 2007 from a group of Islanders represented in the B.A.D.D. Company LLC.
Janet Hathaway, who is member of both the Edgartown affordable housing committee and the town housing trust which was formed late last year, said the trust is mulling one of several affordable housing purchases this fall.
“We have a request for proposals out and are looking for a buy-down in September,” she said, “We’re working hard on the allocation of those funds.”
Ms. Hathaway said the first installment has not been paid.
She outlined a plan to buy low during a down housing market, make some fundamental improvements to the property such as roofing and then present a robust, buyer-ready property for an affordable housing sale.
The affordable housing committee will meet next on August 4.
She also said that as the real estate market goes down, the issue of affordable housing gains importance.
“I don’t think it’s going down as fast here as it is in the real world,” she said.
Comments
Comment policy »