Town of Provincetown Awarded $372,800 Housing Development Support Program Grant for acquisition of Property at 40A Nelson Avenue by Housing Land Trust for Cape Cod for Six Affordable Rental Housing Units

The Massachusetts Department of Housing and Community Development has announced its award to the Town of Provincetown of a grant for $372,800 under the Housing Development Support Program (HDSP) for the acquisition of 40A Nelson Avenue by the Housing Land Trust for Cape Cod. The HDSP program provides federal Community Development Block Grant funds, usually with other public and/or private resources for the creation, preservation, and improvement of affordable housing. The Provincetown Heights Affordable Rental development will be constructed and managed by Community Housing Resource, Inc. through a 99-year land lease with the HLTCC, and would create six (6) affordable year-round rental housing units.

This grant award helps address the Board of Selectmen's FY 2003 Town-wide policy goal to develop and implement strategies for increasing the supply of affordable year-round rental housing units in Provincetown. Last year, the Town received $190,000 under the HDSP program for a two-unit affordable property at 27 Nelson Avenue, developed by the Lower Cape Cod Community Development Corporation. "The Town of Provincetown is grateful to the Swift Administration for this continued recognition of the affordable housing crisis in Provincetown," Town Manager Bergman said.

Description. The Provincetown Heights Affordable Rental Housing development is for the acquisition of 0.81 acres of land at 40A Nelson Avenue, Provincetown, by the Housing Land Trust for Cape Cod (HLTCC). The property will be improved by six units (in three buildings). There will be 100% low/moderate income benefit. All six rental units of the development will be affordable to households at 50% of the Barnstable County median income, with eligibility for occupancy up to 65% of area median income [HUD Barnstable County Median Income = $56,800], in accordance with the requirements of the Growth Management By-laws of the Town of Provincetown.

The size and mix of units are-- 2 two-bedroom units, each consisting of 960 square feet of living space, and 4 one-bedroom units, each consisting of 747 square feet of living space.

Financing Mechanism: Housing Development Support Program funds will be used for the acquisition of the property along with carrying cost and legal costs. Total development costs are $1,186,694: the acquisition price is $320,000; hard and soft costs total $866,694 (including HLTCC legal fees and carrying costs in anticipation of grant funds), and general administration, $22,000. The acquisition cost includes the price of the land, plus infrastructure improvements [retaining wall to allow access roadway into the site, underground utilities (town water, electric, cable and telephone), Title V wastewater disposal system, drainage/runoff mitigation] provided by the Seller prior to the sale of the land.
Construction is not funded with HDSP funds, but with other pending sources including Massachusetts Housing Partnership Small-Scale Rental Production Program and the Massachusetts Housing Investment Corporation.

For more information, contact Grant Administrator Michelle Jarusiewicz

Affordable Housing