David came to Nantucket in 2006 for a job interview as a construction site supervisor. He was living in Maine with his family at the time, and he took the position when it was offered to him here. He commuted to Nantucket at first, returning to Maine on the weekends. Nine months later, his wife and two children moved to the island. His children enrolled in the Nantucket Public Schools. David was happy to offer them more opportunities and exposure to a different life.

Several years later, David and his wife decided to separate. They divided their assets and split into two households. David struggled to find housing that could accommodate his needs as a single father.

“After the divorce,” David said, “I did the rental thing for a while. I moved 4 or 5 times over the course of six years. It was a trying time for me and the kids.”

In 2016, a lottery for a new affordable homeownership development, Sachem’s Path, was announced. Sachem’s Path was a friendly 40B, which means the developer worked cooperatively with town boards to minimize impact and blend architectural aesthetics with the neighborhood. David submitted an application to purchase a home. There were about 175 applications for 37 homes. The odds were against him, but David selected as one of the lucky winners.

“It was really hard to qualify for Sachem’s Path,” David said. “The stars needed to align at a particular moment in time. As a single dad with two kids, the income threshold was $80K. But I also had to qualify with the bank to get a $250K loan. A lot of people can’t fit into that small of a window.”

After a few years, David started to consider other homeownership options. He saw an ad for a piece of land through Housing Nantucket’s Covenant Program. As someone working in the trades, he always dreamed of building his own home. He pursued the lead and this winter, he closed on the newly created Covenant property.

“The Covenant Program hits the nail on the head,” David said. “The 40B homes are great, but Covenant homes serve a different need. The Covenant income threshold of $175K is high enough where it’s a larger window under which to qualify. And with the asset cap of $412K, people who save their money aren’t penalized. Nantucket people work so much. But you shouldn’t have to work 80 hours a week to afford your housing.”

“The Covenant program is more of a meat and potatoes solution,” David said. “It’s almost the open market but it’s attainable, so you’re only borrowing five or six hundred thousand, rather than the $900,000 needed to buy an open market home. And with a Maximum Resale Price of $824K, there’s a lot of potential for growth.”

Despite strong demand from qualified buyers, few Covenant Homes are for sale today. To meet this demand and encourage new Covenant opportunities, Housing Nantucket and the Town of Nantucket have teamed up to offer financial and technical assistance for sellers. One such initiative helps sellers cover the costs associated with creating a new Covenant property through an 18-month, interest-free loan that is repaid when the property sells. The money can be used for a land survey, the Planning Board application, legal fees, and other costs.

“I was fortunate enough to get my foot in the door at Sachem’s Path,” said David. “I paid down the loan, and built up equity. Then, I sold that home and moved on the Covenant Program. These programs are a stepping stone or a destination, whatever you want them to be. My son purchased my Sachem’s Path home, and he’s 24 years old. With programs like these, there’s hope for people to build their lives here.”

The Covenant Program helps Nantucket residents put down roots and plan for the future. Send us an email to learn more. Our staff is currently conducting meetings online or over the phone and would be happy to discuss the specifics of your situation. Thank you for your support!