(March 27, 2024) At Housing Nantucket, addressing the challenge of housing affordability for residents within a variety of income-brackets is at the core of our mission.

The Need Runs Deep

We are proud to announce the launch of the Honeysuckle Homeownership Lottery, a groundbreaking initiative aimed at providing attainable housing solutions for year-round households earning 151-240% of Nantucket’s Area Median Income (AMI). This segment of our community often falls into a gap where they earn too much for existing affordable housing programs, yet market-rate homes remain financially out of reach.

Traditional affordable housing programs typically target households at 80% of AMI. However, on Nantucket, the reality is different. While the Covenant Program and Sachem’s Path homes cater to those earning less than 150% AMI, many middle-income families still struggle to find stable housing.

Consider a scenario where both partners in a married couple work- either for themselves or a local business, for the municipality, hospital, or a nonprofit. Their combined income could feasibly exceed $205,000 per year, rendering them ineligible for assistance programs, yet the open market proves equally unattainable.

The 2023 average sale price for a residential home on Nantucket was $4.2 million. As of the date of this blogpost, the cheapest open market homeownership opportunity on the island is listed at $1.6 million for a single-family home on Cynthia Lane.

Where does this leave us?

This catch-22 leaves vital members of our workforce in a vulnerable position, impacting the overall security of our community. Recognizing this urgent need, we’ve developed homes on Honeysuckle Drive to bridge this gap. Classified as Attainable, the purchase price was designed to be within reach for residents earning up to 240% AMI.

These homeownership opportunities signify a crucial step towards creating new housing stock that meets the demands of our community. Through this initiative, we aim to provide stable and attainable housing options for an underserved demograhic some call the “missing middle”.

Sale Price Calculation

To calculate the sales price, we used a formula inspired by the standard, universal deed rider used to set the initial sale price of affordable homes across the state. Our formula imagines a situation where a household earning 200% AMI puts down 10% of a purchase price on a mortgage. The interest rate used was 6.88%, which was a quarter percent higher than Freddie Mac’s interest rate on February 5, 2024, the date the price was calculated.

Our goal was to make the monthly housing cost less than 30% of the income of that 200% AMI household. This housing costs includes homeowners insurance, taxes, PMI, and HOA fees.

Upon resale, the sales price will again be calculated by formula. A resale price multiplier will be assigned to the property. This ensures the home will remain Attainable in perpetuity, equally as attainable for subsequent buyers as it was for the first buyer.

Ongoing work

Proceeds raised from the sale of these homes will be re-invested into our other construction projects. We work tirelessly every day to create a variety of solutions – like the affordable rental apartments at Wiggles Way- to serve a range of income levels.

Housing Nantucket envisions Nantucket as a place where all Island residents have access to decent housing options that meet their needs. By participating in our efforts, you help bring this vision into reality. Together, we ensure future generations can call the island home.

Click here for more information about the Honeysuckle Homeownership Lottery, and contact us to support our work.