Trust Approves $605K For West Harwich School Project

 HARWICH – The affordable housing trust has approved $605,000 toward developer John Carey’s multifamily building that will contain affordable housing units adjacent to the West Harwich schoolhouse at 5 Bell’s Neck Rd.

 Carey has approval to build 10 housing units on the property.  Seven of the 10 units will market-rate apartment rentals in the historic schoolhouse building, constructed in 1871. Three affordable apartments will be in a separate building on the property.

Carey told trust members last week that developers are not building multifamily developments anymore because the cost is too great and rental fees do not cover expenses. He made it clear that without financial assistance he would not likely be building the three units of housing.

In late Carey July filed an application with the trust seeking $550,000 to assist in constructing the second building, which as proposed will have two one-bedroom units and one two-bedroom unit. He told trust members that they would be buying a deed restriction that will cap those rentals at affordable rates in perpetuity.     

 Trust members were also attracted by that fact that the three units would be added to the town’s state Subsidized Housing Inventory (SHI),and once he pursues the state’s Local Initiative Program, all 10 units could be added to the SHI list, assisting the town in its goal to have 10 percent of housing in the community affordable.

“Our community is desperate for year-round housing options,” Carey wrote in his application to the trust. “Neighbors constantly come by to thank me for investing in West Harwich. If funded, I see this project as being the catalyst for investment in all of West Harwich, restoring the proud town back to its former glory.”

Affordable Housing Trust Chair Larry Ballantine recommended that the trust also provide a 10 percent contingency to Carey’s request to make sure he has the funds to finish the second building. Those funds are a reserve, he stressed, and any remaining funds upon completion of the project would need to be returned to the trust.

Trust member Brendan Lowney said the contingency would be available to address unknowns, such as unexpected utility or septic costs, but not to upgrade the quality of products.

The total projected cost of the second building is $938,000, according to the application, with Carey proposing to commit $385,000 to the project. Trust members approved the addition of the 10 percent contingency with the understanding Carey would pursue the Local Initiative Program, which requires the developer to work with the community to seek a friendly 40B permit through the appeals board. Carey committed to do so.

The approval was said to be similar to that of the funding provided to the Harwich Fire Association in the restoration of the former fire station on Bank Street, at which three affordable apartments units are under construction. The trust voted to provide 50 percent of the funds to Carey in an initial deposit; 25 percent will come when the rough construction is completed; 15 percent upon final inspection; and the remaining 10 percent with occupancy certification.

Carey said the trust approval will allow him to move forward in the near future with the construction of the second building. He hoped to have Cape Codders living in the units by late spring. Carey told the trust it is his intention to retain the rental units as landlord for the rest of his life.