Housing Trust Considers Selling Land To Build Cash Reserves

HARWICH – The affordable housing trust is looking to build its cash reserves through the sale of land now held in its name.

Trust member Bob Spencer informed committee members the progress made in expanding affordable housing over the past couple of years has been funded through cash reserves.

“We should be positioning ourselves to replenish those reserves and put ourselves in a position to be able to take action down the road,” Spencer said.

  Those comments came at the beginning of a trust discussion about selling three groups of parcels now under the trust’s jurisdiction.

The three parcels are on Depot Road, Oak Street and Depot Street. 

The Depot Road land consists of three lots totalling 23.35 acres with access from Depot Road and Orleans Road. There are restrictions on much of that land based on the presence of a vernal pool, isolated wetlands and Massachusetts Endangered Species Program provisions. Trust member Brendan Lowney said much of the property is in a Zone II protecting public drinking water and requiring 10,000 square feet for each bedroom.

Two of the Depot Road parcels, J1 and J2, are buildable and total six acres, Lowney said. The three lots have an assessed value of $1.9 million. He said selling the property as a three-lot package might be attractive to a buyer.

Affordable Housing Trust Chair Larry Ballantine wanted to know whether the property should be sold based on the assessed value or whether an appraisal would be necessary. Ballantine said the existing restrictions on the property would make it hard to develop affordable housing on the land.

Housing Authority Chair Elizabeth Harder said rules under the recently approved Massachusetts Affordable Homes Act allow tiny homes, accessory dwelling units and overlay districts. She urged the trust to explore those options and not to sell the parcels.  

Trust member Julie Kavanagh said the trust should be looking for “the biggest bang for the buck,” and there are not many six-acre parcels available for development.

The Oak Street land, 2.9 acres consisting of two parcels, also contains a vernal pool, but Lowney said there are a couple of upland triangles that would allow for a leaching field and a small house. That parcel, Spencer said, has a site plan and is about ready for a request for proposals or to seek an appraisal to prepare to sell it. The property is assessed at $555,500. The parcels are on the east side of Oak Street north of Leightons Lane.

“Nearly three acres might be valuable to somebody,” Lowney said.

The Depot Street parcel is 1.1 acres which contains a vernal pool, but trust members said the property would allow a single family house or possibly a duplex. The parcel has an assessed value of $201,300. The lot is located across from Our Road in North Harwich.

 Spencer said the sale of the property would provide additional funds for the trust which would allow a much faster means of developing affordable housing than having just the one unit developed by the trust on the property. 

Trust members had questions on the best way to proceed with the sale of the properties, including using the town assessment as the value or seeking an appraisal, and the cost of appraisals. Kavanagh said she would get answers to those questions from Town Administrator Joseph Powers. The trust took no action on moving forward with the sales until those questions were answered.