Nantucket Affordable Housing Trust Approves Major 64-Unit Workforce Housing Development
The Nantucket Affordable Housing Trust held a focused meeting on December 10, 2025, culminating in the unanimous approval of closing documents for the transformative Tacoma Green Workforce Rental Housing Project. This landmark development will provide affordable housing for 64 families on town-owned land, representing a significant step forward in addressing Nantucket's ongoing housing crisis.
Tacoma Green Project: 64 Units of Affordable and Workforce Housing
The centerpiece of the meeting was the approval of the Tacoma Green Workforce Rental Housing Project, located at 6 Fairgrounds Road and 4 Weight Drive. Trust member Vicki Marsh outlined the project's scope: "This project is going to have a total of 64 residential, affordable and workforce rental housing units."
The development will include:
- 55 affordable and workforce housing units
- 9 market-rate units
- Construction on town-owned parcels
- 99-year ground lease with affordable housing restrictions in perpetuity
The project represents years of planning and persistence by the Affordable Housing Trust. As one speaker noted during the meeting, "64 families will have high quality housing at affordable prices in a convenient location. It's going to be amazing." ▶ Watch celebration
Another participant emphasized the significance of this milestone: "It has been a long time coming and persistence paid off." The unanimous vote to authorize the chair or vice chair to execute closing documents marked a crucial step toward breaking ground on this essential workforce housing development.
Complex $8.7 Million Financing Structure Approved
The Affordable Housing Trust approved a sophisticated financing package totaling $8.7 million in trust fund loans to support the Tacoma Green project. The financing structure involves multiple lenders and leverages Low-Income Housing Tax Credits (LIHTC) to maximize funding.
Brian Sullivan, representing the development team, explained the tax credit component: "The total LIHTC credits are between federal and state, around $18 million." This substantial tax credit allocation will be crucial to making the project financially viable.
Brian Turbot detailed the innovative financing mechanism: "We are getting the tax credits and then loaning them back out to the project which will in turn return additional funds to the town many, many years from now." This approach allows the town to support the project while potentially recouping funds over the long term.
Multi-Lender Financing and Payment Waterfall
The project's financing involves multiple institutional lenders, including:
- Rockland Trust
- Mass Housing Partnership
- Nantucket Affordable Housing Trust ($8.7 million)
- Additional private and public lenders
The loans carry varying interest rates, with the trust's financing structured at 1.51% and 4.07% across two separate loan instruments. Sullivan noted the town's position in the repayment structure: "We are in sixth position on our $8.7 million loan."
This sixth or seventh position in the payment waterfall means the town's loan repayments are dependent on project cash flow after other lenders are paid. As Turbot explained, "In the beginning there's very minimal distributions back to us," though returns are expected to increase over the project's lifespan.
The trust unanimously approved executing the complex closing documents, including both loan structures, clearing the way for the project to move forward to construction.
Strategic Location on Town-Owned Land
The Tacoma Green project's location on two town-owned parcels at 6 Fairgrounds Road and 4 Weight Drive provides strategic advantages for creating affordable housing. By utilizing publicly owned land, the project reduces acquisition costs and ensures long-term affordability through the 99-year ground lease structure.
The affordable housing restriction in perpetuity guarantees that these 55 workforce units will remain available to Nantucket's working families for generations to come, addressing concerns about affordable housing units converting to market-rate properties over time.
The convenient location will provide residents with access to employment centers, services, and community amenities, making it an ideal site for workforce housing that serves the island's year-round population.
Upcoming Trust Meetings and Next Steps
As the meeting concluded, trustees confirmed upcoming meeting dates to continue their work on affordable housing initiatives:
- December 16, 2025 at 12:30 PM
- January 6, 2026 at 12:30 PM
Both meetings will be held in hybrid format, allowing for both in-person and remote participation to ensure broad accessibility for trust members and the public.
The meeting adjourned by roll call vote after approximately 20 minutes of focused discussion on the Tacoma Green project approval.
Impact on Nantucket's Housing Crisis
The approval of the Tacoma Green Workforce Rental Housing Project represents one of the largest affordable housing developments in recent Nantucket history. With 64 total units—including 55 dedicated to affordable and workforce housing—the project will make a measurable impact on the island's severe housing shortage.
Nantucket has long struggled with housing affordability challenges driven by limited land availability, high construction costs, and strong demand from seasonal residents. Workforce housing projects like Tacoma Green are essential for ensuring that teachers, healthcare workers, municipal employees, and other year-round residents can afford to live on the island where they work.
The project's financing structure, combining town funds with state and federal tax credits and private lending, demonstrates the creative approach required to develop affordable housing in one of the nation's most expensive real estate markets.
For complete meeting details, video archives, and additional information about Nantucket's affordable housing initiatives, search for Nantucket Affordable Housing Trust meetings on CivicIndex.io.