Year after year, the National Low Income Housing Coalition ranks Nantucket among the most expensive counties in the United States to rent a home. Despite earning decent salaries, many members of Nantucket’s work force are unable to secure adequate housing. Established in 1994, Housing Nantucket, is a private, 501(c)(3) organization whose mission is to create affordable housing opportunities for the Nantucket community. Those taking advantage of Housing Nantucket programs include health care professionals, Town employees, teachers, school staff, postal workers, airport personnel, tradespeople, laborers, retail workers, service workers, and non-profit employees.
Housing Nantucket’s Affordable Rental Program provides thirty units of mostly single-family dwellings in scattered sites around the island. These year-round rental homes are available for Nantucket residents in the low to moderate income range of the area median income. Most of these structures were acquired through house donation, where structurally sound dwellings are donated to the organization by private individuals. The buildings are relocated, rehabilitated and rented to income qualified year-round residents. As well as providing housing for those in need, many wonderful dwellings have been saved from demolition in this way.
Income tax and estate tax advantages have encouraged many property owners to pursue house donation through Housing Nantucket’s Relocatable Dwellings Program. The tax implications of a house donation will depend on the appraised value of the dwelling, financial circumstances, the tax rules in effect at the time, among other factors. The IRS limits the maximum annual charitable deduction taken against income. Generally, for a gift of appreciated property, the amount one can deduct from one’s income in one year is limited to about 50% of adjusted gross income. If the value of one’s gift exceeds that level, the excess may be carried forward for up to five years, applying the 50% limit each year. If you would like to explore this further we encourage you to contact Housing Nantucket and your accountant.
Covenant Program: The Covenant Program provides ownership opportunities for those who qualify to purchase under the program guidelines. The program also benefits sellers who may be able to subdivide their property under the program when not permitted under conventional zoning guidelines. There are currently 55 covenant homes in existence. The 2015 max sales price is $674,931 (up from 2014 price of $626,721) and qualifying income is $139,200 (no change from 2014).