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Verify property qualifies
Properties must be located on Nantucket, and must not already have been rented year-round in the past 12 months. Full program guidelines can be found here.
Originally piloted in 2023 by ACKNow Community Initiatives, the Lease to Locals pilot was a privately funded program designed to help address the lack of housing options for year-round residents. In August of 2024 the Town of Nantucket awarded a public grant of $450,000 to relaunch the program with a new non-profit partner, Housing Nantucket and the program officially relaunched on September 9, 2024.
Housing is Nantucket’s most urgent problem. The hospital, schools, local government, essential services, and other local businesses all struggle to attract and retain workers. According to the US Census Bureau the inventory of year-round rentals on Nantucket has decreased by one-third (nearly 600 units) in the last decade.
The Lease to Locals program provides a multi-year financial incentive to property owners for converting housing units, including those currently operating as short-term rentals, into year-round rentals for residents who work on Nantucket for local organizations and businesses.
Properties must be located on Nantucket, and must not already have been rented year-round in the past 12 months. Full program guidelines can be found here.
A Qualified Household must have at least 50% of the adults working at least 30 hours a week for an an employer on Nantucket with exceptions given for disability and caretakers. Qualified Tenants are also subject to an income cap (see FAQs below).
Property Owners must sign a long-term (12+ month) lease with a Qualified Household. The Lease is subject to a rent cap (see below) and Qualified Tenants can not be of blood relation or employed by the Property Owner.
Placemate will provide property owners an online application which needs to be completed before the incentive can be disbursed. The funds will be paid in two equal installments — one at the beginning of the lease, and one at the end of the lease.
The Qualified Property Owner and Tenant(s) must comply with midway and final lease checks to ensure they are in compliance. If they are found out of compliance, they may be disqualified from receiving additional incentive payments.
Property Owners are provided a $4,500 to $9,000 incentive per Qualified Tenant housed through the Program by signing a Long-Term Lease with a Qualified Household. Dependent children will count as one (1) additional Qualified Tenant, regardless of the number of children present.
Property Owners who renew their lease with a Qualified Household may be eligible for additional incentives in Year 2 and Year 3, equal to 50% and 25% of their Year 1 incentive amount, respectively. Refer to the chart below for specific incentive amounts, the Rental Caps tab for permitted rent increases in Years 2 and 3, and the FAQs for more detailed information.
| Unit Size |
Incentive Per Qualified Tenant (Year 1) |
Max. Incentive Per Unit (Year 1) |
Max. Incentive Per Unit (Year 2) |
Max. Incentive Per Unit (Year 3) |
|---|---|---|---|---|
|
Private Room |
$4,500 |
$4,500 |
$2,250 |
$1,125 |
|
Studio |
$7,000 |
$14,000 |
$7,000 |
$3,500 |
|
1 Bedroom |
$9,000 |
$18,000 |
$9,000 |
$4,500 |
|
2 Bedrooms or Greater |
$9,000 |
$27,000 |
$13,500 |
$6,750 |
If Property Owners sign a Long-Term Lease renewal with a Qualified Household, they may increase the rental rate by up to 5% per year to remain eligible for Year 2 and Year 3 Incentives. Exceptions to this cap may be granted if the Property Owner provides documentation demonstrating that their ownership costs have increased by more than 5% in Year 2 or Year 3.
| % Increase | Room | Studio | 1-Bed | 2-Bed | 3-Bed+ | |
|---|---|---|---|---|---|---|
|
Year 1 Rent Max. |
– |
$1,500 |
$2,000 |
$2,700 |
$3,500 |
$4,000 |
|
Year 2 Rent Max. |
+5% |
$1,575 |
$2,100 |
$2,835 |
$3,675 |
$4,200 |
|
Year 3 Rent Max. |
+5% |
$1,654 |
$2,205 |
$2,977 |
$3,859 |
$4,410 |
Tenant Testimonial:
The Lease to Locals Program (the “Program”), offers multi-year cash incentives to homeowners who rent their homes to qualified households. The goal of the program is to increase the supply of year-round housing available for locals and full employees working on Nantucket.
Eligible Properties must meet the following requirements:
Property Owner: The individual(s) or legal entity that holds the deed to the property, as reflected on the Assessor or Registry of Deed records.
Signed Lease Agreement and Complete Application Packet: The Property Owner must complete an application and sign a Long-Term Lease with a Qualified Household. The complete application packet must be submitted within 45 days of the start of the lease.
Lease Compliance Checks: The Property Owner must comply with the lease agreement for the full length of the lease and will be checked for compliance by Placemate, Inc., at six (6) months in the lease. Failure to comply with the lease requirements at any time shall disqualify the Property Owner for grant payments.
Rental Affordability Cap: The Property Owner cannot charge monthly rent that exceeds
Private Room: $1,500/month
Studio: $2,000/month
1BD: $2,700/month
2BD: $3,500/month
3BD or greater: $4,000/month
Fair Housing Act Compliance: The Property Owner must comply with the Federal Fair Housing Act which prohibits discrimination on the basis of race, color, religion, sex, or national origin.
A Qualified Household is any group of individuals living together in one home as their primary residence, where at least half of the adults are Qualified Tenants.
A Qualified Tenant is an adult who is not of blood relation or employed by the Property Owner. All Qualified Tenants in the Qualified Household can not exceed the Income Limits for the Household Size and must meets at least one of the following criteria:
Qualified Tenants shall have a total household income that does not exceed 175 percent of the Nantucket County Area Median Income (AMI) Limits, adjusted for Household Size, established by the U.S. Department of Housing and Urban Development (HUD).
Household Size is defined as the total number of Qualified Tenants.
The following chart contains the maximum household income limits for 2024:
Household Size | Maximum Gross Income |
1 | $203,000 |
2 | $231,875 |
3 | $260,925 |
4 | $289,800 |
5 | $313,075 |
6 | $336,175 |
First create a renter profile with Placemate. Once we have that information on file we can send you prospective properties that fit your criteria.
Prior to disbursing grants, Housing Nantucket will review documentation submitted by Placemate, Inc. including a copy of the fully executed lease agreement(s), Proof of status for Qualifying Tenants, and Property Owner Application.
Housing Nantucket will issue the first half of the grant payment to the Property Owner within forty five (45) days of the Qualified Household taking occupancy of the Housing Unit.
Housing Nantucket will issue the second half of the grant payment to the Property Owner within forty five (45) days of the end of the lease. Payments shall be issued to the Property Owner as their legal name(s) appear on recorded property ownership documents.
Property Owners who renew their lease with a Qualified Household may be eligible for additional incentives in Year 2 and Year 3, equal to 50% and 25% of their Year 1 incentive amount, respectively.
To qualify, Property Owners can not increase rent more than 5% of the original rent charged in the first year of the program. Exceptions to this cap may be granted if the Property Owner provides documentation demonstrating that their ownership costs have increased by more than 5%.
Property Owners can extend with their existing tenants or replace them with Qualified Tenants. If the new Qualified Household has fewer Qualified Tenants the incentive would be reduced accordingly. If the new Qualified Household has more Qualified Tenants the available incentive does not increase.