(Dec. 22, 2025) The Town of Nantucket has reopened their Request for Proposals (RFP) for the Year-Round Deed Restriction Pilot Program. This new program is designed to expand the supply of housing that is permanently reserved for people who live and work on Nantucket year-round.

How it works

Through this pilot, the Town of Nantucket’s Affordable Housing Trust (NAHT) will offer a cash incentive to homeowners who agree to place a permanent deed restriction on their property. That restriction ensures the home can only ever be sold or rented to a year-round Nantucket household.

The program also establishes income guidelines and occupancy requirements, and it bans short-term rentals to ensure these homes serve the year-round community. Once a property is restricted, the protection is permanent—providing stability for generations to come.

Who can apply

• Current Nantucket homeowners who want to sell a deed restriction to the NAHT.
• Homebuyers purchasing a home, who can work with a seller to add a restriction at closing.

Eligible participants must live on Nantucket at least 10 months of the year and either:

• Work at least 30 hours a week for a Nantucket employer,
• Be self-employed with a Nantucket-based business,
• Be an accepted full-time hire for a Nantucket employer seeking housing,
• Contribute to the community by serving on a Town board or committee, volunteering with a local nonprofit, participating in the island’s arts and cultural life
• Or qualify for disability under the Americans with Disabilities Act.

Income limits

To qualify, the buyer’s or household’s total income can not be higher than 240% of Area Median Income (AMI) for Nantucket County, based on household size.

Examples of 2025 limits:

• 1 person: up to $251,550
• 2 people: up to $287,400
• 3 people: up to $323,400
• 4 people: up to $359,250
• 5 people: up to $388,050
• 6 people: up to $416,850
• 7 people: up to $445,500
• 8 people: up to $474,300

This wide range allows middle-income families and working professionals—like teachers, nurses, tradespeople, and nonprofit staff—to qualify, in addition to low-income households.

👉 The income qualification process will take place if and when a homeowner’s proposal is selected for funding, not at the initial application stage.

Maximum sales price

The program also sets limits on how expensive a restricted home can be when it’s sold. The cap is tied to what would be affordable for a household earning the top of the eligible income range, adjusted for things like interest rates and family size.

For 2025, that works out to roughly:

• About $1.2 million for a 3-bedroom single-family home
• About $964,000 for a 2-bedroom condo

The actual limit may change depending on mortgage rates, home size, and other factors, but the idea is to keep these homes within reach for working islanders.

How NAHT’s payment is determined

If your proposal is selected, the NAHT will provide a one-time payment when the year-round deed restriction is recorded on your property. This incentive is determined by an independent appraisal of your home’s market value and will not exceed 20% of that value.

As part of the proposal process, each applicant must specify their proposed price for the restriction. The RFP states:

“The undersigned proposes to the NAHT the price specified below for the specifications contained herein. Proposed price for applying deed restriction cannot be more than twenty percent (20%) of the value of the home.”

For example, if your home is valued at $1 million, the maximum proposed price for applying the restriction would be $200,000. The Select Board has approved $2 million in funding for this pilot program.

Annual recertification

Once a property is restricted, the year-round occupant must recertify each year that they continue to qualify as a year-round resident. This ensures the property is being used as intended and remains in compliance with program rules.

Future resale

When the time comes to sell the deed-restricted home, the seller may choose a buyer, but the buyer must be approved for eligibility by the Monitoring Agency. The new buyer is required to comply with all program rules for as long as they own the home.

Conditions and limitations

There are some important rules to keep in mind:

1. Talk to your advisors first – Homeowners should consult with a financial advisor or attorney about any tax or estate planning impacts before signing a restriction.
2. No other properties – Participants cannot own other residential real estate while they own the deed-restricted home.
3. No inter-family transfers – Inter-family transfers of a dwelling that is subject to a Year-Round Deed Restriction are expressly prohibited.
4. No conflicting rights – Homes with an existing Right of First Refusal or other restrictions aren’t eligible.
5. Rental units allowed only for year-rounders – If the property has more than one dwelling unit, any rental unit must also be rented to year-round residents.
6. Physical condition matters – Applications can be denied if the property is in poor condition, in a flood-prone area, or if the purchase agreement raises concerns.
7. Rules can change – Program guidelines may be updated in the future, and participants will be bound by the new rules.
8. Funding depends on the Town – The program is subject to available funding, as approved by the Nantucket Select Board.

How applications will be evaluated

Applications that meet the minimum eligibility requirements will be reviewed and scored by the NAHT. Proposals are judged on several factors, including:

• Whether the property already has existing housing in good condition
• How resilient the property is to coastal flooding
• The cost per unit compared to program goals
• Proximity to jobs, schools, and public transportation
• Access to town water and sewer
• Energy efficiency of the home
• Availability to close on the deed restriction in a timely manner

Each proposal will receive a rating (such as “Highly Advantageous,” “Advantageous,” or “Not Advantageous”) for these criteria. Final selections will balance these scores with the proposed restriction price (capped at 20% of the property’s appraised value).

This process ensures the Trust invests in properties that will deliver the most benefit to Nantucket’s year-round housing stock.

Program rules at a glance

• The home must be the year-round resident’s primary residence.
• Short-term rentals are not allowed.
• Annual recertification is required.
• Future resales must be approved by the Monitoring Agency.

Funding source

This program is funded by the Nantucket Affordable Housing Trust with public funds approved by the Town.

Housing Nantucket’s role

Housing Nantucket is helping to spread the word about this opportunity. We are not administering the program. We cannot answer any specific questions about the process, give advice, or provide assistance in completing the application. All questions and requests for guidance must be directed to the official procurement contact listed in the RFP through the Town’s e-Procurement Portal.

How to apply

All proposals must be submitted electronically through the Town’s e-Procurement Portal:
👉 https://procurement.opengov.com/portal/nantucket

Applicants must register on the portal, follow the posting, and upload all required forms and documentation.

Key dates

• Questions due: January 9, 2026, 2:00 p.m.
• Proposals due: January 28, 2026
• Award date: February 27, 2026

Questions?

All inquiries must go through the Town’s e-Procurement Portal. Do not contact Housing Nantucket directly with RFP questions—we cannot respond.

Building Nantucket’s Parallel Real Estate Market

Programs like this are part of a bigger picture: the creation of a parallel real estate market on Nantucket. This market operates alongside the traditional open market but is set apart by permanent deed restrictions and affordability requirements. It ensures that a growing share of homes on the island will always remain available to year-round residents—our teachers, tradespeople, healthcare workers, and other essential community members.

This pilot program is one more tool in building that stable, year-round housing market Nantucket needs to thrive.