Chilmark officials this week announced a new program they hope can stem the tide of homes turning into lucrative short-term rentals. 

As the Island continues to struggle with its housing crisis, Chilmark is offering one-time cash incentives of up to $12,000 to homeowners who convert their properties from vacation rentals to year-round rentals.

The 18-month pilot program, dubbed Lease to Locals, aims to keep Island workers in Chilmark, one of the most expensive places to live on the Island. This is the first time a Vineyard town has tried the idea, which has also been tested in Nantucket and Provincetown. 

“It’s very important for us in Chilmark to get on board with something like this,” said Peter Cook, the chair of the town’s housing committee. “It is very encouraging that the idea already has some traction here in Chilmark. I think the major reason for this particular program was their record of success so far.”

Chilmark is paying for the program via the town's rooms tax.

Ray Ewing

Chilmark is paying for the program via the town's rooms tax.

Ray Ewing

Units have to be rented to people making less than or equal to 150 per cent of the area median income, which amounts to about $157,000 for one person in Dukes County. The one-time monetary incentive to landlords is up to $12,000, with $4,000 for each possible tenant with a limit of three tenants per lease. For rentals to qualify for the program, monthly rates must fall within a range of $2,900 to $4,250, depending on how large the unit is.

The program is being funded through the town’s municipal housing trust by allocating 2 per cent of the room excise tax that was voted at the annual town meeting.

Developed by a company called Placemate, the idea was initially proposed to Island towns through a presentation to the Martha’s Vineyard Commission in 2023. Town officials saw it as a natural fit because of Chilmark’s similarity to Nantucket, Provincetown and western resort communities.

As of July 1, 83 people have been housed through the program on Nantucket since it was launched last September, according to Placemate.  

Chilmark is currently the only town on the Vineyard that has no affordable housing units. Mr. Cook hoped the program could help close that gap.

“[The program] will have a chance to establish whether it works or not. People will see for themselves,” he said. “I think it will be a very strong incentive not only for the future of this program but also help support the housing initiatives that we’re pursuing.” 

Part of the idea is to show landlords the pros of renting long-term, when compared to the constant turnover of short-term rentals. Chilmark has 437 short-term rentals, some renting for several thousands of dollars per week, and 536 year-round occupied residences, according to Martha’s Vineyard Commission data. 

According to Mr. Cook, in the other communities the program has seen good retention of long-term renters, even in cases where the monetary incenvtive to landlords did not continue.  

Laura Silber, the Martha’s Vineyard Commission housing planner, said it was heartening to see resort communities talking to each other about solutions and she felt that Lease to Locals had potential on the Island. 

Each of the six Vineyard towns are currently considering new housing production plans, and the others have listed the Lease to Locals program as a potential option in the future. 

“I am hopeful the Chilmark launch will lead the way for more Martha’s Vineyard towns to consider Lease to Locals as a viable tool in the housing solutions toolbox,” she said. 

Chilmark officials also believed Lease to Locals could spur other ways to make housing more accessible to Islanders. Residents can also qualify for rental assistance, and the town this week took a small step toward the long-awaited Peaked Hill Pastures affordable housing project. 

At a meeting Tuesday, the select board voted to ask the town’s affordable housing trust to allocate $50,000 to start the electrical engineering and design for the proposed development on Pasture Road. 

The town has for years considered setting up four homesite lots and building a 10-unit affordable housing complex there. The idea has run into several roadblocks and has made little progress since it first came up in 2018. 

Both members of the public and the select board saw asking for money to start work on the project as a way to get the project rolling, even if the development is still likely years away and has to overcome a funding gap. 

“It’s time to move this along because it’s been years,” said Marie Larsen, the chair of the board. 

If the town can get power, it would be one step closer to at least getting the homesite lots available.

“We have house sites that could be very minimal cost to the town up front,” said Allison Cameron Parry, a member of the housing committee. “I think that’s the best way to go, if we don’t take another bond, if we’re strapped for money.” 

Despite all the setbacks for Peaked Hill and affordable housing in Chilmark, Mr. Cook is optimistic about the direction that the town is going to address the long-standing housing problem. 

“We recognize that all these things take time and all of the issues [including] the demographic issues and density issues and preserving the rural aspect....All of those things come into play,” he said.