'Regional issue.' Eight Cape Cod towns turn former Orleans bank HQ into affordable housing

ORLEANS — When Cape Cod 5 announced plans to leave its headquarters on West Road in 2019, town officials sprang into action.

A feasibility study was conducted to investigate new uses for the 3.5-acre parcel on West Road adjacent to the Shaw’s shopping plaza.

"We really came to terms with them to say, 'Please don't put this on the market, we think we can make this into a housing project,'" said Select Board member Kevin Galligan.

Developer Pennrose, which was also behind the 65-unit Village at Nauset Green in Eastham, will transform the property into a multi-family rental development of 62 units.

Forty-seven units will be affordable and 15 will be workforce apartments at varying income levels including up to 30%, 60%, 80%, 100%, and 120% of the area median income. Nine units will be reserved for extremely low income households (below 30% of area median income), 43 units below 60% area median income, and 10 units below 120% area median income.

Area median income for a family of four in Barnstable County is $108,700. So, 80% of area median income in Barnstable County for a family of four is $86,950.

What does the project look like?

The former bank headquarters will be redeveloped with a new addition and two separate townhouses will be constructed.

Pennrose regional vice president Charlie Adams called the existing building "perfect for conversion to residential," noting there is already an elevator.

"When we first came in and looked at it, it was really interesting, it looked like an assisted living facility," said Adams. "I think that works, I think we can make that into housing. It looked like it was already housing."

On Wednesday, the sweeping construction site was buzzing. Units were beginning to take shape, as steel stud framing was installed on the third floor of the complex. This week, Dellbrook construction workers were expected to do a full roof replacement and begin laying down foundations for the town houses.

"It creates a community that is not one single look. It's going to have some diversity to it," said Galligan.

Amenities will include a community terrace, playground and seating, community garden and picnic area, townhome shared patio, walking trails, and 78 parking spaces as well as an indoor fitness center and club room.

"There's a huge demand obviously on the Cape for all kinds of housing. It's going to be family, we have family units available. We also tend to see more senior folks, that's been our experience with our other development in Eastham," said Adams. "The demographics here are pretty high on the senior side and there tends to be a higher level of seniors when we do a project like this than we might see in other parts of the state."

The project is slated for completion next year.

Since moving out, Cape Cod 5 has constructed its new operations center on Route 132 in Hyannis.

Orleans Affordable Housing Coordinator Marsha Allgeier previously told the Times that the last official state housing inventory showed 9.15% of Orleans' housing stock as affordable and that the town expects to cross the 10% threshold under 40B with the next update.

Where is funding coming from?

Federal and state tax credit financing by Massachusetts Executive Office of Housing and Livable Communities and $19.2 million in financing from MassHousing has been secured for the project, according to the town website.

The approximately $27 million project is also bolstered by a $2 million bond from the Orleans' Community Preservation Committee, said Affordable Housing Trust Fund Board chairman Alan McClennen, so it is paid back in 20 years instead of one.

All eight towns on the Lower and Outer Cape have also kicked in money.

"One of the most interesting parts of the project is the community support from the surrounding communities and how Pennrose worked with other towns to raise $800,000, bringing attention that this is not an Orleans issue. This is a regional issue, a community issue," said Orleans Select Board Chairman Michael Herman.

Cape Cod 5 reduced the sales price and sold the building at a discount, noted Adams.

"They could have gotten more money for the property and they sold it at a lesser price because they wanted to be committed to affordable housing," said Adams.

The Barnstable County Board of Regional Commissioners authorized a $1.5 million American Rescue Plan Act grant for the project which served as the final push to help close the funding gap.

"There's been so many moving parts to make this happen and a lot of phone calls," said Galligan of the overall project.

Zane Razzaq writes about housing and real estate. Reach her at zrazzaq@capecodonline.com. Follow her on X @zanerazz.

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This article originally appeared on Cape Cod Times: Former Cape Cod 5 headquarters to become affordable housing by 2025