The Will and the Way to Solve our Housing Crisis

Thanks to the millions of dollars flowing into our towns through the extension of the rooms tax to cover short-term vacation rentals, we now have the “way” to make significant progress in addressing our region’s housing affordability crisis. The question now before us is - do we have the will?

I am pleased to report that in the past year, several Lower Cape towns have decided to maximize these resources by adopting the highest local option rate allowed. All the Lower Cape towns, with the exception of Chatham, are now collecting the maximum 6% rooms tax from short-term rentals. Several Lower Cape towns have committed to directing this new revenue stream to solve their housing challenges. The Wellfleet Select Board voted to use 80% of the rooms tax revenue for housing, and the Town of Truro voted at their spring Town Meeting to place 33% of the new funds in a housing stabilization fund. Brewster is working on a plan to allocate 50% of the forecasted short-term rental revenue to the Brewster Affordable Housing Trust Fund. Orleans has dedicated all of its short-term rental tax to the new sewer system that will make the development of affordable housing much easier.

Why do we feel so strongly the rooms tax on short-term rentals should be used for housing? To quote Wellfleet Select Board and Housing Trust Member, Michael DeVasto, “It is rare to have a revenue stream created by a problem that can be used to help solve that problem.” Quite simply, short-term rentals have decimated our year-round rental market on the Cape. The income from renting out a home or condo for 18 weeks far exceeds the income generated from a year-round market-rate rental.

Lower Cape towns are now generating millions of dollars annually in revenue from short-term rentals and now have the capacity to borrow at very low-interest rates and make significant investments in solving our affordable housing crisis. But we must find the will to put these resources to good use and create housing that ensures we can build a diverse year-round community of people who can afford to live, work and thrive here.  

 –Sam Fuller, Owner, No End Fisheries

One of the key features of the Community Development Partnership’s (CDP), Business and Credit Programs is the micro-loan program. Our micro-loans support small businesses on the Lower and Outer Cape that may not qualify for a traditional bank loan. Those who are eligible can receive up to $50,000. The funds can be used for several purposes including operating expenses, purchasing equipment, business expansion, or providing cash flow. So far, in 2021, the CDP has provided $183,000 in loans to business owners including Sam Fuller, the owner of No End Fisheries.

Sam was born and raised on Cape Cod, spending his childhood in Brewster and Chatham. After graduating high school, he worked as a landscaper before taking a job as a fisherman. He spent the next ten years traveling back and forth between the Cape and Colorado, fishing in the summer, and working as a ski patroller in the winter. He returned to the Cape full time in 2016, and continued fishing while running a small sailboat charter business.

Jo Johnson, a lifelong resident of Truro and owner of Hairbenders Salon also in Truro, purchased her home from her family in 2011. Prior to buying the home, some renovations and remodeling took place, but many upgrades were still needed. Jo’s family originally acquired the property in 1993.

Jo became familiar with the Community Development Partnership (CDP) in 2017, while serving on the Board of Mass Appeal, (a non-profit organization in Wellfleet), and had thought about utilizing the CDP’s Housing Rehabilitation Program for her home. She received an application, but initially found it overwhelming and never completed it. But during the pandemic, Jo applied for a CDBG Covid-19 small business loan through our Business and Credit Program and decided to also move forward with her Housing Rehab application. “Getting my records together was overwhelming at first,” she says, “but after breaking it down, it wasn’t that bad.”

Carole Ridley had always been fascinated by the concept of community development corporations and the idea of being an entrepreneur. “There are so many people who have great ideas to start a business but they may not fit within the framework for traditional bank loans. Most start-ups need not just financial support, but help with business plans and technical assistance. And the Community Development Partnership offers that support.”

When Community Development Partnership (CDP) asked Carole to join the Board of Directors last April, she was thrilled. She had been a colleague of Jay Coburn, President and CEO of the CDP, and was a current member of the Advisory Council. Carole looked forward to the weekly communications from the CDP, which included information on their business program, updates on the affordable housing programs and interesting articles from the local papers.

Our Housing Rehabilitation Program is available to income-qualified residents of Eastham, Truro, and Provincetown. Qualified residents can receive up to $40,000 per household to pay for critical home repairs (like roofing and siding, electrical, heating, and plumbing work), lead paint abatement, and energy efficiency upgrades to keep their properties in good condition for the long term. And with local contractors doing the work, it helps keep our local economy strong.

Join the CDP and Laura Shufelt, Director of Community Assistance at Mass Housing Partnership, for our second Lower Cape Community Housing Partnership workshop.

This workshop is free and is designed for municipal officials and town staff including Finance Committees, Select Boards, Affordable Housing Trusts and Affordable Housing Committees, Finance Directors, and Town Managers and Administrators.

Last month we kicked off our Annual Lower Cape Community Housing Partnership with a free Housing 101 workshop. We discussed the basics of who needs housing, why housing is so hard to build, and what you can do to increase housing production in your town.

In case you missed it, you can watch the full workshop below!

Challenges of COVID in the Workplace: A Guide for Employers

The COVID-19 pandemic has created a number of new and unique challenges for small business owners.

The CDP has partnered Karyn Rhodes, Vice President at Complete Payroll Solutions, to give you the information you need to manage your business

Topics include:

This workshop is free but registration is required.

Learn to optimize Facebook and Instagram to market your brand and reach new customers with Shayna Ferullo, owner of Tidal Marketing Co.

Topics include: Creating an effective profile; tools and uses within each platform; the latest trends; content planning and posting strategies; and photography tips and tricks

This is a FREE webinar!

The Community Development Partnership and SCORE of Cape Cod are hosting a free three-part marketing workshop series.

Over the course of three sessions, our experts will cover marketing basics and social media marketing on Facebook and Instagram. Whether you’re a beginner or need a refresher, these workshops are perfect for you.

Facebook Marketing - Thursday, December 2nd, 9:00 - 10:30 AM

With Dale Shadbegian, Cape and Plymouth Business

Marketing - Tuesday, December 7th, 9:00 - 10:30 AM

With Jean Mojo, SCORE Mentor

Instagram Marketing - Thursday, January 20th, 9:00 - 10:30 AM

With Dale Shadbegian, Cape and Plymouth Business

After each session, the CDP staff will host a 30-minute Zoom call to answer questions, share ideas, and discuss how to apply what you learned to your business.

The CDP continues to offer all trainings, workshops, technical assistance sessions, and appointments virtually.

We remain committed to serving our business clients and our community. Staff is working both remotely and from the office. While we are not taking in-person meetings at this time, we will continue to meet with clients via phone or video conference.

If you or someone you know is interested in receiving weekly updates from our Business and Credit Program that are targeted to small businesses, please sign up for our Inside Scoop.