Affordable housing restriction a thorn in homeowner's side

Oct 23, 2013

A woman who bought a house in Onset with an affordable housing restriction on it is seeking to have the restriction removed. Selectmen say they are sympathetic to her financial situation, but aren’t willing to lift the restriction.

Courtney Arruda’s property, at 29 Carleton Street, was constructed as part of a “40B project.” In return for agreeing to construct and sell some units at below market rate to people whose income falls below a certain level, developers of 40B projects are allowed to avoid some zoning restrictions on the entire project. But the “deal” is that the “affordable” units retain the affordable restriction forever.

Arruda, who purchase the property in 2006 with the restriction. She now wants Selectmen to lift the restriction so she can sell the condominium at market rate.

"Up until a couple of days ago, Courtney Arruda had been handling this on her own," said her attorney, Steven Triffletti. "Primarily, this is because she cannot afford a lawyer."

Arruda appeared before the board a couple of weeks ago without an attorney, and was told by the board that it was unlikely the restriction would be removed. At that time, Town Counsel advised the board against it because, according to him, the restriction is in perpetuity.

Arruda maintains that when she bought the property she was assured by the Citizens Housing and Planning Association (CHAPA) that the restriction could be removed if she followed the proper procedure.

CHAPA is a nonprofit, the stated purpose of which is provide and preserve affordable housing and to provide research, advocacy and training to various communities throughout Massachusetts.

Arruda purchased the home in the spring of 2012 for $168,000, and has a buyer willing to purchase it for $172,000.

However, without removing the affordable housing restriction, she cannot sell it at market value. Arruda says she faces foreclosure and possible bankruptcy if she's unable to sell the house.

"Her position is that she has always carefully, and in good faith, followed the procedures outlined," by CHAPA said Triffletti.

Members insisted that they're unable to remove the restriction.

"I don't believe that we on our own have the authority to do this," said Selectmen Chair Peter Teitelbaum.

Arruda said that she is being told one thing by Wareham's attorney and another by CHAPA, and she wants the town to honor the promises made to her by CHAPA.

"I was given a letter of release from CHAPA that said I could sell it for anything," after the town's 90 day "right of first refusal" period.

"As you can see, there's some tension between the town and CHAPA," said Teitelbaum. "I feel bad that Miss. Arruda has been caught in this vise."

He added that the only time in his memory the board lifted an affordable housing restriction, it was for the sake of settling a lawsuit.

The board advised Arruda to have her attorneys meet with the town's attorneys again to try and find a solution.

"There clearly is some difference of opinion among the lawyers who have been looking at this," Triffletti opined.

Selectman Patrick Tropeano advised that she go before the Zoning Board of Appeals and ask to have the restriction lifted, but expressed doubt that her appeal would be successful.

"Frankly, I don't think they'll vote to remove the restriction," Tropeano said.