The Harwich Affordable Housing Trust faces a significant financial and legal dilemma regarding its ownership of 265 Sisson Road, as unbilled maintenance costs and insurance overlaps revealed a taxpayer-funded subsidy for the Harwich Junior Theatre. During his first meeting as Chair, Michael opened the session by acknowledging the leadership transition from former chair Larry Ballentine before diving into a complex report from Town Administrator James McGrail and Town Counsel Lisa Mead regarding the theatre’s lease. McGrail reported that between FY23 and FY26, the town’s general fund paid approximately $35,000 for building maintenance, including a new fire alarm and carpentry, which were never billed back to the tenant. McGrail noted, Our insurer was very concerned when they realized the building had been deeded to the Trust. We need to separate that on the policy.

The legal status of the property as an Affordable Housing Trust asset creates a statutory conflict, as the Trust is mandated to use its funds solely for housing purposes. While the Junior Theatre pays a lease rate of 2% of its gross revenue—amounting to roughly $2,300—the costs to maintain the facility far exceed the income. Member Jeff warned of the potential for being out of compliance with state law, asking, If we are losing money on the proposition, are we out of compliance with the trust documents? Attorney Lisa Mead confirmed this concern, stating that if the Trust is losing money on a non-housing asset, it is not in compliance with its specific statutory purpose. Member Bob Spencer presented a list of alternatives for the site, including returning the property to the town or issuing a Request for Proposals (RFP) for a developer to build housing while assuming the theatre lease.

Nina Schuessler, the Producing Artistic Director for the Cape Cod Theatre Company/Harwich Junior Theatre, expressed gratitude for the transparency of the discussion while clarifying the theatre's financial reporting status. Our operating budget is under a million dollars, so we are only required to have reviewed financials, not a full audit, Schuessler explained, while also questioning why both the town and the theatre appeared to be paying for overlapping liability insurance on the same structure. Chair Michael declined to immediately accept past rental payments from the town, citing a desire to avoid the immediate burden of maintenance expenses. Nowhere do I see the Trust's mission supporting being a landlord for a theater, the Chair said, adding that he intended to meet with the Select Board to resolve the landlord-tenant arrangement.

The Trust also addressed a series of upcoming Town Meeting articles, including Article 36, which requests $650,000 in Community Preservation Act (CPA) funding. Member Brendan alerted the board to Article 52, a citizen petition that would require every Trust funding decision to return to Town Meeting for approval. Brendan described the petition as a threat to the board’s agility, noting it tries to turn the Trust into the CPC by requiring every funding decision to go back to Town Meeting, which stops our ability to move fast. The board also reviewed Article 51, which seeks to expand the Trust to six members and allow the body to elect its own chair. Regarding the 60-unit Penrose housing project at 456 Queen Anne Road, the Trust reached a consensus to draft a formal letter of support for state funding as the project heads to the Zoning Board of Appeals.

In a move to correct administrative gaps, the board addressed a Freedom of Information Act (FOIA) request that revealed missing executive session minutes from 2021 and 2022. Motion Made by B. Spencer to approve a reconstructed record of missing executive session minutes for submission to the Town Clerk. Motion Passed 5-0. Member Brendan noted that former chair Don Howell was consulted during the reconstruction process to ensure the accuracy of the records, which primarily concerned land acquisition for the Queen Anne Road property. The Trust also moved to modernize its record-keeping, with Member Brendan suggesting a shift to digital platforms like Dropbox to prevent future data loss. We need to digitize this so we aren't chasing paper from 2006 or 2019, he said.

The board received a sobering update on the Rental Assistance Program (RAP), which currently serves eight families but has 14 households languishing on a waiting list due to funding shortfalls. Member Claudia noted that while Harwich’s budget for the program is roughly $50,000, neighboring communities allocate significantly more. If we added 10 more families, they could fill that need immediately, she told the board. Chair Michael directed Claudia to prepare a proposal to expand the program once the anticipated $150,000 in CPA funds becomes available following Town Meeting. Housing advocate Brianna Powell offered to coordinate with town staff to find a digital management platform for the Trust’s various projects.

Technical updates on "paper roads" concluded the meeting, as Town Planner Christine Flynn clarified that Basset Lane meets the 22-foot minimum standard for a major roadway but would require extensive MassDOT permitting to connect to Route 124. This access remains vital for the "upper fields" of the Marceline property to prevent the land from becoming landlocked. Bob Spencer provided a status update on several active projects, noting that the Bell's Neck lottery is complete and the West Harwich Square funding is approved. However, the Chair noted a recent error at the Zero Depot Road site, where engineers accidentally performed a perk test on a neighbor's property. We unfortunately perk tested the neighbor's yard, the Chair admitted, noting he had issued apologies to the affected property owners.