Wenham AHT Action Plan

Enabled by Massachusetts General Laws Chapter 44, Section 55C, Affordable Housing Trusts (AHTs) allow municipalities to collect funds for affordable housing, separate them from the general budget into a trust fund, and use those funds to create and preserve affordable housing.

Unlike the larger municipal government, an AHT can act quickly and is better equipped to respond to housing development opportunities that arise outside of the municipalities' normal annual budgeting process. AHTs are governed by boards that are appointed by local leaders.

Wenham Town Meeting approved the creation of the Wenham Affordable Housing Trust in 2009. The AHT, made up of 5-7 Select Board appointees, makes recommendations on how to use AHT funds to the Select Board.

By state statute, AHTs can only use funds to create and preserve affordable housing. This can include, but is not limited to:

• Constructing new affordable housing units
• Rehabilitating existing buildings to convert to affordable housing
• Purchasing existing market rate residential units, rehabilitating if necessary for health and safety purposes, and reselling as affordable housing
• Establishing homebuyer assistance programs, such as down payment assistance or closing cost assistance
• Providing pre-development financing for new construction of affordable rental units
• and more!

Typically, Affordable Housing is defined as housing that is restricted for households making up to 80% of the Area Median Income (AMI). Income limits and AMI change every fiscal year. HUD’s income limits for FY2026 for a family of four in the Wenham Income Limit Area are as follows:

That said, different programs can use different definitions. Per state statue, AHTs have a bit more flexibility, and are able to support households making up to 110% of the Area Median Income (AMI).

A Housing Authority is a (state) government-created agency, whereas an Affordable Housing Trust is a (local) public financing tool, usually guided by a local committee. While both can fund and own housing properties, only Housing Authorities can administer federal and state housing choice vouchers (like Section 8).

The Wenham Housing Authority (WHA) is funded primarily through state and federal funds. WHA works in partnership with the Town but is not funded by the Town budget.* WHA owns and operates Enon Village which provides affordable housing for seniors and people with disabilities in our community.

*WHA can apply for Community Preservation Act (CPA) or AHT funding but generally the WHA is not directly funded by the Town’s budget.

Affordable housing trusts have an array of funding sources they may draw from, including:

• CPA Funds (CPA funds are the most common form of funding for AHTs in Massachusetts)
• Inclusionary zoning payments
• Negotiated developer payments
• HOME Program Federal Funds
• Other grant funds

Currently the Wenham AHT is funded by:

• CPA funds
• Rental income from two AHT owned-properties
• Private donations
• Fund Interest

• Purchased and rehabilitated two units, owned by the Trust and rented to income-qualified tenants. Currently rehabilitating a third unit that will be rented out after.
• Maple Woods, a 45-unit new rental project serving low to moderate income tenants, completed in 2023
• Hull Street, supported Habitat for Humanity in creating and selling two units to moderate-income owners