A $500,000 state grant that will help upgrade the Oak Bluffs sewer system will be a boon for a planned affordable housing development.
Gov. Maura Healey last week announced the funding given to the town as part of a $164 million push to boost economic development across Massachusetts.
The Oak Bluffs money will be put toward the pump station on Edgartown-Vineyard Haven Road near the Vineyard ice arena.
The new equipment will create enough sewer capacity to allow the planned Southern Tier affordable housing development to tie into the town sewer. The project, developed by the Island Housing Trust, proposed to bring 60 affordable units to the Island in two phases.
With the expected larger capacity, the project could now be built in a single phase and Island Housing Trust will not need an expensive innovative septic system for the property, said Philippe Jordi, executive director of the organization.
“It’s certainly a big deal,” Mr. Jordi said Monday. “Now we can do it in one phase, which will help make the project more economically viable.”
During the permitting process earlier this year, there was a question of whether the town would be able to bolster its sewer system to be able to handle the housing development by the time it was built. A full buildout to 60 units was also always going to be dependent on more sewer capacity.
The state grant fast tracks the process and could also help the nearby YMCA, which is planning a major expansion, as well the Island Elderly Housing village that operates with an aging septic system, said Patrick Hickey, Oak Bluffs wastewater facilities manager.
“It’s really good not just for Oak Bluffs, but for the Island,” Mr. Hickey said. “By them tying to sewer and us getting this grant, it will help keep construction costs down.”
Island Housing Trust has submitted a modified application to the Martha’s Vineyard Commission and the town, both of which had already approved the initial phase of the project earlier this year.
The new application will add another 15 units to the already approved 10 one-bedroom units, 30 two-bedroom units and five three-bedroom units. There are also some slight changes to trims and other details, said Rich Saltzberg, the MVC’s development of regional impact coordinator.
“This is not a surprise, the only thing that’s different than anticipated is it’s coming sooner,” Mr. Saltzberg said.
The new application was first aired before the commission’s land use planning committee last week.
The housing project will be restricted to residents with incomes between 30 per cent and 110 per cent of the county’s area median income, and there will be a local preference when the units are initially filled.
Island Housing Trust is in the process of picking a contractor for the project and hopes to nail down financing by spring.