In what would be a first for Massachusetts, the town of West Tisbury is considering a way for homeowners to bequeath property to the affordable housing pool in exchange for a tax abatement based on its reduced value while they live.

At a joint meeting of the selectmen and affordable housing committee Tuesday, the two boards agreed to send the concept to town counsel for a legal review.

The plan is only in the exploratory stages, town officials stressed. If it were to go ahead, West Tisbury would be the first town in the commonwealth to adopt a policy allowing homeowners to convert property into affordable housing after they die in exchange for a tax break.

The concept was first introduced two years ago by Cynthia Aguilar. She joined forces with the Dukes County Regional Housing Authority, the quasi-governmental agency that manages affordable housing rental properties around the Island, in an attempt to place resale restrictions on her home to ensure it remains affordable in perpetuity after her death.

Ms. Aguilar went so far as to file a covenant on her Oak Lane home with the Dukes County registrar of deeds in June of 2008.

“The owner, intending to assist in addressing the severe shortage of affordable housing on Martha’s Vineyard,” the covenant reads, “wishes to impose a restriction on the title of the property so that it will be perpetually affordable.”

The covenant imposes a restriction on the title so the property can only be sold or transferred to someone with an income of up to 80 per cent of the Dukes County area median income as established by the U.S. Department of Housing and Urban Development. It also requires that the property be “conveyed on resale to an eligible purchaser at a discount of the property’s appraised fair market value.”

The covenant does not list an amount the home should sell for, but instead places restrictions on its resale price.

“The resale price shall not exceed an amount established so that a household ... would pay no more than 30 per cent of gross income for the total annual debt service for a mortgage loan or 90 per cent of resale price (including principal and interest, plus taxes, insurance and any homeowner fees).”

The covenant allows the home to be transferred to a family heir, who would be exempt from the income restrictions but still subject to the resale guidelines.

The covenant also states the property may be leased or rented only to those who qualify under the Dukes County Regional Housing Authority rental program guidelines, and to members of the owners’ immediate family.

Ms. Aguilar filed the covenant with the county in anticipation of receiving a tax abatement from the board of assessors, based on the reduced value of the house due to the affordable housing restrictions.

The assessors reviewed the documentation for Mr. Aguilar’s property at their regular meeting on March 9, according to the minutes of that meeting.

The minutes do not indicate the amount of the abatement.

On April 26 the assessors reviewed the property map with Ms. Aguilar.

However, the assessors later voted to deny Ms. Aguilar’s request for an abatement.

Principal assessor Kristina West refused the Gazette’s request for more details about Ms. Aguilar’s abatement request, saying the board could not legally release that type of information after an abatement is denied.

When reached by phone, Ms. Aguilar also declined to give details about the abatement and the covenant she filed at the registry of deeds. She said that she was disappointed the abatement was denied and was hopeful the town would embrace the concept of allowing a homeowner to place their homes into the affordable housing pool after they die.

“I still think it can work. If the town gets behind it, I think it can catch on. It can help solve the [affordable housing] problem. But that’s all I can really say,” she said.

Selectman Cynthia Mitchell, a member of the board of assessors when Ms. Aguilar first applied for an abatement, was cautious about the proposal. “I think the idea is worth exploration, or at least some early exploration,” she said. “There is no other town in the commonwealth that does this, so we should take a hard look at this before we approve it.”

So together the selectmen and affordable housing committee agreed on Tuesday to refer the matter to town counsel Ronald H. Rappaport for a review and legal opinion.

The affordable housing committee already has expressed an interest in the concept. The committee has proposed draft affordable housing conveyance regulations that have made the rounds of various town officials, including selectmen, who briefly discussed proposals at their regular meeting last week.

Unlike the covenant filed by Ms. Aguilar, which subjects her home to restrictions imposed by the Dukes County Housing Authority, the draft covenant policy would make properties subject to restrictions imposed by the affordable housing committee.

“This policy shall allow a private property owner to make the offer to designate his/her property as a restricted resale valued property in perpetuity as per the guidelines established by the WTAHC [West Tisbury Affordable Housing Committee],” the draft policy states.

The policy states that a property owner who wants to donate property as a restricted-resale-value property cannot exceed the Dukes County median income level of 140 per cent as established by the state Department of Housing and Community Development.

The policy also would require a deed rider (covenant) and mortgage lien of $1, held by the town, that must have the approval of the affordable housing committee and selectmen. The recorded resale value also would be subject to approval by both boards, and the application must be approved by a two-thirds vote at a joint meeting of both boards.

David Vigneault, executive director for the Dukes County Regional Housing Authority, said he hopes the town moves forward with the concept, whether it be in the form of new regulations, deed riders or partnership with one of the Island’s affordable housing groups.

“I think it’s a wonderful idea and a wonderful gift someone can make to the Island community. This would allow one person to help with a problem that affects all us,” he said.

But Mr. Vigneault conceded there was still much work to be done. He said Ms. Aguilar’s proposal hadn’t been properly vetted when the Dukes County Regional Housing Authority partnered with her to apply for the covenant two years ago. “It’s been made clear the last few months we never closed the circle. We never explored what was required on the town’s end,” he said.

“Her intentions are wonderful. I just think we put the cart ahead of the horse. I hope the town can see clear to give her a mulligan, because personally I still think this can work,” Mr. Vigneault added.