Town and county officials have worked out a deal with the developers of the Norse Pines subdivision on Route 6A in East Sandwich that will allow for the purchase of approximately six market rate homes in town to be resold as affordable housing units.

Rather then setting aside four lots within the development for affordable home sites as was negotiated with Cape Cod Commission to win its regional development permit, developers JCJ Inc. of west Boylston have agreed to pay the town $1.25 million.

This money which is the appraised value of the four lots, will be used to buy homes in various locations in town, which will then be resold at lower prices to qualified buyers,

"We get calls everyday by people who want to stay on the Cape, who want to stay in Sandwich, but cant afford to. Here's a way we can provide real ownership opportunity to some of these people," said Nancy B. Davison, director of the Consumer Education Department for the Housing Assistance Corporation (HAC).

HAC will be administering the program for the town.

"One of the nicest things about his program is that we're capturing existing market rate homes and turning them into affordable units," said Paul J. Ruchinskas, housing specialist with the Cape Commision.

Mr. Ruchinskas said HAC will likely be seeking homes priced between $300,000 and $350,000 and reselling them for between $140,000 and $150,000.

The idea for this program was first suggested by JCJ more then a year ago.

"We got a letter asking us to consider it," said Selectman William Diedering III, who worked with other town officials on the plan. "[JCJ] asked up what we were going to do with the lots once they gave them to us. For the town to actually develop houses on the lots would have taken a lot of time, money and work."

"Buying market units and reselling them as affordable is a much quicker, more efficient way of doing things and it's going to help more then just four families," said JCJ marketing and sales manager Keven M. Boyar.

But before any deal could be struck, the town and JCJ had to convince county officials that it was a good idea.

"At first I was a little skeptical," Mr Ruchinskas admitted. "We used to have a provision in our Regional Policy Plan that allowed developers to make a cash contribution toward affordable housing units in lieu of actual lots. But the money would often sit unused for awhile. After two, three, four years, as real estate values increased, towns were finding the money they had wasn't buying them much.'

But this plan was different, Ms. Davison said. "We're ready to get started finding homes and matching them with buyers right now," she said.

The commission voted two months ago to support the plan.

Mr. Boyar said the first two $625,000 payments was made to the town this week. The second is due in June.

Ms. Davison said she is pursuing county, state, and federal matching grants that could allow HAC to buy even more houses as part of this program.

"What I like most about this is thatit approaches the problem of affordable housing from a different angle," Selectman Thomas F Keyes said.

"It just makes sense," agreed Selectman Frank Pannorfi.

Ms. Davison said she already has a list of 8- pre-qualified homebuyers, including three from Sandwich.

Half of the homes purchased through this program will be earmarked for current Sandwich residents, people employed in town, or people who have parents or children living in town.

All of the homes will be deed restricted as affordable units in perpetuity, she said.