The Sippican Woods affordable housing lottery was canceled on Tuesday night after only two eligible households submitted applications.

“The lottery was for nine units, so this happens happens a lot,” Brian Engler, vice president of lottery organizer SEB LLC said. “We run these things all the time and a lot of time they will be undersubscribed.”

Sippican Woods is part of the plan for 60 apartments and 36 homes approved five years ago to add “40B” affordable housing for residents.

The “40B” regulation allows the developer to bypass local zoning restrictions if a percentage of homes are sold or rented at below-market costs to people who meet the income requirements, and if a town has not met the state-required 10 percent minimum of affordable housing in its boundaries.

The lottery was never officially announced as canceled, and a few people waited at Elizabeth Taber Library for close to an hour.

“We reached out to everyone who inquired about the lottery,” Engler said. “I’m not sure why people would show up.”

Engler said SEB reached out to both the eligible and ineligible applicants about the lottery, and thinks that it’s possible at least one of the people who showed up to the canceled meeting had submitted the application past the deadline.

With the two eligible applicants getting first choice of units, that leaves seven more affordable homes in the development that are still up for grabs. Engler said now that the lottery has passed the homes are on a first come, first serve basis.

Each affordable home is approximately 1,600 square feet, will have three bedrooms and one and a half baths, and will cost $213,300. Homeowners Association fees are $45 a month.

The affordable homes will only be sold to households with incomes at or below 80 percent of the area median income. The maximum allowable income starts at $46,000 for a single person and goes up to $76,250 for six people.

There is a new application to be filled out on the SEB website. For more information go to www.s-e-b.com/properties/for-sale-developments/.