MAINEHOUSING INVESTS $30.4 MILLION, GENERATING $74 MILLION IN FUNDS, TO BUILD AFFORDABLE HOUSING

Released: Mar 16, 2021

For the first time, MaineHousing has awarded Maine’s new state-level affordable housing tax credits to support the construction of affordable housing.

MaineHousing allocated Maine Affordable Housing Tax Credits and federal Low Income Housing Tax Credits (LIHTC) to build or renovate nine affordable housing developments in Maine. The combined $26.2 million in tax credits will generate over $69.8 million in equity from private investors. With an additional $4.2 million in subsidy from MaineHousing, approximately $74 million of funding will create or preserve 430 housing units. Of those units, 388 will serve households at or below 60% of the area median income.

“We knew when I signed this bill into law last year that Maine needed more affordable housing options, and the pandemic has only further underscored that need,” said Governor Janet Mills. “I am glad to see these important projects moving forward. As a result, more Maine people will have a safe place to rest their head at night, a place where they can care for their family, get ready for work, and live with dignity and comfort – a place where they can say to their loved ones ‘Welcome Home’. That is what Maine is about.”

MaineHousing selected nine developments from 15 proposals requesting nearly $12.6 million in federal tax credits. Developments that received funding include the renovation of the historic Moses and Columbia Blocks in Bath, the demolition and new construction of 45 units of public housing in Portland, and 40 new units in Skowhegan.

“As we’ve seen throughout the last year, the COVID-19 pandemic has driven home the significant need for affordable housing here in Maine,” said Daniel Brennan, director of MaineHousing. “Housing is critical to the overall well-being of Maine’s people and communities. The combination of the new Maine Affordable Housing Tax Credits and the federal Low Income Housing Tax Credits have substantially contributed to the growing momentum we need to increase our affordable housing supply across the state.”

MaineHousing approved the following projects for tax credit allocation:

Development & Location	Developer	Units & Type	Federal Tax Credits Awarded	Maine Tax Credits Awarded	Est. Total Tax Credit Equity
Oak Grove Estates, Bath	Realty Resources	34 affordable units for families	$415,958	N/A	$3,493,698
Martel School Apts., Lewiston	Lewiston Housing / Avesta	44 affordable units for older adults	$880,000	N/A	$7,655,234
Front Street Re-Development II, Portland	Portland Housing Authority	45 affordable units for families	$900,000	N/A	$7,649,235
The Uptown, Bath	The Szanton Company	42 affordable units for older adults. Mixed income, mixed use; historic	$840,000	N/A	$7,223,278
Senior Living at the Marketplace, Augusta	Tim Gooch	42 affordable units for older adults	$840,000	N/A	$7,055,294
Middle Street Apts., Portland	CHOM	50 affordable units for older adults	$481,493	$4,814,930	$8,666,470
337 Cumberland Avenue, Portland	Portland Housing Authority	48 affordable units for families. Mixed income, mixed use	$610,365	$6,103,650	$11,169,158
Valley Street Apts., Portland	Avesta Housing	48 affordable units for families; mixed income	$503,479	$5,034,790	$9,062,191
Mary Street Apt. Homes, Skowhegan	KVCAP	40 units of affordable housing for families; historic	$435,281	$4,352,810	$7,798,127

"Maine needs more affordable housing options. I am thrilled to see this program move from an idea to Maine law to investment and soon bricks and mortar," said Speaker Ryan Fecteau of Biddeford, who sponsored a 2019 bill that paved the way for this project’s funding. "In these affordable homes people will raise their families and older Mainers will age with dignity. I could not be happier to see this program come to life. I hope what we’re accomplishing in Maine becomes a model for the nation."

“I am delighted to see this moving forward,” said Senator Matt Pouliot of Augusta who co-sponsored the bill with Speaker Fecteau. “The new state tax credit is an excellent example of a bipartisan approach to solve Maine’s affordable housing challenges. I look forward to seeing more Maine people find an affordable place to call home because of this initiative.”

MaineHousing is the agency that allocates all federal housing tax credits in Maine. Each year, MaineHousing allocates these federal tax credits using the Qualified Allocation Plan (QAP). Applications are scored on a 100-point scale outlined in the QAP. Scoring criteria include the proposed development’s access to amenities, services, and transportation and financial feasibility of the development.

The Maine Affordable Housing Tax Credits were signed into law by Governor Janet Mills in February 2020. MaineHousing allocated the state credits using the rule its Board of Commissioners adopted in October 2020.

“We were able to finance more units thanks to the Maine Affordable Housing Tax Credit,” Brennan said. “We’re pleased with the investment the state tax credits are already generating – and look forward to seeing these developments become communities Mainers can call home.”

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MaineHousing has helped Maine people own, rent, repair, and heat their homes since 1969. MaineHousing is an independent state authority created to address the problems of unsafe, unsuitable, overcrowded, and unaffordable housing. MaineHousing is a $1.8 billion financial institution with a staff of over 170 people. MaineHousing assists more than 90,000 Maine households and invests more than $300 million in the Maine economy annually. For more information, visit mainehousing.org.