MaineHousing Announces $9.3 Million In Subsidy To Create 125 Affordable Single-family Homes

AUGUSTA — MaineHousing is pleased to announce it has awarded $9.3 million in the latest round of financing subsidies for single-family homes developed under the Affordable Homeownership Program (AHOP).

Another 11 single-family home developments, and a total of 169 new affordable homes will be added for sale in Maine's real estate markets from Sanford to Bangor once completed. This includes 127 homes directly supported by AHOP and another 42 made financially viable in those developments because of the program.

Since its inception in 2023, AHOP has produced 325 affordable homes in 21 locations across Maine (see map).

The nearly $20 million invested from this program will have an estimated economic impact of over $100 million in single-family home sales. The creation of new housing also adds to the local property tax base and adds housing opportunities for middle-income earners.  

“This program is putting affordable homeownership back in reach for hundreds of middle-income households and is allowing them the opportunity to claim their own piece of the American dream here in Maine,” said MaineHousing Director Daniel Brennan. “This program’s popularity and success are a testament to Governor Janet Mills and the state’s elected leaders from all sides, who are making and maintaining their commitment to ease Maine’s housing crisis. This work is improving the quality of life for Maine residents while strengthening the state’s economy at the same time."

In all of Maine’s 16 counties, the median sale price for a single-family home is unaffordable compared to each county’s median income. Maine first reached this precarious tipping point in 2021, and since then, the purchase price of the typical family home has increased by nearly 60 percent.

Even as home prices have risen, increasing material costs and narrowing margins in the construction industry have led to a greater focus on larger and more expensive private housing production.  Since most affordable housing programs historically create rental housing, these market pressures contribute to an expanding affordability gap in Maine’s single-family real estate market.

AHOP counters these trends by incentivizing builders with subsidies in the form of forgivable loans, which directly increase their operating margins, provided they agree to offer a finished home at a price affordable to households earning up to 120 percent of the local median income.

“This program has made home ownership possible for hundreds of Maine people, from families buying their first house to retirees looking to downsize while remaining in the communities they love,” said Greg Payne, senior housing advisor in the Governor’s Office of Policy Innovation and the Future. “This adds to Maine’s housing supply while bolstering local economies, as part of Governor Mills’ commitment to address the housing crunch in partnership with the Maine Legislature.”  

These built-to-code homes include efficiency and design standards that enhance long-term affordability through energy savings, durability, and ease of maintenance.

This latest round of funding includes several highlighted developments, including 26 new affordable homes for sale in downtown Portland, 20 for Falmouth, 16 for Rumford, 14 for Bangor, 13 for Waterville, nine for Monmouth, eight for Boothbay, eight for Rockland, six for Kennebunkport, and five for Sanford.

See map and table below for additional details: