Five housing development projects awarded $3.8M in low-income tax credits
Photo / Tim Greenway
Dana Totman, president of Avesta Housing, Quang Nguyen, owner of Le Variety on Westbrook Street in South Portland, and Tyler Norod, project coordinator for Avest in 2018 in Le Variety, which was torn down to make room for Avesta's 64-unit affordable housing project on Westbrook Street, which will incorporate the store. The project was awarded low-income tax credits by MaineHousing, one of five in Maine announced this week.
Five major development projects across the state for both new-build and redeveloped affordable housing will share $3.78 million in Low Income Housing Tax Credits awarded by MaineHousing this week.
The projects are the West Elm Apartments, in South Portland; Washington Gardens, in Portland; Front Street redevelopment, in Portland; Lockwood Mill renovation, in Waterville, and Newton Place, in Bangor. They were were selected from 15 proposals representing $10.3 million in federal tax credits.
“One of the key solutions to Maine’s affordable housing challenges is to build and preserve more rental housing that Maine people can afford,” said Daniel Brennan, director of MaineHousing. “These tax credits are among the main drivers of affordable housing creation in Maine — and are a great example of the public-private partnerships we need to address Maine’s significant housing needs.”
The tax credits will generate more than $37 million in equity from private investors, according to MaineHousing, the state's housing authority. Combined with an additional $3 million in subsidy from MaineHousing, more than $40 million of funding for the projects will create or preserve 317 housing units, the housing authority said. Of those units, 275 will serve households at or below 60% of the area median income.
"The applications we received were strong, but we are limited by the amount of tax credits available to allocate in Maine,” Brennan said in a news release. “The other projects are placed on a waiting list and we’ll look to fund as many as possible with our available funding in the very near future.”
The federal program gives a tax credit to developers who reserve a portion of the rental units in the project for lower income renters. MaineHousing allocates the tax credits, and developers sell it to corporate investors. The money raised is used as equity in the rental housing project.
MaineHousing allocates all federal housing tax credits in Maine, which it does through a Qualified Allocation Plan. Applications are scored on a 100-point scale, which includes the proposed development’s access to amenities, services, and transportation and financial feasibility of the development.
2020 low-income tax credit projects
The West End Apartments II project, at 586 Westbrook St. in South Portland, is being developed by Avesta Housing. Of its 64 units, 40 will be affordable family units.
It’s a $7 million mixed-use development, and got $800,000 in low income tax credits. The five-story building, designed by Kaplan-Thompson Architects, will also include the Le Variety store, which was on the site where the project is being built.
Washington Gardens, at 577 Washington Ave., is a Portland Housing Authority property that’s being renovated and expanded, providing 100 units for older adults, people with disabilities, victims of domestic violence, and those who are homeless, displaced or have other special housing needs. The $8.1 million project will use $450,000 in tax credits.
Front Street Redevelopment I, at 65 Front St. in Portland, is another Portland Housing Authority renovation project. Once completed, the mixed-income development at 34 West Presumpscot St. will have 48 affordable units for families, and an overall 65 units. It’s a $7.2 million project and will use $812,500 in tax credits.
Lockwood Mill I, in Waterville, being developed by the North River Co., is part of a much larger mixed-use development at the 142,000-square-foot Lockwood complex.
Overall, developers plan 132 market-rate and workforce apartments in the former mill buildings at 6 and 8 Water St. Of those, there will be 47 affordable units for families, with 65 as market rate. The $8 million phase of a project that’s expected to top $20 million will use $937,079 in tax credits.
Newton Place, at 485 Grandview in Bangor, is a Penquis CAP project. The 40 affordable units for older adults and victims of domestic violence comprise the entire $6.6 million project. It will use $782,831 in credits. They’re part of an overall 79-unit project that’s already under construction.
The $7 million first phase of the development, Stephen B. Mooers Village, is being built by Benchmark, of Westbrook, and the architect is Merritt Associates, of Eddington.
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