Photo / Courtesy Courtesy 16 Mills Road Newcastle LLC
The project was made possibly by zoning changes that allow greater housing housing in the village area to address the need for more housing.
Updated: October 29, 2024
In Newcastle, construction is underway on 16-unit affordable housing project
Rendering / Courtesy 16 Mills Road Newcastle LLC
Two 8-unit buildings will be set close to the street, with front porches and parking off to the side.
Construction of 16 affordable apartments in downtown Newcastle got underway this week.
The project, at 16 Mills Road, is part of MaineHousing’s Rural Affordable Rental Housing Program.
“This is my first MaineHousing project, but I’ve done a number of small commercial projects in Newcastle with my company Ecological Development LLC as well as solar installations with my company Electric Sunshine LLC,” Rob Nelson, the project's developer, told Mainebiz.
Nelson said he’s also been involved as a volunteer in local planning efforts over the last 20 years.
The total project cost is just under $5 million.
Modular model
The project follows a model created by 55 Weston Avenue LLC, which built a $5 million development of 18 affordable homes in Madison with MaineHousing support.
Brian Eng, Sam Hight and Kara Wilbur, the partners behind the Madison project, cut the ribbon on the first phase of 55 Weston Ave. earlier this year.
Hight and Wilbur provided consulting for the Newcastle development. Like the Madison one, the Newcastle project will use modular construction, with buildings provided by Dooryard, a Maine-based modular dealer, and built off-site at KBS Builders Inc., a modular manufacturer in South Paris. Technical support was provided by the Genesis Community Loan Fund.
Dooryard and Nickerson General Contracting are providing project management support. Subcontractors include Hagar Enterprises, B&B Tree Service, Black Lab Electric, Fitzgerald Custom Concrete, Salt Bay Horticultural Services Inc., Keeley Crane, Holgerson Roofing, Provencal Plumbing, Merchant Flooring, On The Rise Heat Pumps, High Tech Fire Protection, Open Iot Group, Orion Property Professionals, Electric Sunshine and Louis Doe Home Center.
Zoning change
The Newcastle project is rooted in changes made to the Lincoln County town’s comprehensive plan and zoning code, a process that started more than 10 years ago, according to a news release.
The process resulted in a new comprehensive plan in 2018 and a new form-based zoning code in 2020, which together provided tools to guide development in ways intended to be beneficial to the town as a whole.
“The intent was to create a regulatory framework that reflects the values of our small New England town, which streamlines application and permitting processes, and encourages appropriate development across a range of geographic areas,” said Ben Frey, chair of the town's planning board.
One of the code changes was to allow greater housing density in the village area so that more homes could be built.
In 2023, Lincoln County also released an assessment showing a need for more than 1,300 housing units in the county over the next decade, including almost 900 affordable units, according to the release.
Rural rentals
The project was approved by the town in October 2023 and won a competitive process for financing from the MaineHousing Affordable Rural Rental Program in March.
It’s the first project from the program’s second round of funding to start construction, according to the release.
“This project would not have been possible without 20 years of local planning efforts, innovative state programs enabled by the governor and legislature, and private development efforts,” said Nelson.
Porches and trees
Two 8-unit buildings will be set close to the street, with front porches and parking off to the side. A row of street trees will be maintained along the front of the lot.
The buildings will be energy-efficient with electric heat pumps, solar arrays on the rooftops and Timber HP wood-fiber insulation, which is manufactured in Madison.
The buildings were designed based on historical models to fit into the community and use quality materials and finishes such as hardwood flooring, according to the release.
“Developments like 16 Mills Road Newcastle are exactly what was intended when the Rural Affordable Rental Housing Program was created,” said Mark Wiesendanger, MaineHousing’s development director. “Adding more affordable, middle-income housing with our partners in smaller cities and towns is an essential piece of expanding housing opportunities statewide and supporting local businesses.”
Rent guarantees
Under the MaineHousing program, the project guarantees that the rents will remain affordable for 45 years, and will be restricted to residents earning 80% of area median income or less.
“It’s difficult to retain the employees that we have when affordable housing is so limited,” said Pete Erskine, owner of Mexicali Blues in Newcastle.
“And as many other businesses in the same situation, we are trying to hire for multiple positions within our company. When people are interested in both our open positions as well as moving to the area there are no realistic options for housing.”
Gov. Janet Mills and MaineHousing launched the Rural Affordable Rental Housing Program in 2022 to tackle the state’s housing shortage by expanding the availability of affordable rental housing across rural parts of the state, by providing funding to build affordable rental housing from new construction, rehabilitation of existing housing, or reuse of existing buildings.
MaineHousing provides funding to developers for the development of smaller affordable rental housing projects from five to 18 units, in areas and at a size where traditional federal Low Income Housing Tax Credit projects are not generally feasible.
Eligible applicants are public housing authorities, community action agencies and nonprofit and for-profit housing developers, according to MaineHousing.
Lease rates must meet certain area median income qualifications.
County assist
The Newcastle project is one of five across Lincoln County to share $1.5 million allocated by the Lincoln County Regional Planning Commission in June 2023 to assist municipalities, housing nonprofits and developers to increase the amount of affordable units in Lincoln County.
The money came from the county’s share of American Rescue Plan Act funds. When completed, the five projects will add over 220 affordable units to the county's housing stock, said Emily Rabbe, the commission’s executive director.
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