It took a team to preserve 24 units of affordable housing in Orono.
An apartment building at 95 Main St. was saved thanks to financing and an ownership transfer negotiated by the Genesis Community Loan Fund, the Housing Authority of the City of Old Town and the U.S. Department of Agriculture.
Main View Apartments was built as a school in 1914 and converted into housing in 1988. It offers affordable units for older residents, but was in jeopardy when the owner looked to sell the property.
Ownership of the property was transferred to a nonprofit ownership structure and will be overseen by the housing authority.
Genesis financing supported the authority’s purchase of the property, as well as repairs and upgrades to the quality and accessibility of the apartments.
The partners took advantage of 2020 state affordable housing tax credit.
“Our success transferring these properties to nonprofit ownership keeps them affordable. Doing this reflects the commitment Genesis shares with other leaders across Maine who are working to protect affordable housing and ensure people’s long-term security in safe, affordable homes,” said Liza Fleming-Ives, executive director of Brunswick-based Genesis.
“It’s essential to bring together resources and partners to preserve affordable housing, especially in rural communities where there are fewer rental housing options and where construction of new affordable housing has been limited,” she added.
Orono, which is in Penobscot County and is home to the University of Maine, has a population of 12,253, according to the U.S. Census. The city has a per capita income of $29,901 and a poverty rate of 26.8%.
A partnership
Genesis has worked with the USDA for several years to assist with the transfer of privately owned housing in Maine that tenants can rent affordably because the owners hold mortgages with the USDA Rural Development Section 515 program.
Many of these properties are at risk of leaving the program as owners age and mortgages mature. Leaving the program threatens the federal rental subsidy. Some 7,600 apartments in Maine are at risk of becoming unaffordable if they do not stay in the Section 515 program, according to Genesis.
The Orono transaction demonstrates the ownership transfer model’s potential as a solution for preserving affordable rental housing in Maine, the city’s top public housing official said.
“Our goal has been to acquire this property, preserve its affordability, and address repairs and system upgrades,” said Laurie Miller, executive director of the Housing Authority of the City of Old Town. “This marks our third acquisition of a USDA-subsidized property aimed at supporting residents who are at risk of losing affordable housing. With many nearby apartments being rented at significantly higher rates, maintaining affordability in this building is essential for the current tenants.”
Lisa Tissari, a resident of 95 Main St., said she was “relieved” by the deal to save the apartment building.
“I had thought about the frightening possibility of unaffordable rent increases if ownership changed,” Tissari said. “I know from volunteering with organizations helping people who have been unhoused that that might have become our reality, and that was terrifying, especially since many of my elderly neighbors have health and mobility issues.
“Instead, this purchase has saved us from that fear and uncertainty, and it also creates a way for important delayed building repairs to be made.”
Gov. Janet Mills, who signed the tax credit into law in 2020, said the Orono project demonstrates the viability of partnerships like that of Genesis and the USDA.
“This partnership will help older Mainers in Orono to comfortably and affordably stay in their homes, and ensure that these units remain affordable for Maine people for decades to come. It’s exactly the type of project that I had in mind when I signed the Maine Affordable Housing Tax Credit Program into law just four years ago,” said Mills.
“I applaud the Genesis Community Loan Fund, the Housing Authority of the city of Old Town and the U.S. Department of Agriculture for making this important preservation project possible.”