Courtesy / Hallmark Homes
A rendering of one of the potential housing models in the proposed Kennebunkport Heritage Housing Trust neighborhood.
Updated: October 30, 2019
Kennebunkport affordable housing project takes a step forward
Photo / Maureen Milliken
Sue Ellen Stavrand and Patrick Briggs, of the Kennebunkport Heritage Housing Trust, which hopes to build 25 affordable homes in the town by 2025.
By Maureen Milliken
A plan for more affordable housing in one of York County's most expensive communities is underway, as a project that could add five or six affordable houses moves forward.
The Kennebunkport Heritage Housing Trust hopes the project, which is under planning board review, will be the first in what could add 25 houses in the next six years.
The plan for the small subdivision on School Street, which is Route 9, was approved for a MaineHousing Affordable Subdivision Program loan Wednesday morning, which will help lower the cost of the houses by $20,000 or more per unit.
The subdivision would be one step toward solving a big problem in the coastal town of 3,600, where the median home price is $481,637 according to the trust. Many people who work in town or grew up there, can't afford to live there.
The homes built by the trust would cost between $220,000 and $245,000, the well-below-median price made possible because the trust will own the land, as well as the addition of the MaineHousing funding.
"It's about the future of the town," said Patrick Briggs, a selectman and president of the Kennebunkport Heritage Housing Trust.
But, he added, "It's not just a Kennebunkport thing." While every community is different "It's a model that can be replicated in the rest of the state to address the need for affordable housing."
The MaineHousing loans provide $20,000 per unit to developers of moderately priced single-family housing. There's a $2,500-per-unit bonus for units built in "high opportunity areas" — those with access to education, health care and jobs.
The loans are forgiven if all the units in the subdivision under the program are sold to those who meet income and other requirements within three years of being built, which shouldn't be a problem with the Kennebunkport housing. Sue Ellen Stavrand, also a member of the trust, said people are anxious to apply to own one of the homes.
Mainehousing revived the loan program in June after it had been dormant for a decade, a victim of the recession. Its aim is to spur developments just like the one proposed in Kennebunkport.
“Local municipalities and organizations know their communities best, and there isn’t a one-size fits all approach to solving Maine’s affordable housing challenges," MaineHousing Director Dan Brennan told Mainebiz Wednesday. "As a result, we are working to create programs that help finance innovative local solutions – especially in places with significant housing needs.
"We need more single family homes built at affordable prices throughout Maine and the Affordable Subdivision Program is part of that effort," he said.
Brennan told Mainebiz in June that the point of the program is not to have "sprawling developments," but smaller ones that fit the character of the community.
'A real neighborhood'
That's a goal, too, of the Kennepunkport housing trust, said Briggs and Stavrand in an interview with Mainebiz Tuesday. The houses will match the character of the houses around them.
The proposal calls for a mix of two-story and ranch homes, with a possible townhouse. The houses would have three bedrooms, two bathrooms, with about 1,200 to 1,400 square feet of living space. The number of residences on the 4.5-acre parcel will depend on septic approval, but it will likely be five or six.
Stavrand said one of the goals of the program is for the houses to feel like a neighborhood.
The houses also aren't being built to be renovated and flipped, Briggs and Stavrand said. The selling price must meet the affordable housing requirements.
The houses in the subdivision would be modular, from Hallmark Homes, of Topsham, and would be built by KSB Builders Inc., of South Paris.
"It will be permanent housing for town residents, not seasonal, not Airbnb," Stavrand said.
Briggs added, "We're focusing on what the town has historically needed," He said it's important for people to be able to live near where they work.
Ready for next school year
The next step is approval by the planning board, which is reviewing the plan. If the plan is approved by the board, the trust hopes to begin taking applications within a month. Construction would begin in the spring, with homes ready for owners to move in by the beginning of the next school year.
Those approved for housing would own the home, leasing the land, which is owned by the trust. While the houses may be bought by anyone who meets the income requirements and is approved for a mortgage, the trust hopes they'll appeal to families with children.
The income requirements are in line with what MaineHousing requires for its First Home Buyers program, though buyers aren't required to borrow through the program. The current income ceiling for single-family homes under MaineHousing's program for York County is $74,490 for a household of one or two people, and $85,650 for a household of three or more. MaineHousing also caps the cost of a home under that program; York County's maximum is $260,000.
If homeowners gets a raise or higher-paying job after buying the house, they can continue to live in it as long as they want to. But when they sell it, the sales price must meet the program's requirements and buyers must meet the income requirements.
Meeting a need
The plan to build affordable housing in the town began about three years ago, with a study commissioned by the board of selectmen.
The median price of a home in Kennebunkport had rocketed from $234,200 in 2000, and seasonal homes make up 43.8% of the town's housing stock..
Much of the need for more affordable housing is practical — 80% of the town's workforce commutes from outside of town; the median age of volunteer firefighters is 55, with 35% over the age of 60.
Stavrand said that with many public works employees living out of town, it can take an hour or more for them to respond to an outage caused by a storm or some other issue, if it's after hours.
But there are also issues that can't be quantified.
"It's about having a vibrant town," Briggs said. "We need people of all ages, all types of people to live here."
After selectmen commissioned the study, Briggs and Town Manager Laurie Smith took a field trip to Mount Desert Island to get a look at the Island Housing Trust, a 501(c)3 nonprofit. The trust's goal is to provide year-round workforce housing on the island, which is home to Bar Harbor and Acadia National Park. Since 2008, it has completed 36 home ownership projects.
The committee looked at that trust, as well as similar projects both in Maine and other states.
"The idea was to meet a need, but we didn't want to re-invent the wheel," Briggs said. The focus was looking at other programs and asking, "How do we meet our needs? How do we do it here?"
The committee's study led to formation of the Kennebunkport Heritage Housing Trust last December.
Photo / Maureen Milliken
The Kennebunkport Parks and Recreation skating rink site on Route 9 may soon become a neighborhood of affordable housing.
First, best option
The trust is independent, though it works with the town and gets town guidance, Smith, the town manager, is an adjunct member.
"We realized one thing we can do is take the cost of land off the table," in order to make housing more affordable Briggs said.
The town owns several tax-acquired parcels, many that came after the fires of 1947 that wreaked havoc across the state. Some aren't suitable candidates fr the program, Briggs said.
The site under consideration now was the best of the town's surplus land for the project. "It was the first and best option," he said, including being right down the street from the elementary school and town recreation area.
He said sites for future projects may be acquired in different ways. Sometimes resident leave the town property in their wills, or donate land. The trust is open to acquiring land through those means or others that come up.
"There are a lot of different options," Briggs said.
25 houses by 2025
The goal of the trust is 25 affordably priced houses by 2025. "That seems very, very achievable using the model we're creating," Briggs said.
The trust is still getting its feet on the ground. It's an all-volunteer operation, with no staff. Members look forward to soon moving into an office provided by the Kennebunkport Conservation Trust in its quarters on Gravelly Brook Road.
It also plans its first major fundraiser next week. The community music showcase and live auction will be at Vinegar Hill Music Theater in Arundel, and feature an array of local musicians who are donating their services, or providing them for a discounted rate.
The live auction features items that fit in with the mission of the trust, including naming rights for the entrance road to the subdivision. Other items are a ride on a town firetruck in the Memorial Day parade; a morning or afternoon on the boat of Chris Welch, a local lobsterman; a ride to school or work in a firetruck; "riding shotgun with Santa" on his boat during the Dec. 8 Prelude celebration; lighting the Dock Square Christmas tree on Dec. 14.
"We're doing everything we can do," Briggs said. "We need to build a base."
He said that the first project will help get the program going, but the trust is also expecting to evolve, and building the foundation, and being ready for opportunities that arise, is key to that.
He paraphrased a military quote he. "If you want to take advantage of an opportunity, you plan for it," he said. "You make sure your bags are packed, and you're ready."
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