Maine shows the way on affordable housing, regional expert says
File Photo / Tim Greenway
Mainebiz caught up with Bill Shanahan before he retires as co-president of Evernorth at the end of June.
Bill Shanahan is co-founder and co-president of Evernorth, a nonprofit organization that provides affordable housing and community investments in Maine, New Hampshire and Vermont.
Based in Portland and Burlington, Vt., Evernorth has raised and deployed more than $1 billion in equity capital for affordable housing and built more than 15,000 affordable homes for low- and moderate-income people across northern New England.
After Shanahan retires from his leadership role at the end of June, he will stay on for several months as a senior advisor. Mainebiz caught up with him for his regional take on affordable housing and the climate for raising development capital.
Mainebiz: How does Maine stack up against Vermont and New Hampshire in terms of affordable housing supply and financing?
Bill Shanahan: It’s no secret that in all three states, the supply of affordable housing lags behind the demand. That remains a big challenge for all three states. Traditionally, Maine has done a really good job of setting aside resources to create and preserve affordable housing. The state HOME fund, various bond initiatives, leveraging the state Historic Credit Program and creating the state Housing Credit Program are a few examples of what Maine has done proactively and, in some respects, serves as an example for others.
MB: What do you see as the biggest impediment to affordable housing in Maine?
BS: There are a couple of things. The relatively scarce funding resources (both capital and operating resources) have always been an impediment, and a lack of understanding of both the full spectrum of what affordable housing means and the housing needs of residents. Land use restrictions also create barriers to affordable housing.
MB: At Evernorth, what projects are you most proud of and why?
BS: The crew at Evernorth uses the term 'Shanahan specials' — unconventional projects that use conventional funding, by stretching the limits of this funding, that reach to serve a resident population that might not otherwise be served.
MB: Can you give an example of a successful project?
BS: Freedom Place, at 66 State St. in Portland. In this case, a development partner knew the residents had few housing choices, and there are few funding programs to help. That developer made a commitment to stretch, and we felt the need to match his commitment.
MB: What’s your take on the current climate for raising capital for development?
BS: Raising capital is always a challenge, but it gets more challenging if investors are concerned about their liquidity and they have investment alternatives that compete with housing investments. Things had been stable for a while, less so now, and that instability means investors might sit it out or expect a higher return. which translates to fewer investment dollars for projects.
MB: Some analysts are warning of a crisis in the U.S. commercial real estate market. What are your expectations, including any potential impact on affordable housing?
BS: Rental housing, in particular affordable rental housing, doesn’t always track with what happens in the broader commercial real estate market. Part of this goes to the strong demand for affordable housing regardless of market fluctuations, and part of this goes to committed public funding that is such a big part of affordable housing. In the past, economic downturns have meant an uptick for affordable housing because it becomes the only game in town.
MB: Finally, any advice or words of wisdom to your successor?
BS: Nancy Owens and I now serve as co-presidents of Evernorth. At the end of June, Nancy will become the sole president. The time we have worked together has meant we have developed and share a vision for Evernorth where the organization continues to build on its strengths and expands its capacity to engage in broader community development activities. At its core, Evernorth is an intermediary, a facilitator ,or kind of broker that brings people and resources together to do a project or build a community or advocate for the importance of housing for individuals and communities.
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