The nonprofit Island Housing Trust reached its $3.05 million fundraising goal to build nine units of median-income housing in the Hancock County town of Mount Desert.
The money is for the third phase of the trust’s Ripples Hill neighborhood in the Mount Desert village of Somesville. The homes are designated for nine year-round families who live, work and attend school on Mount Desert Island.
The goal is to have the nine houses completed by the end of this year.
The capital campaign received donations from 79 individuals, local businesses, foundations, grant funders and the town of Mount Desert, whose residents approved $470,000 to support sewer and road infrastructure for the project.
Phase 3 expands the Ripples Hill neighborhood by adding nine homes to the nine that were previously built.
“This achievement speaks volumes about the strength of community support and the ongoing need for year-round workforce housing,” said Sherry Billings, the trust’s executive director.
Bridging budget gap
Ripples Hill was initiated in 2006 on land, off Beech Hill Road, donated by the town of Mount Desert. The first two phases created nine energy-efficient homes for year-round residents working on the island.
The trust broke ground on Phase 3 in August 2025 and began accepting homeowner applications.
Originally projected to cost $2.4 million, rising construction costs drove up the third phase to $3.05 million.
To help bridge the budget gap, an anonymous foundation issued a challenge grant, pledging to match $350,000.
The resulting $700,000 brought the campaign within reach of its goal.
In the meantime, Diana Davis Spencer and Abby Moffat of the Maryland nonprofit the Diana Davis Spencer Foundation visited Ripples Hill and invited the trust to submit a grant proposal. The proposal resulted in a $400,000 grant from the nonprofit.
Spencer is a philanthropist with ties to MDI. Her foundation previously supported the trust with a lead gift to its Coming Home Campaign, which included the Jones Marsh neighborhood in Bar Harbor, according to a news release.
In addition to completing the Phase 3 fundraising goal, the Spencer grant added $200,000 to the trust’s opportunities fund, which allows the trust to act quickly when new opportunities arise to acquire land or affordable homes. Unlike long-term planned developments such as Ripples Hill, the opportunities are often time-sensitive and unpredictable.
