MaineHousing Invests $6.78 Million, Generating $40 Million in Funds to Build Affordable Housing
MaineHousing has awarded $3.78 million in Low Income Housing Tax Credits (LIHTC) to five affordable housing projects in Maine. The tax credits will generate over $37 million in equity from private investors. Combined with an additional $3 million in subsidy from MaineHousing, more than $40 million of funding will create or preserve 317 housing units. Of those units, 275 will serve households at or below 60% of the area median income.
The five developments were selected from 15 proposals requesting over $10.3 million in federal LIHTC. Developments that received funding include the first phase of a historic textile mill redevelopment in Waterville and 100 units of public housing preservation in Portland.
“One of the key solutions to Maine’s affordable housing challenges is to build and preserve more rental housing that Maine people can afford,” said Daniel Brennan, Director of MaineHousing. “These tax credits are among the main drivers of affordable housing creation in Maine – and are a great example of the public-private partnerships we need to address Maine’s significant housing needs.”
MaineHousing is the agency which allocates all federal housing tax credits in Maine. Each year, MaineHousing allocates these federal tax credits through a process called the Qualified Allocation Plan (QAP). Applications are scored on a 100 point scale outlined in the QAP, which is updated annually. Scoring criteria include the proposed development’s access to amenities, services, and transportation and financial feasibility of the development.
The following projects were approved for federal tax credit allocation:
|Development & Location||Developer||Units & Housing Type||Tax Credits Awarded||Estimated Tax Equity|
|West End Apts. II,
|Avesta Housing||40 affordable units for families. Mixed income, mixed use.||$800,000||$7,039,296|
|Washington Gardens, Portland||Portland Housing Authority||100 affordable units for older adults, persons with disabilities, victims of domestic violence, homeless displaced, and others with special housing needs||$450,000||$8,139,186|
|Front Street Re-Development I, Portland||Portland Housing Authority||48 affordable units for families; mixed income||$812,500||$7,230,527|
|Lockwood Mill I, Waterville||North River Company||47 affordable units for families. Mixed income, mixed use.||$937,079||$8,070,248|
|Newton Place, Bangor||Penquis CAP||40 affordable units for older adults and victims of domestic violence||$782,831||$6,653,399|
“The applications we received were strong, but we are limited by the amount of tax credits available to allocate in Maine,” Brennan said. “The other projects are placed on a waiting list and we’ll look to fund as many as possible with our available funding in the very near future.”
MaineHousing has helped Maine people own, rent, repair, and heat their homes since 1969. MaineHousing is an independent state authority created to address the problems of unsafe, unsuitable, overcrowded, and unaffordable housing. MaineHousing is a $1.8 billion financial institution with a staff of over 160 people. MaineHousing assists more than 90,000 Maine households and invests more than $300 million in the Maine economy annually. For more information, visit mainehousing.org.