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MaineHousing invests $6.78 million, generating $40 million in funds, to build affordable housing

Release Date: Jan 03, 2020

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,

South Portland

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.”

 

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