$12.8 Million In State And Federal Affordable Housing Tax Credits Spurs $116 Million In Economic Activity For Maine

AUGUSTA— MaineHousing announced Wednesday it had awarded state and federal tax credits to seven affordable housing construction and rehabilitation projects that will help add and preserve 320 affordable rental homes in Cumberland, Oxford, Sagadahoc, and York counties.

The combined $12.8 million in tax credits will generate $73.4 million in equity from private investors. With an additional $8.4 million in subsidy and $34.5 million in loans from MaineHousing, the creation and preservation of these 320 rental homes will create approximately $116.3 million in economic activity for Maine.

“The addition of the State of Maine’s Affordable Housing Tax Credit in 2019 by Governor Mills and the Legislature is allowing MaineHousing to fund seven developments rather than only five,” MaineHousing Director Dan Brennan said. “The State credit added $4.6 million to what will be allocated allowing for 115 more rental homes than would have been possible without it.” 

MaineHousing has allocated $53.9 million of the State credit since its inception. The original legislation allows MaineHousing to allocate an additional $26 million before the legislation is set to sunset on December 31, 2028.

Highlights in the recent round of awards includes the rehabilitation of 24 affordable rental homes for families at Sun Valley Apartments in Mexico and several new affordable housing developments for both families and older Mainers that will be built in Bath, Portland, Biddeford, and Windham.

Additionally, another development headed by Youth and Family Outreach in Portland will not only add another 60 affordable rental homes for families on Cumberland Avenue but will also add a new 50-child daycare facility, meant to help those living in the building with adequate and affordable childcare. 

“These valuable federal and state tax credit resources help add more than 300 affordable homes to what is an already historically large affordable housing development pipeline for Maine,” Brennan said. “Our many partners across Maine along with MaineHousing’s development team have been producing at historic levels for more than three years now, thanks in large part to Governor Mills and the Maine Legislature. We need to keep this momentum going as we look to the next legislative session.”

Maine’s current development pipeline includes 3,383 units, scattered across 46 different municipalities.

“The seven proposals we are funding will make long-lasting and significant positive impacts on the communities in which they will be built,” MaineHousing Director of Development Mark Wiesendanger said. “These proposals will provide much needed affordable housing and so much more.”

See table below for more details: