Affordable Homeownership Program

In an ongoing effort to increase the supply of moderately-priced homes available to Mainers, the State of Maine is making $10 million available to facilitate the development of subdivisions with affordable single family homes.  The funding comes from the American Rescue Plan Act, through the Maine Jobs & Recovery Plan.  The Affordable Homeownership Program is intended to help lower the costs to developers building single-family subdivisions by providing zero percent interest, forgivable loans. This funding will help to offset the rising costs to developers for land acquisitions, labor, and materials.

Developers receiving Affordable Homeownership Program funding will be required to set aside homes in the subdivision as Affordable Homeownership Units. An Affordable Homeownership Unit is a lot with a new (never previously occupied), owner-occupied single-family home that will be sold to homebuyers who earn up to 120% of Area Median Income (AMI), and meets other criteria outlined in the program guide.


Proposals must meet the following criteria to be eligible for Affordable Homeownership Program financing:

  • A minimum of five (5) single-family homes in a subdivision must be designated as Affordable Homeownership Units, unless previously approved by MaineHousing. An Affordable Homeownership Unit is a developable lot with a new (never previously occupied), owner-occupied single-family home that meets the criteria outlined in the program guide.
  • The minimum forgivable loan amount is $300,000 and the maximum forgivable loan amount is $1,400,000 per affordable single-family housing development. The maximum forgivable loan amount per Affordable Homeownership Unit is $70,000 in Cumberland, Sagadahoc or York counties, and $60,000 in the remaining 13 counties of the State.
  • Developers participating in the Subdivision Program will not be allowed to access additional subsidy from MaineHousing, however homebuyers may receive subsidy for down payment and closing costs.

Eligible expenses for forgivable loans under the Affordable Homeownership Program include:

  • Reimbursement of land acquisition costs;
  • Site development soft costs, including construction loan interest;
  • On-site infrastructure costs such as installation of roads, water, electrical, sewer, storm drainage, retaining walls, retention ponds, sidewalks, and landscaping;
  • Construction costs.

Overhead, staffing, and other general operating costs are not eligible expenses under the Affordable Homeownership Program.


Contact Information

Applications are accepted on an on-going basis and will be reviewed on a first-come, first-serve basis as long as funding is available. For more information on program eligibility, priorities, and how to apply, download and review the Program Guide.  

Multifamily Development Info

[email protected]

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