Affordable Housing Subdivision Program

Program Summary

In an ongoing effort to increase the supply of moderately-priced homes available to Mainers, MaineHousing providing funding to facilitate the development of subdivisions with affordable single family homes. The program is intended to help lower the costs to developers building homes in a subdivision by providing zero percent interest, forgivable loans. The loans will help reimburse developers for costs such as land acquisitions, site development, construction loan interest and on-site infrastructure development costs.

Developers receiving Affordable Housing Subdivision Program funding will be required to set aside at least five 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 or condominium that is eligible for financing under MaineHousing’s First Home Loan program.


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

  • A minimum of five (5) single-family homes or condominiums in a subdivision must be designated as Affordable Homeownership Units.
  • The minimum forgivable loan amount per subdivision is $100,000 and the maximum is $450,000. The maximum forgivable loan amount is $22,500 per Affordable Homeownership Unit within a high opportunity area and $20,000 per unit outside of a high opportunity area.
  • Developers participating in the Subdivision Program will not be allowed to access additional subsidy from MaineHousing, however homeowners may receive subsidy for down payment and closing costs.

Eligible expenses for forgivable loans under the Affordable Housing Subdivision 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.

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

More Info

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

Chris DeMerchant, Multifamily Underwriter 

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