Waterworks renovation tapped several sources

Despite the Bangor Waterworks project’s $6.8 million bottom line, Shaw House Development Inc. managed to keep operating costs for its newly overhauled residential complex reasonable by cobbling together a range of resources from federal, state and city governments.

The renovation, which has taken more than a year to complete, was funded through federal low-income housing credits received from the Maine State Housing Authority and purchased by tax credit investors – combined with funding from the city, the U.S. Department of Housing and Urban Development and the Maine State Housing Authority, according to Jeff McDonnell, chairman of the Shaw House Inc. board.

“To support the goal of providing affordable housing to low-income adults, the financing of the project was structured in such a way as to not require the amortization of debt,” McDonnell said. “This has allowed for rents to be kept low in order to serve the target population.

“The budget is set so total gross rental income [projected at approximately $185,000 a year] should pay for operation and maintenance of the building,” he said.

“This doesn’t include the costs of the supportive services, which are being provided by Shaw House,” which will be covered by HUD and project funds, he said.

Rent payments for the single-occupancy efficiency units will be no more than $500 a month per tenant, McDonnell said.

To be eligible for a unit, applicants must have a household income of no more than $20,130 a year, McDonnell said.

Those who qualify can apply Section 8 housing benefits toward rent payments, he said.

Though tenants may not keep pets, they will be permitted to smoke in their respective units. Smoking is prohibited in the waterworks common areas, in accordance with state law, McDonnell said.

The first 11 units now are occupied. The remaining 24 units are slated to be ready for occupancy later this month, McDonnell said.