Maine given $2.1M for affordable housing

BOSTON – The Federal Home Loan Bank of Boston awarded $2.1 million in grants, loans and interest rate subsidies to fund 127 units of affordable housing in Bangor, Perry, Harpswell and Portland.

The four Maine projects are among 25 in New England that, combined, received more than $16 million in financial assistance from the bank’s Affordable Housing Program. The money will help create or preserve 674 residential units for very low-, low-, and moderate-income households.

In Bangor, Volunteers of America, Northern New England Inc., was awarded a $400,000 grant for Bangor Senior Housing, a 54-unit elderly housing complex planned for a parcel at the corner of Harlow and Curve streets.

The complex is designed to help seniors age in peace, with 35 units for very low-income households and 19 for those earning less than 60 percent of the area median income. One market-rate unit will be reserved for a live-in manager.

A range of support services, including transportation and financial planning assistance, will be provided to tenants. The building has been designed to meet MaineHousing’s green building standards. Bangor Savings Bank is providing construction financing. HUD 202 and Low Income Housing Tax Credit equity will cover the bulk of the project’s funding.

In Perry, the Passamaquoddy Housing Authority was awarded a $493,414 grant and subsidy and a $500,000 advance to construct five buildings containing 20 rental units at its Pleasant Point Passamaquoddy Homes II project.

The tribe is donating the use of the land through an extended lease. The units will be rented to 14 very low-income and six low-income households, with two additional market-rate units. Five units are earmarked for homeless households.

Residents will receive support services including job training, transportation, managed health care and day care.

The initiative will create a residents council and a neighborhood crime-watch program. Bangor Savings Bank will provide construction and permanent financing through the AHP-subsidized advance. Other funding sources include Low Income Housing Tax Credits, MaineHousing and sponsor equity.

Other projects that received funding were:

. Harpswell: The Greater Brunswick Housing Corp., $351,000 grant for 13 energy efficient single-family homes for low- to moderate-income first-time home buyers. The member bank is Bath Savings Institution. Also providing funding are MaineHousing and the Cumberland County Community Development Block Grant Program.

. Portland: Avesta Housing, $400,000 grant for 40 energy-efficient supportive housing units for chronically homeless women. Avesta will partner with the city and the Preble Street homeless shelter to provide a variety of services, including managed health care and GED training.

Seventy-five percent of the annual operating costs are being funded by the Continuum of Care Supportive Housing. MaineHousing is the major funding source and TD Banknorth will provide construction and permanent financing.

The bank’s mission is to support the residential mortgage and community development lending activities of its members, which include more than 450 financial institutions across New England.

Each year, the bank sets aside 10 percent of its net profits to provide grants and subsidized, below-market-rate loans through the program.

Member financial institutions work with local developers to apply for AHP funding, awarded twice a year through a competitive scoring process.

To accomplish its mission, the bank uses private sector capital to provide members and other qualified customers with reliable access to low-cost wholesale funds, liquidity, a competitive outlet for the sale of loans, special lending programs, technical assistance and other support.