Mainebiz

V O L . X X V I I I N O. I I I F E B R UA R Y 7 , 2 0 2 2 6 Home sales ease, but prices still high For the sixth straight month, the number of sales of existing single- family homes in Maine dropped during December, but prices continued to climb amid limited inventory and steady demand. Sales volume dropped last month by 12.65%. Prices increased to a median of $303,000, up 12.22% percent from the year-ago period, accord- ing to Maine Listings. e sales in Maine mirrored the national and regional trends, with the National Association of Realtors report- ing a 6.8% dip in December sales of single-family existing homes. Prices, however, rose 16.1% over the past year to a national median sales price of $364,300. Regionally, December sales in the Northeast declined 15.7% and the regional MSP reached $384,600, a rise of 6.3%. For all of 2021, single-fam- ily existing homes across Maine remained in very high demand. According to Maine Listings, the statewide median sales price reached $299,000 last year, a rise of 16.8%. Sales also increased 2.41%. Hospitality industry lauds visa effort An additional 20,000 H-2B tem- porary work visas are now available for the first half of the year, and the boost in travel allowances could help businesses fill seasonal job openings across the U.S. and in Maine. e U.S. Department of Labor and the Department of Homeland Security issued a joint rule making available the additional visas, said U.S. Sen. Susan Collins, R-Maine, and Angus King, I-Maine. "e tourism indus- try really relies on H-2B visas," said Kathryn Ference, director of work- force development at the Maine Tourism Association. "Hospitality businesses want to hire locally but there aren't enough people available. Businesses are breathing a sigh of relief." Annually, 66,000 H-2B visas are allocated nationally. For each six- month period, that means that 33,000 visas are available. By increasing the visas for the first half of the year by 20,000, that's a 60% percent increase and will make a total of 53,000 visas available nationally for the first half of the year, Ference said. 'Greenlight Maine' names 10 competitors for Season 7 Out of more than 35 companies that applied to compete in the next edi- tion of the "Greenlight Maine" TV business-pitch contest, 10 have been chosen for Season 7. e season starts March 24, on Maine Public, and will run through mid-July. Taping starts Feb. 8. e top three finish- ers in the pitch competition will receive cash prizes of $5,000, $10,000 and $25,000. e contestants will be: Mumbai to Maine LLC, maker of gourmet Indian simmer sauces; the Good Crust, artisanal maker of frozen dough from 100% stone- milled Maine grains; Ocean Farm Supply LLC, maker of an economic alternative to plastic for harvesting shellfish; Farm Drop, online market- place to connect customers with local farmers year-round; Navi Tour, web platform and app for nature guides in Maine; NKENNE, language learning app dedicated to African languages; Rugged Seas, a social enterprise that recycles used fishermen's wading apparel into totes and other products; Maine Float LLC, designer, manu- facturer and seller of novel products intended for open water applica- tions and recreation; Opbox, creator of mobile commercial structures for retail and other purposes; Hüga B U S I N E S S M A I N E Business news from around the state S T A T E W I D E B R I E F Report shows Portland developers find work around to deal with affordable housing provision B y J e s s i c a H a l l P o r t l a n d — The Green New Deal, which mandates that certain new residential construction in Portland meet afford- ability requirements, has led to a dampening of development in the year since its passage. In 2020, prior to the new inclusionary zoning provision, 756 residential units were put on the planning books. In the roughly one year since passing the provision in November 2020, only 139 units had been put on the books — a decrease of 81.6%, according to a study by the Boulos Co. Developers are diverting investment to South Portland, Biddeford, Westbrook and other cities, the report said. The three projects that are on the books in Portland include a 48-unit development called Winchester Woods in Portland's East Deering neighborhood, as well as a 81-unit project at 45 Forest Ave. and a 10-unit development at 392 St. John St. The Green New Deal requires that in developments of 10 or more units, 25% of those units must be affordable to people making 80% of the area median income. The rule applies to new construction, substantial rehab, adaptive reuse or conversion from nonresidential to residential use. The previous rule required 10% of new units to be work- force units and defined workforce units as affordable for households that earn 100% of the area median income. "The reason it was voted on was a very legitimate hous- ing problem. Housing is a big issue. Voters hoped it would increase the amount of affordable housing but it ultimately led to fewer units altogether," John Finegan, an associate with Boulos, told Mainebiz. Traditional workforce housing, which often uses subsidies and public financing, will continue to be developed unhin- dered by the new ordinance. Developers also can choose to pay $150,000 per workforce unit to the city as an alternative to providing workforce units, known as a fee-in-lieu. As a result, luxury units can be more prof- itable because the $150,000 fee-in-lieu remains flat, regardless of the quality or sale value of the unit, the Boulos report said. According to the Boulos report, Christine Grimando, director of Portland's Department of Planning & Urban Development, says developers have found ways to skirt the new provision. "For example, one multifamily project originally slated for 20-plus units is being redesigned as a nine-unit project, just below the threshold that triggers inclusionary zoning," the Boulos report said. R E N D E R I N G / C O U R T E S Y O F K E V I N O ' RO U R K E One multifamily project originally slated for 20-plus units is being redesigned as a nine-unit project, just below the threshold that triggers inclusionary zoning. — Boulos report Winchester Woods is the first development where 25% of the units are required to be affordable to Portland residents.

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