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W W W. M A I N E B I Z . B I Z 23 M AY 2 , 2 0 2 2 F O C U S R E A L E S TAT E / C O N S T R U C T I O N / E N G I N E E R I N G Demand for affordable housing continues to grow B y J e s s i c a H a l l e need for affordable housing has never been greater in the state, with increased applications for limited spots. Now for the first time there could be the political and federal pandemic funding to help make small gains, advocates say. "All of us in affordable housing have been jumping up and down and scream- ing and waving our hands saying there's a problem for years. It's like watching a car crash happening," says Amy Cullen, vice president and project partner for the Szanton Co. "It feels like people are starting to hear us. e pandemic really brought it into focus. Lawmakers are finally paying attention." An amended version of the state's affordable housing bill, LD 2003, passed, requiring towns to allow acces- sory dwelling units and duplexes wher- ever single-family homes are allowed. e bill also offers municipalities the grants and technical assistance needed to review their land-use rules, which smaller towns have said they couldn't afford on their own. "e issue of affordable housing and its importance has never been so in the forefront of everyone's minds," says Daniel Brennan, director of MaineHousing. Still, despite these advancements, the issue of affordable housing is dire, advocates say. "We need housing for those aging in place, housing for the homeless, refugee housing — we need it all," Cullen said. Maine has several unique challenges given its rural areas and old housing stock. Add to that the pandemic, rising labor and construction costs, as well as limited housing availability, and the situation gets worse. row in some "not in my backyard" affordable hous- ing opponents, and the potential loom- ing threat of a recession, and you have a recipe for disaster. While a recession and a rise in interest rates could ease the pressure on the current housing bubble, these economic issues could make the finan- cially vulnerable population more at risk for housing insecurity. "Despite producing more housing than ever, more people are more vulnera- ble than ever and we need more options. e gap is getting wider. ere are more people who need it and we can't build it fast enough," says Rebecca Hatfield, senior vice president of real estate at Avesta Housing. "COVID led to a decline in people's ability to afford hous- ing. Any downturns in the economy would hurt. People at the lowest income levels are already unstable." In 2021, MaineHousing financed more than 520 units of new hous- ing, marking the highest level ever, Brennan says. Its current pipeline of projects being underwritten or under construction includes 52 projects and more than 2,100 units. "It's the single largest pipeline in my history at MaineHousing and it's still not enough to solve the prob- lem," Brennan says. "e fundamental change in investment into affordable housing needs to stay at these levels for 10 more years, at least. When developers have confidence that the dollars are going to be there, they will follow through. My fear is that resources dry up." "Affordable housing needs to be looked at not just as a govern- ment sector issue. Every municipal- ity and person needs to get involved," Brennan said. "It's fundamental. Everyone needs a home that they can call their own." Ready to pivot whenever your job does. Hammond Lumber Company has your back. We know that even the best planned projects can run into problems. We're problem-solvers. We've got what you need and we'll bring it to you, wherever you need it in the great state of Maine. Think of us as your partner, a member of your team. No matter what stage your project is in, we're here when you need us. Auburn • Bangor • Bar Harbor • Belfast • Belgrade • Blue Hill Boothbay Harbor • Brunswick • Bucksport Calais • Camden Cherryfield • Damariscotta • Ellsworth • Fairfield • Farmington Greenville • Machias • Portland • Rockland • Skowhegan HammondLumber.com Auburn • Bangor • Bar Harbor • Belfast • Belgrade Blue Hill • Boothbay Harbor • Brunswick • Bucksport Calais • Camden • Cherryfield • Damariscotta Ellsworth • Fairfield • Farmington • Greenville Machias • Portland • Rockland • Skowhegan HammondLumber.com Auburn • Bangor • Bar Harbor • Belfast • Belgrade • Blue Hill Boothbay Harbor • Brunswick • Bucksport Calais • Camden Cherryfield • Damariscotta • Ellsworth • Fairfield • Farmington Greenville • Machias • Portland • Rockland • Skowhegan HammondLumber.com The backlog for affordable housing At Avesta Housing, a nonprofit that develops affordable housing, applica- tions in 2021 increased dramatically, but the number of units being pro- duced could not keep up with demand. Applications for affordable hous- ing with Avesta Housing in 2021 revealed the following data: Total applications for affordable housing increased by 32% (6,231 in 2021 vs. 4,715 in 2020). More than a third of all applicants (34%) identified as being homeless. While Avesta added 179 new homes to its property portfolio, it was able to house just 7.8% of all appli- cants, a decrease from 9.2% in 2020. S O U R C E : Avesta Housing C O N T I N U E D O N F O L L OW I N G PA G E »

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