Mainebiz Special Editions

V O L . X X I X N O. X I X 70 Fact Book / Doing Business in Maine B U S I N E S S R E S O U R C E S B U S I N E S S R E S O U R C E S e caught up with Shanahan, who retired from his leadership role at the end of June but remains a senior advisor at Evernorth, for his regional take on affordable housing and the current climate for raising development capital. Mainebiz: How does Maine stack up against Vermont and New Hampshire in terms of affordable housing supply and financing? Bill Shanahan: It's no secret that in all three states, the supply of affordable housing lags behind the demand. at remains a big challenge for all three states. Traditionally, Maine has done a really good job of setting aside resources to create and preserve affordable hous- ing. e state HOME fund, various bond initiatives, leveraging the state Historic Credit Program and creating the state Housing Credit Program are a few examples of what Maine has done proactively and, in some respects, serves as an example for others. MB: What do you see as the biggest impediment to affordable housing in Maine? BS: ere are a couple of things. e relatively scarce funding resources (both capital and operating resources) have always been an impediment, and a lack of understanding of both the full spectrum of what affordable housing means and the housing needs of resi- dents. Land use restrictions also create barriers to affordable housing. MB: At Evernorth, what projects are you most proud of and why? BS: e crew at Evernorth uses the term 'Shanahan specials' — unconventional projects that use conventional funding, by stretching the limits of this funding, that reach to serve a resident population that might not otherwise be served. MB: Can you give an example of a successful project? BS: Freedom Place, at 66 State St. in Portland. In this case, a develop- ment partner knew the residents had few housing choices, and there are few funding programs to help. at developer made a commitment to stretch, and we felt the need to match his commitment. MB: What's your take on the current climate for raising capital for development? BS: Raising capital is always a challenge, but it gets more challenging if inves- tors are concerned about their liquidity and they have investment alternatives that compete with housing investments. ings had been stable for a while, less so now, and that instability means inves- tors might sit it out or expect a higher return. which translates to fewer invest- ment dollars for projects. MB: Some analysts are warning of a crisis in the U.S. commercial real estate market. What are your ex- pectations, including any potential impact on affordable housing? BS: Rental housing, in particular afford- able rental housing, doesn't always track with what happens in the broader com- mercial real estate market. Part of this goes to the strong demand for affordable housing regardless of market fluctua- tions, and part of this goes to commit- ted public funding that is such a big part of affordable housing. In the past, economic downturns have meant an uptick for affordable housing because it becomes the only game in town. MB: Finally, any advice or words of wisdom to Evernorth President Nancy Owens? BS: e time we worked together as co- presidents has meant we have developed and share a vision for Evernorth where the organization continues to build on its strengths and expands its capacity to engage in broader community develop- ment activities. At its core, Evernorth is an intermediary, a facilitator or kind of broker that brings people and resources together to do a project or build a community or advocate for the impor- tance of housing for individuals and communities. Bill Shanahan is the co-founder and former co- president of Evernorth, a nonprofit organization that provides affordable housing and community investments in Maine, New Hampshire and Vermont. Based out of offices in Portland, and Burlington, Vt., Evernorth has raised and deployed more than $1 billion in equity capital for affordable housing and built more than 15,000 affordable homes for low- and moderate- income people across northern New England. W Maine shows the way on affordable housing, regional expert says B y R e n e e C o r d e s F I L E P H O T O / T I M G R E E N WAY Bill Shanahan is the co-founder and former co-president of Evernorth, a nonprofit organization that provides affordable housing and community investments in Maine, New Hampshire and Vermont. In the past, economic downturns have meant an uptick for affordable housing because it becomes the only game in town.

• Cover