Mainebiz

V O L . X X X N O. X V I J U LY 2 2 , 2 0 2 4 26 F O C U S Finance incentives e Szanton Co. recently broke ground on a 63-unit affordable housing apart- ment building, called 45 Dougherty Court, in Portland's Libbytown neigh- borhood. Designed to LEED Silver standards, the project will include 63 one-, two- and three-bedroom units, along with a fitness center, community room, laundry room, secure indoor bike storage and EV charging stations. e project cost is expected to be just over $27 million. Financing comes from several MaineHousing programs: 4% low-income housing tax credits bringing in $8.8 million, an interest-only, 30-year mortgage of $8.2 million, and a zero-per- cent mortgage of $7.4 million that will be due at year 30; plus affordable housing tax increment financing from the city. Tax increment financing defers property taxes for a specific time period. Reserved for households earning up to 60% of area median income, rents are expected to range from $1,130 for a one- bedroom to $1,550 for a three-bedroom. In Portland currently, rentals for this type of unit at market rates would probably range from $1,900 to $2,600, Szanton says. e Szanton Co. has built 14 afford- able apartment projects throughout southern Maine and seacoast New Hampshire and consulted on 15. "It's a double bottom line," says Szanton. "I feel very lucky to have found a field where I can have a positive impact on society and help meet some of our most pressing needs in terms of provid- ing safe, decent affordable housing that people want to live in — and also make a living at it." Housing flow New incentives and policies are making such projects more viable, Szanton says. "e only way developers can afford to offer rents that are low enough for many people in our society to afford is by having some sort of subsidy involved," he says. "If you were to just buy a piece of land and go to a bank to borrow money to build a building, with no subsidy, you'd have to charge rents that are well over what most workers can afford." Maine needs more. Homes are considered affordable if the rent or cost of ownership is less than 30% of household income, says the U.S. Department of Housing and Urban Development. Today, buying and renting are unaffordable for many Mainers, according to the State of Maine Housing Production Needs Study (October 2023). And the housing inventory — 737,800 in 2021 — is not enough. Maine needs to add 8,500 to 9,300 homes per year, twice today's production. "We need a housing system where all income levels are flowing nicely," says Brennan. "Renters become homeown- ers. Homeowners expand their family, grow their businesses, and buy their next home. Maybe they want the nice house for a second home, then as people age they look to downsize. We want to make sure there are housing options at all those different levels." Laurie Schreiber, Mainebiz senior writer, can be reached at lschreiber @ mainebiz.biz » C O N T I N U E D F RO M P R E V I O U S PA G E Financing for the Szanton Co.'s 63-unit affordable housing apartment building in Portland's Libbytown neighborhood includes tax credits and zero-interest and interest-only loans. R E N D E R I N G / C O U R T E S Y T H E S Z A N T O N C O. Visit us at ccb.us WORK WITH US General Contracting Construction Management Site Services & Facility Maintenance COMMERCIAL | INDUSTRIAL | INSTITUTIONAL SINCE 1945 Mechanical & HVAC Services Health & Safety Consulting

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