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W W W. M A I N E B I Z . B I Z 17 F E B R UA R Y 1 0 , 2 0 2 5 F O C U S C O M M E R C I A L D E V E L O P M E N T — became a test case of sorts for how to affordably develop middle-income housing that would, in turn, be afford- able for buyers. Three key elements: 1 e land was awarded by the city at a price slightly below market, a mean- ingful savings for the project. 2 While 20 units were targeted for middle-income, three top-floor units were built as market-rate, pro- viding larger margins that helped subsidize the entire project. "In other words, we subsidized inter- nally without municipal, state or federal grants," says Soley. 3 e middle-income units are small, averaging 450 square feet, but incor- porate attractive construction tech- niques and finishes such as Passive House energy efficiencies and granite countertops. "We're taking luxury condo finishes and shrinking the concept," says Soley. e model accommodates develop- ment without deed restrictions that con- trol sale prices when condos turn over, he says; homeowners can build modest equity but the compact unit sizes keep the units affordable upon resale. Data from Parris Terraces support the theory. Units initially sold for an aver- age $215,000 in 2019. Since then, seven have turned over. Total appreciation was approximately 13%, while all units re-sold to households at 120% AMI and below. "Even after initial sale, these units will remain affordable, as the market can only support limited purchase prices for such small units," says Soley. Domus was established to launch the model to the larger housing market. Its pilot project in downtown Westbrook is phase three of a larger development called Maple Grove, on 3.25 acres at 35 Seavey St. Soley and Hebert are wrapping construction of phase one — Seavey Terraces, a 65-unit apartment building for workforce housing at below-market rates. (For now, Seavey Terraces is block-leased by the University of New England for student housing.) Avesta Housing plans to break ground this month on phase two, a 61-unit affordable housing building, called Seavey Crossing, for people age 55-plus. e Domus project will have 45 condos, at 450 to 500 square feet, with prices in the $280,000 range. Features include an energy-efficient envelope, granite countertops, stainless appliances, decks and shared spaces. "ey'll just be smaller than luxury condos going for $1 million in Portland," says Soley. Like Parris Terraces, some top- floor units will be market-rate to help subsidize the development. "We receive financing from the banks, so we have to be able to make money," Soley says. "We can't take a loss or be a nonprofit. We have to be a for-profit to do this." Construction is slated to start in August. Goals include making the model replicable for other communities. "ere are a lot of challenges for developers to jump into this realm," he says. "It's not an intuitive process. It's not simply putting high-quality units on the market, having decent margins and reaping the profits. You have to figure out other ways to make it work." C O N T I N U E D O N F O L L OW I N G PA G E » The schoolteacher, the police officer, the firefighter, the nurse — they are left behind in this struggle to find housing in probably one of the most challenging periods of the housing crisis that we have ever seen in this state. — Jack Soley Domus Building your business? Talk to your neighbor. Since 1852, Bath Savings has been investing in the people, communities, and businesses that make Maine the place we're proud to call home. Our lenders are your neighbors — they shop in your downtown, coach your kids, volunteer in your community, and understand your local economy. Contact us today to learn more about custom lending solutions tailored to suit your needs. 1-800-447-4559 | bathsavings.bank MEMBER FDIC EQUAL HOUSING LENDER Becky Lizotte Principal, Doten's Construction James Perkolidis Vice President, Bath Savings

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