Mainebiz

W W W. M A I N E B I Z . B I Z 25 F E B R UA R Y 6 , 2 0 1 7 F O C U S G R E AT E R P O R T L A N D Affordable housing as an economic driver While the top end of the residential market in Portland has seen signifi cant additions, the city is working to address the shortage of new aff ordable housing. "You get people who are priced out of Portland, or people who want to take a fi rst job as a young profes- sional but can't aff ord to live here on an entry-level salary. So we're con- cerned about that as an economic development issue," says Jeff Levine, Portland's director of Planning and Urban Development. "We want to attract young profes- sionals and make sure they have hous- ing choices," he adds. A 2015 report on workforce hous- ing found that, generally, the hous- ing production rate is adequate, but doesn't always meet the needs of aver- age households. e median price of new construction is beyond the reach of the middle class. Still, a proportion of new homes is aff ordable. From 2010-14, 384 new condomini- ums and single-family homes were permitted in Portland, the report says. e percentage of units sold or mar- keted for sale at an aff ordable price was 7%. During the same period, 746 new rental units were permitted. e percentage of units marketed for rent at an aff ordable price was 41%. In 2015, Portland City Council adopted so-called inclusionary zoning that would require new developments of 10 units or more to set aside 10% to be off ered at an aff ordable rate. "Nothing's perfect," says Levine. "But the idea is that our neighbor- hood should include a variety of types of people and a variety of income levels. at includes making sure the market gets what it needs and also making sure the city has what it needs for the public interest." Inclusionary zoning in action Real estate developers Susan Morris and Chip Newell, principals of the NewHeight Group in Portland, developed the 12-unit 118 on Munjoy Hill, at 118 Congress St., in spring 2015. ey occupied one of the units and sold the other 11 at rates starting at $600,000. "Like so many people, we were more and more attracted to what was going on in Portland — its small- city lifestyle, walkable neighborhoods — and we wanted to be a part of it," says Morris. Now, their current project, the Luminato, which is under construction All SVN® Offices Independently Owned and Operated. 100 Silver Street Portland, ME 04101 | 207.613.7400 | www.theurbanekgroup.com Sales Leasing Tenancy Local & National Representation International Reach. Local Commercial Real Estate Expertise. Over 200 Offices in 500 + Markets Nationwide Where's Your Next Move? C O N T I N U E D O N F O L L OW I N G PA G E »

• Cover