Preservation of Affordable Housing (POAH) announced it has closed on key financing for its first development in Maine.
The 72-unit Lambert Woods North will provide critically needed affordable family in Portland’s North Deering neighborhood. The wooded site was acquired from the city.
The national nonprofit is the lead developer and is collaborating with local partner Maine Cooperative Development Partners (MCDP), which secured the property through an RFP process issued by the city in early 2021.
“POAH is pleased to begin its first affordable housing development in the state of Maine, which has seen housing prices rise dramatically, making Portland in particular, less affordable for families,” said POAH president and CEO Aaron Gornstein. “The city of Portland and MaineHousing are responding proactively, and we look forward to a strong partnership that will serve residents with much needed housing.”
Lambert Woods North will feature a mix of one-, two-, and three-bedroom rental apartment homes reserved for households earning 60% of the area median income (AMI), and seven units will be reserved for referrals from the city’s homeless shelter. The project will also improve the right of way along a busy travel corridor and will incorporate a new city bus stop.
The Maine State Housing Authority (MaineHousing) is providing 4% low-income housing tax credits (LIHTCs), along with low-cost construction and permanent loans. CREA is investing more than $11 million in LIHTC and solar investment tax credit equity. Permanent financing sources include a $10.1 million first mortgage, $8.49 million of MaineHousing subordinate financing, $576,000 of anticipated Efficiency Maine incentives, and $360,000 of Portland Housing Trust funds.
POAH is bridging the state energy incentives and Housing Trust funds with a $623,927 Capital Magnet Fund loan. A tax increment financing (TIF) agreement with the city was critical to the project’s underwriting.
Lambert Woods North partners also include:
- Building Evolution, energy-efficiency consultant;
- Revision Energy, solar partner;
- Kaplan Thompson Architects;
- Penobscot General Contractors;
- Acorn Engineering; and
- Aceto Kimball Landscape Architecture
POAH officials said they are planning a second development in Scarborough to be called Sturgeon Place, a 51-unit affordable property designed for people with physical disabilities. The collaboration with 3i Housing of Maine will feature universal design and assistive home technology, fostering independence and fully integrated living.