September 2007

 

Genesis Fund loans support affordable housing on Peaks Island and Vinalhaven

 

HomeStart, Peaks Island

With the help of a Genesis Fund acquisition loan of $187,000, HomeStart, a volunteer-run nonprofit housing group on Peaks Island, was able to purchase its first property to assist in providing affordable, year-round housing on the island. 

The 16,000 square foot lot on which the single family home sits is large enough to allow HomeStart to develop two additional properties.   HomeStart is in the process of seeking rezoning approval from the City of Portland to construct up to two townhouses which the organization plans to sell to low- and moderate- income families. While its rezoning application is being considered, HomeStart will rent the single-family house (for up to two years) to a moderate-income family.

For assistance with the rezoning application and project development, HomeStart has entered into a written contract with Avesta Housing, the largest non-profit housing agency in Maine . Presuming rezoning approval, HomeStart will repay the Genesis loan when construction financing is secured.

In addition to a loan from the Genesis Fund, HomeStart has been successful at raising private donations to subsidize the purchase and received a $25,000 grant from the Island Institute's Affordable Coast Fund and a $25,000 grant from the Genesis Fund-administered Island Challenge Fund.  The Genesis Fund was also able to assist HomeStart by providing a subsidized interest rate through a grant from Jane's Trust of Boston intended to assist island housing groups.

Community Housing of Maine, Vinalhaven

Community Housing of Maine, was awarded an acquisition loan of $150,000 to purchase a commercial building on Vinalhaven that is being converted into six affordable rental apartments.

Originally a general store, the building is in the process of being converted into 6 affordable apartments within walking distance from downtown and the ferry dock.

Like many island and coastal communities in Maine , Vinalhaven has experienced serious inflation of property values caused by the influx of affluent, seasonal buyers. This has made it increasingly difficult for low- and moderate- income families to afford housing, particularly since the cost of constructing new housing is compounded by distance from the mainland.

According to a Housing Demand Analysis prepared for the Town in 2004 fully two-thirds of the 137 renter households on Vinalhaven in 2000 had annual incomes below $35,000. The study projected a need for an additional 20 units by 2007. No new affordable rental housing units have been added to the housing stock since the analysis in 2004, which also noted a “backlog” demand of 3 to 10 rental units. CHOM is aware of several qualified renters who are living in substandard housing units (no indoor plumbing) and would benefit immediately from the completion of this project.

CHOM secured both an AHP grant award from the Home Loan Bank of Boston and a MaineHousing grant for permanent financing.

 

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