PORTLAND, Maine — A flurry of construction in the Portland area will provide new housing options for the area’s low-income residents.
But these aren’t the cookie cutter apartments of yore. Thin wires lining the hallways — meant for artwork — is one of the little tweaks in the design of Oak Street Lofts, a 37-unit building of efficiency apartments nestled in Portland’s arts district. The nearly $6.4 million project is nearing completion, and when it opens later this month it will be the first multifamily affordable housing building in the state to earn LEED Platinum certification for its especially low carbon footprint.
Oak Street Lofts is just one of eight Avesta Housing projects either in the queue or in various stages of construction.
The workload is large even for Avesta, the largest nonprofit housing agency in Northern New England, and comes at a time when there is still a strong need for affordable housing — and construction work — in southern Maine due to a still sluggish economy.
The ambitious wave of projects also comes as the group tries to heal bruises to its image caused by ties to controversially deficient low-income housing in the Norway area, as well as a three-year-old audit that questioned Avesta’s compliance with federal cost control standards.
“In the last 12 years, since I’ve been with Avesta, we’ve usually on average had two or three projects under construction at any given time,” organization president Dana Totman told the Bangor Daily News on Wednesday. “This scenario, where we have six currently under construction, is double or triple that normal bulge of activity.”
Part of that buildup of projects, Totman said, can be attributed to the fact that Avesta had “a bit of a lull” in new buildings over the previous year. Another contributing factor is an increase in funding available for such projects, through a $50 million 2009 state bond to support affordable housing and the federal stimulus package that same year. But a third factor, he said, is that Avesta began “consciously aggressively going after development because the need is there.”
“The need couldn’t be greater and it ranges from seniors wanting to move out of a dilapidated farmhouse, to an individual staying in the Oxford Street [homeless] shelter, to a young couple just starting out,” Totman said. “The demand for rental housing is greater than it’s been in a long time.”
With their ambitious slate of projects, Avesta officials are targeting as many of those demographics as they can. All the way to putting up wires along the hallways in Oak Street Lofts for artists.
“Those will be marketed to artists, although you don’t have to be an artist to live there,” said Greg Payne, an Avesta development officer. “Cascade Brook in Saco will provide housing for the elderly, and [the second phase of] Pearl Place here in Portland is for families, so there is a wide range of people being served.”
Combined, the organization’s eight projects will add 243 affordable units to the greater Portland area, providing housing to an estimated 400 people.
But with thousands on the group’s waiting lists, Totman said he hopes to keep his foot on the pedal in coming years as well. Totman said 3,500 people approached Avesta during the first six months of 2011, and the organization was able to place less than 150 of them based on openings at the time.
Statewide, said Payne, for every 100 extremely low-income individuals, 49 appropriately affordable units are available. That means some of those individuals join the ranks of the homeless, contributing to increasing numbers living on the streets of Portland. According to information provided by the city Thursday, as many as 350 people on any given night check in at one of Portland’s six overnight shelters.
Even without adding housing units directly for use by the homeless, as is done by the city of Portland and the nearby organization Preble Street, among others, Payne said the phalanx of Avesta projects will help open up more spaces for folks in the lowest of income brackets.
“Units like those in Oak Street Lofts come onto the market and people who are making 50 percent of the median income can afford to move in,” Payne said, freeing up their previous apartments for those defined as “extremely low income,” making less than 30 percent of the area median income.
The march of projects also injects $55 million in construction activity to the area — including $30 million in contractor wages and between 1,000 and 1,500 jobs — at a time when employment is just as needed as housing.
“There’s a handful of school projects, and then there’s this [slate of Avesta projects],” Totman said. “There are not a lot of office buildings going up, there aren’t a lot of subdivisions, there aren’t a lot of retail projects. Contractors are knocking on our door.”
The big development push also comes on the heels of what has been a daunting stretch politically for an organization that was largely uncontroversial previously.
Avesta Housing was the subject of an audit by the Office of the Inspector General in 2008. The investigation was conducted to determine whether Avesta complied with procurement policies and procedures spelled out by the U.S. Department of Housing and Urban Development and whether the firm’s method of cost allocation was adequate and supported. The audit found instances where Avesta did not comply with federal regulations and offered suggestions for changes. Totman said his staff did not agree with portions of the report and subsequently provided additional documentation that challenged assertions in the audit. The matter has now been closed.
More recently, Avesta was tied to a group of low-income apartments in the Norway area found to be left in disrepair. Avesta was signed by the Maine State Housing Authority to inspect the units, and after the apartments were discovered to be unsafe, the Portland organization fired the longtime inspector who had been charged with overseeing the properties.
Avesta Housing has long worked closely with the authority — often called in short MaineHousing — and remains in danger of becoming collateral damage in what has become an increasingly intense and high profile political feud between Republican State Treasurer Bruce Poliquin and Democrat MaineHousing Director Dale McCormick. Poliquin has criticized the high per-unit cost of some MaineHousing projects.
The Norway controversy, said a MaineHousing official, was traced to a “rogue inspector” while the Inspector General criticisms were ultimately addressed.
Still, the stories cast negative spotlights on Avesta. The wave of new projects helps organization officials weather those ordeals and remain focused on their mission of creating and advocating for affordable housing, Totman, who served as deputy director of MaineHousing before joining Avesta 12 years ago, said.
“It’s staggering what the need is, but that’s what brings us to work each day,” he said.
List of projects
• Oak Street Lofts, Portland
Units: 37
Type: Efficiency apartments
Contractors: CWS Architects, Wright-Ryan Construction
Cost: $6.39 million
Funding: Federal low-income housing tax credits, NeighborWorks America, city of Portland, MaineHousing
Finished: This month
• Cascade Brook, Saco
Units: 30
Type: Senior apartments
Contractors: CWS Architects, Landry/French Construction Co.
Cost: $5.47 million
Funding: Federal low-income housing tax credits, stimulus funds, Federal Home Loan Bank of Boston, MaineHousing
Finished: May 2012
• Pearl Place II, Portland
Units: 54
Type: Family apartments
Contractors: PDT Architects, Wright-Ryan Construction
Cost: $12.91 million
Funding: Federal low-income housing tax credits, city of Portland, MaineHousing, Boston Capital
Finished: December 2012
• Adams School, Portland
Units: 16
Type: Two- and three-bedroom townhouses
Contractors: PDT Architects, builder to be selected through bidding
Cost: $5.9 million
Funding: Neighborhood Stabilization Program, city of Portland
Finished: TBA
• Emery School, Biddeford
Units: 29
Type: Affordable apartments
Contractors: Archetype Architects, AlliedCook Construction
Cost: $6.8 million
Funding: Federal and state Historic Rehabilitation Tax Credits, Northern New England Housing Investment Fund, TD Bank
Finished: July 2012
• Stonecrest II, Standish
Units: 25
Type: Senior apartments
Contractors: Gawron Turgeon Architects, Great Falls Construction
Cost: $4.62 million
Funding: Federal low-income housing tax credits, Rural Development, MaineHousing
Finished: TBA
• Park Street School, Kennebunk
Units: 30
Type: Senior apartments
Contractors: CWS Architects, Wright-Ryan Construction, Sutherland Conservation & Consulting
Cost: $8.16 million
Funding: Federal and state Historic Rehabilitation Tax Credits, federal low-income housing tax credits, USDA Rural Development, MaineHousing
Finished: August 2012
• Munjoy Commons, Portland
Units: 39
Type: Family apartments
Contractors: CWS Architects, AlliedCook Construction
Cost: $9.31 million
Funding: MaineHousing, stimulus funds, low-income housing tax credits, Northern New England Housing Investment Fund, Gorham Savings Bank
Finished: Late 2011
That is $59,560,000 for 243 units of low income housing with an average of $245,102 per unit. I sure wish I had that kind of budget for my housing needs.
I have to wonder if these projects go out to bid.
Of course they do, the list of approved contractors is long; I am quite certain.
approved ?? who is looking the more green the closer to the top
This is eye opening.. I assume we will chip in on the repair , maint and utilities ..Looks like I am working to hard and long for soo much less!!
the least expensive is $220,000 wow
The title of this article is somewhat misleading as these are not all low income units. The Adams School project in Portland is condos that will sell for roughly 300K.
My house and land together cost $90k.
Why not use the $$ to buy up properties already on the market for much less? I realize this pork project creates jobs, but putting the $$ into the real estate of Maine will make just a big a difference. Plus, you can get a heck of alot more than an efficiency apartment for $250K each!
I repeat: They want us in highly dense housing, not spread out all over Maine, and that is that.
You forgot something, so I added it for you: I realize this pork project creates jobs AND SENDS TAXPAYER FUNDS DIRECTLY TO OUR FRIENDS AND ASSOCIATES but ..
We ALL need to wake up, smell the coffee, and then make a fresh pot!
Any buying up dozens and dozens of houses to use for low income housing is going to help out the middle class how? It will only increase the price of what is left over for those that have to actaully take out a loan.
What no northern Maine projects I can’t believe that. Cost wise we could build 3 houses for every one built down there and still have a few bucks left over.
Talk to the people in the Other Maine. They think all resources should go where the population is in these hard times. You lose.
I keep saying it but no one will listen, we should lease Aroostook County to New brunswick for the duration of the LePage administration.
Are they kidding?? The cost for these units is absolutely ridiculous! My house cost less than the average cost of one of their units.
Munjoy Commons, 22 units for $9.31 million. A staggering $423,182 per unit. There’s only two ways to be able to get a $423,182 home, be flat broke or rich – if you are middle class, you get to pay!
what a waste….. $245 per unit is rediculous… I bought my 1400 sq ft house for half of that…
It is an outrage that we continue to allow this to happen and it is ludicrous that people criticize Poliquin for questioning the amount being spent per unit. Instead of an apartment, they could be buying a $175,000 home for low income individuals and paying the taxes on that home for the next 25 years and still save money. Not only would it provide a home it would help boost the distressed real estate market.
Best idea I’ve heard today! Too bad I don’t have any authority.
The towns would also be happy with some relief, but hey, you are talking common sense. They want us in highly dense housing, not spread out all over Maine, and that is that.
Doesn’t anyone have the power and common sense to stop this waste????
Makes a person wonder..
So has anyone else done the math and figure that the low income units are costing roughly 200,000 dollars each. I know of apartment buildings that cost less than that. These must be some upscale places for that kind of money.
C’mon you evil, right wing, Tea Bag, Wall St., 1%, polluting, racist, homophobic taxpayers! How dare you question the cost of something in the age of Obama! As you know, these type of Solyndra style investments always pay-off in the long run. Just because the average Maine taxpayer can’t afford a house at this price doesn’t mean the homeless and unemployed non-taxpayers don’t deserve to live in luxury.
tag, I would not look to the President to place blame…..pockets are being lined by these sweetheart deals right in our own state…..go to the source.
I am absolutely not “low income” and my home cost me a solid $100,000 LESS than the average price of these homes.
I would rather see the state give $55M to Habitat for Humanity, they seem to get a lot done for housing with their funds.
great idea! when the little people work together, such as HFH, things get done faster and cheaper…they could really provide for many more people than this monstrosity, over the top price tag will be doing.
A few hundred thousand dollars per apt….That’s pretty good work if you can get it.
Now if the state and Feds would be as concerned about MIDDLE INCOME housing projects, THEN we would have something because people with the ability to pay could have some assistance (say with all the vultures involved in closing costs…or down payment), yet would then have a larger/newer/better home (and pat more in property taxes), while their prior living situation (older/smaller home) could be sold to someone of LOWER income.
I don’t have all the details worked out in my head yet…give me time…but I’m sure it would be better that $250,000 apartments which will be built with taxpayer money to then allow people to live there with taxpayer subsidized low-rent payments.
Anyone? Anyone?? I’m all for being a society where people help people, but isn’t there a better way to do this besides the same low-rent housing projects that have been dead-ends for the last 50 years???
“It’s staggering what the need is, but that’s what brings us to work each day,” Totman said.
Perhaps this means that Totman is donating his time and not getting paid for assisting with the staggering need. But probably not. I wonder what his salary is. Just saying.
If you think this is bad trying buying a small apartment in New Your City
I agree they should take the money and buy and upgrade housing already on the market. That would be much better then throwing all this money at these overpriced apartment complexes that will eventually be rundown and have to be done all over again.
Low income housing? Are they makeing these units out of stainless steel? They need to be because most of these housing projects become trash in a nano second.
Dana Totman and all the contractors involved are laughing all the way to the bank.
As we now exceed $15 Trillion in debt, I suggest that the past will be our future. Why is it necessary to provide the poor with private, well appointed quarters? Why is it necessary to allow them to buy brand name foods with taxpayer money? Why are we not developing communal, temporary housing models with Spartan sleeping areas, central kitchen and dining areas? Why are we not furnishing these communal sites with government surplus food? Take the savings and hire staff to manage the area, provide training/education and transitional services, which give the poor a way out? Poverty should not be comfortable. The above does not apply to those that are really disabled. And I mean really!