Bangor officials on Tuesday got a first look at a Portland-based developer’s plans to build 62 units of new housing off Grandview Avenue.
Developers Collaborative is looking to build 14 single-family modular homes followed by two three-story apartment buildings, each holding 24 units to total 48 apartments.
The 62-unit development would be built in two phases on a roughly 10-acre area off Grandview Avenue between Hillside Avenue and Darling Parke Drive, which the city owns.
The Bangor Planning Board gave the project preliminary approval on Tuesday. The developer will need to receive final approval from the city in the coming weeks, and get clearance from state agencies before construction can begin, according to Mike Lyne, director of commercial real estate at Developers Collaborative.
This is the latest step in a years-long effort by the city to bring housing there specifically for residents who earn 80% to 120% of the area median income, which the Department of Housing and Urban Development sets annually. For a family of two in Bangor, this would mean an annual income of $68,200 to $102,240.
City staff found residents in this demographic, often referred to as “the missing middle,” make too much to qualify for most housing subsidies, but often can’t afford to rent or buy market-rate housing. This forces many to pay more than they can afford for housing, or get blocked out of the real estate market altogether, deepening the city and state’s housing crisis.
The houses are designed to have three bedrooms, two bathrooms, an attached garage and range from 1,680 to 1,850 square feet. They’re slated to be sold for roughly $280,000, Lyne said.
“These are pretty gracious sizes for the price,” Lyne said.
Bangor city councilors dedicated 2023 to be “The Year of Housing” and directed city staff to identify ways to advance affordable housing locally, said Anne Krieg, Bangor’s community and economic development director.
“We started looking at city properties to see if we could be part of the solution and dedicate city property to affordable housing,” Krieg said.
Staff identified this area on Grandview Avenue as an ideal location for affordable housing because of its proximity to stores, Bangor High School, bus stops and other resources.
In 2024, the city agreed to devote roughly $2 million in federal funds from the pandemic-era American Rescue Plan Act to bring utilities and road infrastructure to the land. This, the city believed, would spare a developer from the cost of doing so later and make the land more attractive to a future housing developer.
“That helps tremendously,” Lyne said. “Without that help, a house would have to sell for about $420,000.”
Developers also secured financing from the Maine State Housing Authority to keep the home prices within reach for more prospective buyers, Lyne said.
In exchange for preparing the land for construction, the city required a future developer to build a certain type of housing that’s affordable for middle class earners. Bangor selected Developers Collaborative for this effort in late 2024.
Developers Collaborative has prior experience creating affordable, market-rate and senior housing, among other projects, but this would be its first development in Bangor, the company’s website shows.
The company initially proposed building 94 homes on the site, but were constrained by a brook, wetland and a Versant Power easement that border the area, Lyne said.
Three local residents submitted public comments on the plan prior to Tuesday’s meeting, all of which opposed the development due to the congestion in the area or expressed concerns of how the dozens of new units may increase traffic.
In an email to the city last week, Nori and Douglas Kazdoy, who neighbor the site, said they have “serious concerns” about the proposal and suggested the developer “relocate this very important building project to a less congested part of Bangor.”
Another four residents spoke during the meeting and expressed concerns about how the new housing could increase traffic in the area and change the appearance of the neighborhood. Other neighbors questioned how the developer would ensure the new housing in wet areas won’t push water into existing homes nearby.
If the company receives necessary approvals soon, Lyne said foundations for the single-family homes could be finished by the end of the year. Under this timeline, the houses could be finished and ready for residents to move in next summer.
The apartments, slated to be built after the single-family houses, would be either studio or one-bedroom units, according to the development application. They’d be managed by DC Management, the property management arm of Developers Collaborative.
The rent prices for those apartments haven’t been determined yet, but they’d also cater to residents in the same income bracket, according to Lyne.
The developer also plans to keep some greenspace in the area and walking paths that connect the new neighborhood to abutting areas, Lyne said.