Nonprofit housing developer closes on financing to build 72 affordable family apartments in Portland, Maine

PORTLAND, MAINE – Preservation of Affordable Housing (POAH) a national nonprofit affordable housing developer, today announced it has closed on the construction financing for Lambert Woods North, a 72-unit apartment complex in Portland, Maine that will provide critically needed affordable family housing in a growing high-cost market.

This is POAH’s first development in the state of Maine. The future Lambert Woods North is located in Portland’s North Deering neighborhood on wooded land acquired from the city. POAH is the lead developer and is collaborating with local partner Maine Cooperative Development Partners (MCDP) which secured the site through an RFP process issued by the city in early 2021.

The development’s six buildings are designed to the U.S. Department of Energy’s Zero Energy Ready standard and will be sited to maximizes open space and tree coverage while providing optimal exposure for solar energy arrays. The development will feature a mix of 1-, 2- and 3-bedroom rental apartment homes reserved for households earning 60% of 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.

“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/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.”

The Maine State Housing Authority (MaineHousing) is providing 4% Low Income Housing Tax Credits, along with low-cost construction and permanent loans. CREA LLC is investing over $11 million in LIHTC and solar Investment Tax Credit (ITC) equity.  Permanent financing sources include a $10.1 million first mortgage, $8.49M of MaineHousing subordinate financing, $576,000 of anticipated Efficiency Maine incentives, and $360,000 of City of Portland Housing Trust funds.

POAH is bridging the state energy incentives and Housing Trust funds with a $623,927 Capital Magnet Fund (CMF) loan. A Tax Increment Financing (TIF) agreement with the City was critical to the project’s underwriting.

POAH is also planning a second future 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 (3iHoME) will feature universal design and assistive home technology, fostering independence and fully integrated living. Sturgeon Place will be located in the heart of The Downs at Scarborough, a fast-growing mixed-use complex in the heart of the city. MaineHousing funding and other financing sources have been secured for that project, and POAH and 3iHoME plan to break ground in 2026.

In addition to the City, North Woods project partners include:
•    Maine Cooperative Development Partners (MCDP)
•    Building Evolution - energy-efficiency consultant 
•    Revision Energy - solar partner
•    Kaplan Thompson Architects 
•    Penobscot General Contractors
•    Acorn Engineering
•    Aceto Landscape Architects

“I’m excited to see this important addition of affordable homes being added to the North Deering neighborhood. The vision and patience of past and current city councilors and city staff are to be applauded,” said Matt Peters, Maine Cooperative Development Partners.

“When developers, funders, and municipalities come together with shared vision and determination, we can build the affordable homes that make a real difference for Maine families,” said MaineHousing Development Director Mark Wiesendanger.

“We at CREA are thrilled for the opportunity to collaboratively work with POAH and Maine Housing to help create this much needed affordable housing community in Portland, ME. CREA would also like to thank the City of Portland for their foresight and support in bringing this community to fruition,” said Michael Murray, Senior Vice President of Acquisitions, CREA.

Site clearing will begin this month, and the project will be completed in the spring of 2027.

POAH is a national nonprofit developer and owner of 14,000 affordable rental apartments in 13 states and the District of Columbia. POAH owns affordable housing in every New England state except Vermont. POAH's mission is to preserve, create and sustain affordable, healthy homes that support economic security and access to opportunity for all. www.poah.org