Preservation of Affordable Housing (POAH) a national nonprofit affordable housing developer, has closed on the construction financing for Lambert Woods North, a six-building, 72-unit apartment complex in Portland, Maine.
This is POAH’s first development in the state of Maine and will feature a mix of one-, two- and three-bedroom rental apartment homes reserved for households earning 60% of Area Median Income (AMI), with seven units reserved for referrals from the city’s homeless shelter. The buildings are designed to the US 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 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, $8.49 million 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 used in the project’s underwriting.
POAH is the lead developer and is collaborating with local partner Maine Cooperative Development Partners, which secured the site through an RFP process issued by the city in early 2021. Site clearing will begin this month, and the project will be completed in the spring of 2027.
“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.”
