Housing Committee — Portland, ME
Date: 2019-11-13
Time: 17:30

HOUSING COMMITTEE

DATE: Wednesday, November 13, 2019
TIME: 5:30 PM
LOCATION: City Hall, Room 209

 AGENDA

1. Review and accept Minutes of previous meeting held on October 9, 2019


 a. Minutes of October 9, 2019

 Action Item: Review and Recommendation to the City Council on
 Disposition of Tax Acquired and City­Owned Property. The Committee
2.
 may go into Executive Session to discuss the City's legal rights pursuant to
 1 M.R.S.A. Section 405 (6) (C) and (E)


 a. Tax Acquired and City­Owned Property

 Action Item: Review and Recommendation to the City Council ­
3. Affordable Housing Development Loan Program Modification and
 Refinance Request for Avesta's Unity at Bayside development


 a. Unity at Bayside
4. Review of DRAFT 2019 Biennial Housing Report


 a. DRAFT 2019 Biennial Housing Report
5. Review of 2019 Annual Housing Committee Report


 a. 2019 Annual Housing Committee Report
 2019 and 2020 Work Plan Discussion (new and/or updated
6.
 recommendations to forward to the 2020 Housing Committee)


 a. 2019 and 2020 Work Plan Discussion




 389 Congress Street / www.portland.gov / tel, 207­874­8720 / tty, 207­874­8936 / fax, 207­756­8258
Next Meeting Date: December 11, 2019 City Hall, Room 209

Please note: The Housing Report has been amended on page 3 to include an introductory
paragraph that was inadvertently left out of the formatted draft.




City of Portland Commissions are not required to take public comment under FOAA and our Ordinance is
 silent regarding the duties of the Commission. The Commission has the discretion to not allow or allow
public comment during its meetings, including the authority to limit the duration of comments. Since the
 Commission makes recommendations to the City Council, public comment is available at that level.

HOUSING COMMITTEE

DATE: Wednesday, November 13, 2019
TIME: 5:30 PM
LOCATION: City Hall, Room 209

 AGENDA

1. Review and accept Minutes of previous meeting held on October 9, 2019


 a. Minutes of October 9, 2019

 Action Item: Review and Recommendation to the City Council on
 Disposition of Tax Acquired and City­Owned Property. The Committee
2.
 may go into Executive Session to discuss the City's legal rights pursuant to
 1 M.R.S.A. Section 405 (6) (C) and (E)


 a. Tax Acquired and City­Owned Property

 Action Item: Review and Recommendation to the City Council ­
3. Affordable Housing Development Loan Program Modification and
 Refinance Request for Avesta's Unity at Bayside development


 a. Unity at Bayside
4. Review of DRAFT 2019 Biennial Housing Report


 a. DRAFT 2019 Biennial Housing Report
5. Review of 2019 Annual Housing Committee Report


 a. 2019 Annual Housing Committee Report
 2019 and 2020 Work Plan Discussion (new and/or updated
6.
 recommendations to forward to the 2020 Housing Committee)


 a. 2019 and 2020 Work Plan Discussion




 389 Congress Street / www.portland.gov / tel, 207­874­8720 / tty, 207­874­8936 / fax, 207­756­8258
Next Meeting Date: December 11, 2019 City Hall, Room 209




City of Portland Commissions are not required to take public comment under FOAA and our Ordinance is
 silent regarding the duties of the Commission. The Commission has the discretion to not allow or allow
public comment during its meetings, including the authority to limit the duration of comments. Since the
 Commission makes recommendations to the City Council, public comment is available at that level.
 Housing Committee

 Minutes of October 9, 2019 Meeting

NOTE: The Housing Committee meetings are now live-streamed, which can be viewed at this link:
http://townhallstreams.com/stream.php?location_id=42&id=16398 These minutes provide a
record of those in attendance, general discussions taking place, and motions made.

A meeting of the Portland City Council’s Housing Committee (HC) was held on Wednesday, October 9,
2019 at 5:30 P.M. in room 209 of Portland’s City Hall. Councilors present at the meeting included
Committee members Councilor Kim Cook, Councilor Spencer Thibodeau, and Councilor Jill Duson,
Chair of the Committee. City staff present included Christine Grimando acting Planning and Urban
Development Director, Mary Davis, Division Director Housing and Community Development and,
Victoria Volent, Housing Program Manager.


Item 1: Review and accept Minutes of previous meetings held on October 9, 2019
Motion by Councilor Cook to move for adoption of the minutes from October 9, 2019. Motion was
seconded by Councilor Duson and minutes were approved 2-0.



Item 2: Communication Item: Update on 93 Douglass Street (site of former West School)
Councilor Duson noted the communication updated was to be provided by City Manager Jon Jennings;
however, the City Manager was out of town on business this evening. Councilor Duson requested this
item be rescheduled for the November 13 meeting of the Housing Committee. In the interim, Mary
Davis provided a brief update to the Committee.
The Phase I Environmental Site Assessment (ESA) was completed, reviewed and approved by the DEP
and EPA. During the assessment, materials were discovered that indicate a Phase II ESA should be
conduct. The City Manager confirmed moving forward with a Phase II ESA.
Councilor Duson and Councilor Cook expressed disappointment that the update was not more
substantial.
Councilor Duson opened this item to Public Comment
 Ed Suslovic - The Libbytown neighborhood association supports a project on this site; supports
possible rezoning to open potential use; and supports increased density. The Association would like to
work with the City during the planning and development stages. The City should conduct long term
planning in the neighborhood (a Phase II) in anticipation of the possibility of the off-ramps located near
the parcel are ever removed.

 1
 Tyler Plante - (PHA) Asked the Committee if they have any big picture goal or vision on what the
council would like to see on this parcel.
 George Rheault - Supports a more ambitious proposal for this parcel than was perhaps originally
suggested. This area presents a golden opportunity for housing. Suggests talking with Portland Water
District. The site should be used to its maximum potential (e.g. 10 to 12 story buildings). The parcel
should be treated as peninsula housing. The City should reach out to national developers with a
compelling RFP and political muscle behind a serious and thoughtful rezoning. The result may attract
other developers who may be able to provide a quicker and possibly cheaper project. This would be a
good down-cycle project.
 Councilor Duson- Noted the point of the process is to develop the lot for housing. The steps along
the way will include connecting with the neighborhood. Committee members have expressed a desire to
include workforce housing in a mixed income project.
 Councilor Cook- Indicated an openness to possibilities allowed under the Ordinance once the parcel
size is confirmed. Very open to pending the outcome of land surveys. Also noted a preference for mixed
income housing.
 Seeing no one else, Council Duson closed the Public Comment Period.
The consensus of the Committee is to look at all options pending the final reports and determination of
the parcel size.
Councilor Thibodeau joined the meeting at 6:00


Item 3: Communication Item: Update on Disposition of Tax Acquired and City-Owned Property
Victoria Volent introduced this item, which is an update to the May 16, 2019 memo to the Housing
Committee regarding the disposition of tax acquired and city-owned property.
In regards to 99 Capisic Street, the City received 7 bids on its offer for sale of 99 Capisic Street. After
reviewing the bids, the City Owned and Tax-Acquired Property Committee (COTAPC) unanimously
recommended to the City Manager the highest bid of $200,000, which offeror also wrote a letter that
they would renovate the property. As noted in the May 16 memo the City Manager, upon review by the
Finance Director, is authorized to sell tax-acquired properties if the assessed value is under $400,000.
The property is under a Purchase and Sale Agreement with a deadline to close of October 8. Net
proceeds from the sale would be deposited in the Housing Trust Fund (after payment of any taxes or fees
owed).
622 Auburn and165 Lambert Streets are divided by Washington Avenue Extension at Auburn Street. 622
Auburn Street abuts the Falmouth property line and contains 4.85 acres of land. There appears to be
development opportunity for housing in the upland area closer to Auburn Street. If it were rezoned from
R-2 to R-3, it could open up the option of a Planned Residential Unit Development for approximately


 2
10+/- units. 165 Lambert Street across the street contains 13.38 acres; the topography is very challenging
and does provide for some wetland mitigation.
Both properties were purchased, together with 13 acres in Falmouth abutting the 622 Auburn Street
property, (which the City still owns in) order to create the Auburn Street Connector with Washington
Avenue. This is leftover land from that purchase and construction.

A Department Survey was conducted for 622 Auburn/165 Lambert Streets. Results of the survey show
the Parking and School Departments do not have an interest in the parcels. Public Works would rather
not sell either lot, particularly 165 Lambert Street, due to steep topography, much of it is wetlands, and a
large portion of the 622 Auburn Street storm drain discharges into 165 Lambert Street, which flows into
the Presumpscot River. The cost of wetland mitigation, storm water management, and fill would be
astronomical and the damage to water quality in the river significant. However, there might be some
developable land in the northwest corner of the parcel(s). If the parcels are sold, a conservation easement
should be placed on the non-developable portions. Parks and Recreation would like to retain the parcels
for a future athletic complex and open space.

Both parcels are under environmental review by a consultant. A report is expected in October.

An environmental review is being conducted for 200 Lambert Street together with 622 Auburn and 165
Lambert Streets. The report is expected by October.
A Department Survey was conducted for 21 Randall Street, with no stated interest by the City in
retaining the property and support by the Planning Department in selling the parcel for housing. The
Department of Public Works noted there is a major sewer easement through one of the lots, which would
probably preclude development on that side of the property. The easement contains both a Portland
Water District sewer line (from 1976) and a presumed abandoned sewer line. If the presumed
abandoned sewer is not abandoned, then DPW recommends retaining the property containing the sewer
line. The City is working with the Department of Public Works on the status of the underground utilities.

Community Housing of Maine (CHOM) requested a 99-year lease of city-owned property at 83 Middle
Street to develop approximately 49 units of affordable rental housing for seniors aged 55 and older, which
will also include a preference for 11 units for long-term shelter stayers, parking and ground level
commercial space. The City Council met on September 4, 2019 and voted 9 – 0 for passage of the Order
approving the Option to Lease and 99 –Year Lease Agreement with Community Housing of Maine for
land at 83 Middle Street. The Option to Lease may be exercised for up to one-year. CHOM has not
presented preliminary plans to the Planning Department but has secured $330,000 in Affordable Housing
Development funding from the City of Portland. Securing additional financing and Planning Board
approval would be the next steps for this project.


The Committee requested more information on the City-owned property in Falmouth and the potential to
annex the parcel.




 3
  Item 4: Presentation of Draft 2019 Biennial Housing Report
  Victoria Volent introduced this item with a broad overview of each draft report chapter. Councilor
  Duson noted the Housing Report should not be mistaken as a declaration of success, that we have a
  critical problem with housing around the whole cycle of the market. The City has implemented a variety
  of tools to address the problems. This report is an opportunity to look at results and access the
  effectiveness of those tools. Councilor Duson requested the Committee analyze the toolbox and bring
  back suggested referrals for the next Housing Committee. Councilor Thibodeau is looking forward to
  the opportunity of taking the report and enacting three or four policy goals as suggestions to the next
  Committee’s work plan. Councilor Cook requesting the draft report include information on why the
  report was prepared and provide clarification regarding the various median income metrics. There was
  consensus by the Committee for clarification and consistency.
  During the November 13 meeting, the Committee will provide suggested goals for the incoming
  members of the Housing Committee based on information gleaned from the report. Staff is also
  encouraged to provide suggested goals.


Item 7: 2019 Work Plan
  The Committee will maintain the option of meeting on December 11.
  Councilor Duson opened the meeting for comments on any non-agenda items.
  Tyler Plante thanked the Housing and Community Development Department for preparing the Biennial
  Housing Report and noted the chart depicting the age of the housing stock pointed out how low the
  supply of new housing has been in the last ten years.
  George Rhault thanked the Chair for opening the meeting with an opportunity for public comment. He
  noted USM will be hosting historian and author Richard Rothstein on December 5 to speak about his
  new book “The Color of Laws: A Forgotten History of How our Government Segregated America”.
  George also noted other communities within the country are revising their zoning to remove barriers to
  housing other than the traditional single family house. In California, the Governor signed into law ADU
  reform, and Minneapolis-St. Paul, Portland Oregon and Seattle are revising their zoning laws away from
  protecting single-family neighborhoods.
  Seeing no additional requests for comment, the public comment period was closed.
  Motion to adjourn by Councilor Thibodeau, seconded by Councilor Cook (approved 3-0) the meeting
  adjourned at 7:02 P.M.


 Respectfully submitted,


 Victoria Volent

 4
 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division

 TO: Councilor Duson, Chair
 Members of the Housing Committee

 FROM: Victoria Volent, Housing Program Manager
 Housing and Community Development
 DATE: November 5, 2019
 SUBJECT: Disposition of Tax Acquired and City-owned Property



Introduction

This is an update to the October 2, 2019 memo to the Housing Committee regarding the
disposition of tax acquired and City-owned property.


21 Randall Street

21 Randall is a .32 acre, or 13,956 sq. ft., parcel of City-owned land in the R-5 zone that abuts
the Portland Housing Authority’s Front Street development project and has an assessed value of
$11,900.

A Department Survey was conducted for 21 Randall Street, with no stated interest by the City in
retaining the property and support by the Planning Department in selling the parcel for housing.
The Department of Public Works noted there is a major sewer easement through lot 166 B016,
which would preclude development on that side of the property. The easement contains both a
Portland Water District sewer line (from 1976) and an abandoned sewer line. Per Zoning &
Inspections, this lot may be able to support two duplexes, but at 13,956 sq. ft., with a minimum
lot size in the R-5 zone being 6,000 sq. ft., minimum lot width at 60 feet, and minimum street
frontage per lot at 50 feet, development – particularly regarding the sewer easement – would
need to be creative.

Portland Housing Authority has indicated the agency is interested in this parcel as it abuts other
property owned by PHA. PHA has not had an opportunity to complete any due diligence. The
PHA has indicated a hope the city would avail the property at no cost to facilitate the creation of
affordable housing.

The City-Owned and Tax-Acquired Property Committee (COTAPC), at its October 22, 2019,
meeting, recommended to the City Manager that this property be placed out for sale. City staff is
now requesting direction from the Housing Committee regarding a recommendation for sale.
Recommendation for sale by the Committee would be forwarded to the City Council for
approval prior to the selling process. Any purchase requests would return to the City Council for
approval.


99 Capisic Street/Tax-Acquired Property

The City received seven bids on its offer for sale of 99 Capisic Street. After reviewing the bids,
COTAPC unanimously recommended to the City Manager the highest bid of $200,000, which
offeror also wrote a letter that they would renovate the property. The City Manager, upon review
by the Finance Director, is authorized to sell tax-acquired properties if the assessed value is
under $400,000. Since the last Committee update on October 9, the grantee of the Purchase and
Sale Agreement has requested an extension of six months beyond the original October 8
deadline. The title is not clear and may require court action before the grantee is able to obtain
the Title Insurance Commitment.

During a discussion by COTAPC on October 22, the consensus was to move forward with the
requested extension. In the meantime, the property does need to be secured from vandalism.
The City will continue to monitor this property and continue measures to board windows and
doors from entry. Proceeds from the sale would be deposited in the Housing Trust Fund after
payment of any taxes, fees, and the costs to secure the property.


622 Auburn / 165 Lambert Streets

These lots are divided by Washington Avenue Extension at Auburn Street.

Both properties were purchased, together with 13 acres in Falmouth abutting the 622 Auburn
Street property, which the City still owns, in order to create the Auburn Street Connector with
Washington Avenue. This is leftover land from that purchase and construction.

622 Auburn Street

622 Auburn Street abuts the Falmouth property line and contains 4.85 acres of land. Pursuant to
a recent preliminary site assessment report from Jones Associates, Inc. (copy attached for both
622 Auburn Street and 165 Lambert Street as one report), Jones noted that a vernal pool is
mapped on this property but not inspected. To determine if this is a significant vernal pool, this
would need a more indepth assessment, and the optimal timing for an assessment would be
needed during the breeding season to conduct egg mass surveys which would be between April
and May. If significant, MDEP may influence the extent of potential development on the
property.
Jones also noted that there appears to be development opportunity for one or two homes on the
northerly 4.17 acres of upland with potential access from Auburn Street through the right of way
if the vernal pool is not significant. (See Jones map attached.)

If it were rezoned from R-2 to R-3, it could also open up the option of a Planned Residential Unit
Development for approximately 10+/- units.

165 Lambert Street

165 Lambert Street across the street contains 13.38 acres; the topography is very challenging and
does provide for some wetland mitigation.

The Jones Associates report noted the potential for development of one or two homes on the
northerly 4.53 acres of upland area with potential access only from Lambert Street (based on his
understanding that Washington Avenue has restricted access).

Both Properties

The Jones Associates report noted the wetland delineation conducted by Boyle Associates in July
2009, indicated there was approximately 5.43 acres of delineated wetland between the two
properties (18+ acres total for both). After Jones Associates conducted a site visit, it was
observed that there had been no changes to the wetlands and that the delineation by Boyle was
still appropriate to use.

Jones also used the Maine Office of GIS to review available information regarding wetlands of
special significance and stormwater qualifications. There were no wetlands of special
significance observed. When reviewing stormwater qualifications, it was observed that although
the site is not in a lake watershed, the site is downstream of a watershed most at risk from new
development – Highland Lake.

Department Survey Results for Both Properties

A Department Survey was conducted for 622 Auburn/165 Lambert Streets. Results of the survey
show the Parking and School Departments do not have an interest in the parcels. Public Works
would rather not sell either lot, particularly 165 Lambert Street, due to steep topography, much
of it is wetlands, and a large portion of the 622 Auburn Street storm drain discharges into 165
Lambert Street, which flows into the Presumpscot River. The cost of wetland mitigation, storm
water management, and fill would be astronomical and the damage to water quality in the river
significant. However, there might be some developable land in the northwest corner of the
parcel(s). If the parcels are sold, a conservation easement should be placed on the non-
developable portions. Parks and Recreation would like to retain the parcels for a future athletic
complex and open space.

During the October 22 meeting of COTAPC, the consensus was to confirm the status of the
vernal pool through an in-depth assessment, thereby reserving the 622 Auburn Street property
from sale until the assessment is done. Public Works Department will be contacted to provide
additional research on 622 Auburn to identify potential access points for the development of a
right-of-way. To maximize the residential housing potential, the Housing Committee may wish
to discuss recommendations to rezone both parcels (165 Lambert Street and 622 Auburn Street)
from R-2 to R-3. The R-3 zone would allow for the construction of a Planned Residential Unit
Development (PRUD) with a minimum lot area of 6,500 sq ft per dwelling units compared to the
R-2 which allows 1 single-family home for every 10,000 sq ft. The Committee may consider a
stipulation as to whom would pay for the rezoning request (the City or the Developer).

COTAPC, regarding 165 Lambert Street, recommended to the City Manager to move forward
with sale, noting the potential to reserve a conservation easement for the non-developable area.
City staff is now requesting direction from the Housing Committee regarding a recommendation
for sale. Recommendation for sale by the Committee would be forwarded to the City Council
for approval prior to the selling process. Any purchase requests would return to the City Council
for approval.


0 Gray Road, Falmouth

This property contains approximately 13 acres and is assessed by the Town of Falmouth at
$52,600. It is zoned “Mixed Use Cluster District” (MUC), which includes residential. With a
minimum lot size for single-family detached and accessory dwelling units at 20,000 sq. ft., if the
site was deemed 100% developable, it could yield 28 units. It is also noted that the paper streets
in this area have not been vacated by the Town.

Jones Associates preliminary site assessment for this property was not available to include in this
memo by the publishing deadline. The Housing Committee will receive the report as soon as it
is made available.

Information regarding annexation is being prepared by Corporation Counsel and was not
available to include in this memo by the publishing deadline. The Housing Committee will
receive a briefing from Corporation Counsel next week.

City staff will bring this property, and the 622 Auburn Street property, back to the Housing
Committee, after the vernal pool assessment has been conducted, to provide the Committee with
a recommendation.


200 Lambert Street

This property is a leftover piece from when the City built the Washington Avenue extension to
connect to Auburn Street. The land is in the R-2 zone, which requires 10,000 sf for a single-
family dwelling. The City-owned lot is 29,275 sf, so it is buildable. There is additional City-
owned land across the street from this parcel (165 Lambert and 622 Auburn Sts.) that are also in
consideration for sale. When Jeff Levine introduced 200 Lambert Street to the Housing
Committee during the 2-13-2019 meeting, he noted that it is unlikely that the parcel would be
part of a larger housing development, however, he would prefer to hold off on disposing of the
property until such time as as the Planning Department has definitively determined it would not
be needed for any such housing development use.

During the May 21, 2019 meeting of the Housing Committee, the consensus of the Committee
was to hire a broker to sell the property as two single-family homes with Accessory Dwelling
Units. The Committee would like to wait on disposal until after Phase I of the ReCode is
completed as Phase I of the ReCode will address the topic of Accessory Dwelling Units.

91 Douglass and 43 Douglass Street (West School site)
During the February 13, 2019 meeting of the Housing Committee, Jeff Levine presented for
discussion three City-owned parcels as potential residential housing developments. One of lots
was the site of the former West School. After the school was demolished, a portion of the school
lot was included in the master plan for the Dougherty Field complex. However, funding for the
necessary site work for the additional field is not entirely available through City resources. Staff
explored the possibility of taking some portion of the site for housing while leaving the rest for
additional fields. The housing development could pay for another field. However, the more
funding the City seeks for this site, the more challenging it will be to develop affordable housing.
The site is zoned R-5 which would allow for both a field, single-family houses, and a PRUD. If
the site were rezoned B-1 or B-2, such a change would allow for more development density, but
would also be more complexity for the City and the developer. The minimum lot size for a
PRUD is 2 acres. Parks and Recreation has identified a potential future development site that is
not needed for the Dougherty Field Master Plan (known as Option B). The Option B site is 2.85
acres. The Option B site does not include the abutting City-owned lot 078 C002 (43 Douglass
Street) that is .40 acres but it does include the ROW located between 91 and 43 Douglass Street.
The total West School site is 3.25 acres or 141,570 sq. ft.
The minimum lot area per unit in a PRUD is 3,000 sq. ft.; the maximum units per building is 12
units; the maximum length of a building is 140’; and the minimum open space requirement is
300 sq. ft. per unit with a minimum of 6,000 sq. ft. At 141,570 sq. ft., the maximum number of
units allowed is 47. If the City were to obtain the abutting ±7,000 sq.ft. lot of State-owned
property at the corner of Douglass and Congress Sts., then the maximum number of units
allowed would be 49. The large swath of land between the site (Option B) and the highway is
over 90,000 sq. ft. Every 3,000 sq. ft. would represent another housing unit. However, these
calculations do not reflect potential limitations presented by dimensional requirement standards
that may restrict the final unit count.
Since the first presentation to the Housing Committee, various citywide departments have
worked together and continue to gather information for the Housing Committee prior to a
disposal recommendation. The West School site is the location of a former city-dump, which
necessitates two environment reviews involving the City, the U.S. Environmental Protection
Agency, and the Maine Department of Environmental Protection. Funding has been procured
through GPCOG. The ROW has been identified as City-owned (as opposed to vacated). A
natural gas line and gas company easement are located in the ROW and the smaller lot (078
C002) thus precluding development over these sites . A 40’ wide sewer easement is also
identified in the unbuildable site location. The Environmental Site Assessments have proven
lengthy and must allow for up to 4-6 weeks of fieldwork, drilling, sampling, testing, and
analysis. Then the DEP and EPA have up to 30 days to finalize the draft report. Staff will report
out again upon receipt of the finalized report.



Attachments

21 Randall Street Assessment
622 Auburn And 165 Lambert Sts Jones Report
Auburn – Washington Land
0 Gray Road, Falmouth
Falmouth, map of streets
West School site, Option B
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 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division

TO: Councilor Jill Duson, Chair
 Members of the Housing Committee

FROM: Mary Davis, Division Director
 Housing & Community Development

DATE: November 8, 2019

SUBJECT: Affordable Housing Development Loan Program Modification and
 Refinance Request – Unity at Bayside (UAB)

Introduction

Avesta Housing Development Corporation (AHDC) has submitted a request to
modify the terms of three loans from the City of Portland and reinvest those funds in
a refinancing of the project. The project is being refinanced in order complete
repairs to the property. The Unit at Bayside development was constructed in 2001.
The development consists of 33 units in four buildings. The buildings are located at
255 Cumberland Avenue, 10 Stone Street, 24 Stone Street and 180 Oxford Street.
There are 6 one-bedroom units, 10 two-bedroom units and 17 three-bedroom units.
UAB is a mixed income development for individuals and families with incomes
ranging from 40% of the area median income (AMI) to market rates. Twenty-six of
the units are affordable at or below 60% AMI.

AHDC intends to submit a 4% tax credit application to MaineHousing. If approved,
the refinance will provide financing to make needed repairs to the properties.

2001 City of Portland Loan Terms:

City Acquisition Loan: dated November 15, 2000; principal amount $100,000,
interest at 6.1% for a term of 30 years; payment deferred 30 years.

City HOME Loan: dated November 15, 2000; principal amount $86,500; interest at
6.1% for a term of 30 years; payment deferred 30 years during which interest
compounded annually. Original due date December 1, 2030.

City CDBG Loan: dated November 15, 2000; principal $210,176 at 0% interest for a
term of 30 years; annual repayment at 20% of net cash flow. Original due date
December 1, 2030.


 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
Proposed New Loan Terms:

1) Capitalize the accrued interest on the $100,000 acquisition loan and reissue the
 new balance at 0%; currently projected at $303,054
2) Capitalize the accrued interest on the $86,500 HOME Loan and reissue the new
 balance at 0%; currently projected at $262,142
3) Reissue $210,136 CDBG Loan at 0%

Total reissued financing is projected to be approximately $775,332 at 0% for a 30-
year term. Payment would be deferred for 30 years.

Staff Recommendation

The long term stability of the property and the City’s investment warrants approval
of this request. The modified loan terms are similar to the terms provided to the
most recent developers of affordable housing projects in which the City invested
HOME funds. These terms would not be outside of the bounds of the City’s current
lending practices.

Staff supports approval of the request by Avesta Housing Development Corporation
to modify the loan terms and reinvest the debt into the Unity at Bayside project, and
requests that the Committee recommend approval to the City Council subject to the
following conditions:

1. Final commitments from all sources on terms as projected.
2. Receipt of a satisfactory appraisal of the property.
3. Satisfactory completion of the environmental review process; an update to the
 previous environmental review is required.
4. Any substantial changes to the project or the financial investment will be brought
 back to the Housing Committee and the City Council for review and approval.
5. All standard construction loan conditions, including satisfactory review of final
 contract with GC consistent with budgeted estimates, and total contractor
 overhead, profit and general conditions of not to exceed 14% of net construction
 costs.




 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
July 23, 2019


Mary Davis
City of Portland: Housing and Community Development Division
389 Congress Street, Room 312
Portland, ME 04101

Re: City of Portland HOME Funds Application – Project Summary: Unity Village at Bayside


Unity Village at Bayside:

Summary:

Unity at Bayside is a 33-unit affordable family property located across 4 buildings on two contiguous
parcels in the heart of downtown Portland. Three of the four buildings have townhouse style units, each
with their own entrance. The fourth building is more like a double loaded corridor building with a main
entrance that accesses two floors of apartments. Due to this design style there are many addresses
associated with this building and the office is located at the 180 Oxford Street building.

Built in 2001, the property is conveniently located within walking distance of many daily amenities and
services, including a playground directly adjacent to the property; the Portland Community Free Clinic -
.4-mile walking distance; Hannaford Grocery Store - .7-mile walking distance; and Walgreens Pharmacy -
.3-mile walking distance. Comprised of 6 one-bedroom units, 10 two-bedroom units and 17 three-
bedroom units, Unity at Bayside provides a high number of larger units which, combined with their
location, are critical for families seeking affordable housing in Portland.

Unity at Bayside is a mixed income project for individuals and families with incomes ranging from 40%
AMI to Market; 79% (26 of the 33 units) are set aside as affordable housing. There are currently income
and rent restrictions governed by MaineHousing which require that 10 units are set aside for households
at or below 40% AMI, 10 units are set aside for households at or below 50% AMI, and 6 units are set aside
for households at or below 60% AMI. These restrictions were established in 2001, when the project was
originally construction utilizing low-income housing tax credits. The planned re-syndication will keep the
existing AMI restrictions in place for at least the term of the MaineHousing financing.

Avesta acquired Unity at Bayside in 2009 from the original developer. While the property is relatively new,
having been constructed in 2001, it is showing major signs of deterioration and capital needs which far
exceed the existing property reserves. Roofing, safety, security measures, energy efficient upgrades, and
replacement of items that are nearing the end of useful life are included in the rehabilitation scope of
work. The total estimated scope of work across all four buildings is 1-1.1 million dollars.
Project Pictures




255 Cumberland Ave 10 Stone Street




24 Stone Street 180 Oxford Street



Avesta Request:

Avesta Housing is preparing to submit a 4% tax credit “walk-in” application to MaineHousing. The result
of this application will be the re-syndication of the project with a new tax credit investor. In conjunction
with reissued MaineHousing subsidy and new amortizing MaineHousing debt, the 4% tax credit equity will
finance much of the rehabilitation of the property. To help facilitate the preservation of this valuable
affordable housing, Avesta is asking the city for the following:
 1. Capitalize the accrued interest on the $100,000 acquisition loan and reissue the new balance at
 0%; currently projected at $303,054
 2. Capitalize the accrued interest on the $86,500 City of Portland HOME loan and reissue the new
 balance at 0%; currently projected at $262,142.
 3. Reissue $210,136 City of Portland CDBG loan at 0%

Total reissued financing is projected to be approximately $775,332 at 0% for a 30-year term.
May 6, 2019


Mary Davis
City of Portland: Housing and Community Development Division
389 Congress Street, Room 313
Portland, ME 04101

Re: Affordable Housing Application: B5 – Map Showing Location of the Site


Unity at Bayside is a 33-unit mixed income development located within 4 buildings across two parcels in
Portland, Maine. The following information is offered as a clarification of the various addresses
referenced within the Unity at Bayside application.

Tax Parcel 026-H-006 255 Cumberland Ave, Portland ME

 • Building 1 includes 255-259 Cumberland Ave, Portland ME


Tax Parcel 026-F-002 10 Stone Street, 16 Stone Street, 180 Oxford Street

 • Building 2 includes 4-10 Stone Street, Portland ME (10 Stone Street)

 • Building 3 includes 12-24 Stone Street, Portland ME (16 Stone Street)

 • Building 4 includes 176-184 Oxford Street, Portland ME (180 Oxford Street)


24 Stone Street is utilized within the application to reference the property as that is the location of the
Avesta management office.

Thank you for your consideration.

Sincerely,



Patrick Hess
Development Officer
Avesta Housing Development Corporation
Map of Site – Google Maps
 PROJECT NAME: Unity at Bayside Date: 07/23/19
 LOCATION: Portland
 Constr. Type: Acq. Rehab. Max LIHTC Available 109,143
 DEVELOPMENT ASSUMPTIONS LIHTC Alloc. 109,143
 Total Units 33 Inflation Adjustments Yr 1-5 Yr. 6-15 Yr. 16-30 Equity yield 0.83
 HUD 202 Units 3.0% 1 Rent 2.00% 2.50% 3.00% Synd. % 99.99%
 # @ 40% AMI (LIHTC/High HOME) 30.3% 10 Operating Expense 3.00% 3.00% 3.00% Equity Raise 905,794
 # @ 50% AMI (LIHTC/High HOME) 27.3% 9 Other Income 2.00% 2.50% 3.00%
 # @ 60% AMI (LIHTC) 18.2% 6 Debt Coverage Ratio 1.15 Historic Credit FED 0
 # @ Market 21.2% 7 Vacancy 5% Equity yield 0.90
 Appraised Market Value 3,434,400 Market Value/Unit $104,073 Synd. % 99.99%
 Equity Raise 0
 PRO FORMA DEVELOPMENT BUDGET

 (QWHUHGDV
 Residential Per Unit Commercial TDC Historic Credit STATE 0
 Site Improvements 100,000 3,030 0 100,000 Equity yield Equivilent 0.00
5HKDERQ&RVW New Construction 1,132,406 34,315 0 1,132,406 Synd. % 100.00%

7UDFNHU Historic Construction
 General Requirements
 0
 0
 0
 0
 0
 0
 0
 0
 Equity Raise 0

 Builder Profit 0 0 0 0 Solar 7,800
 Bond Premium 0 0 0 0 Equity Yield 0.96
 Solar 30,000 909 0 30,000 Synd. 99.99%
 Construction Contingency 10.00% 126,241 3,825 0 126,241 Equity Raise: 7,487
 Subtotal Construction Costs 1,388,647 42,080 0 1,388,647 MUST DEFER FEE
 Total Equity: 913,281
 Building Permits and Fees 22,400 679 0 22,400
 Survey & Engineering 22,500 682 0 22,500 Gross Square Footage 40,848
 Architectural & Design 40,000 1,212 0 40,000 Construction Cost/Sq ft. 30.17
 Legal 50,000 1,515 0 50,000
 Title & Recording 10,000 303 0 10,000
 Accounting 10,000 303 0 10,000
 Construction Period Tax 0 0 0 0
 Construction Period Insurance 3,500 106 0 3,500
 Other 0 0 0 0
 Subtotal Soft Costs 158,400 4,800 0 158,400 Notes:

 Construction Loan Origination Fees 48,000 1,455 0 48,000
 Construction Loan Interest 50,000 1,515 0 50,000
 Equity Bridge Loan Interest 0 0
 MH Permanent Loan Fees 2,500 76 0 2,500
 Other Permanent Loan Fees 2,500 76 0 2,500
 Other 15,000 455 0 15,000
 Subtotal Finance Costs 118,000 3,576 0 118,000

 Market Survey 0 0 0 0
 Appraisal 6,500 197 0 6,500
 Environmental Study 2,500 76 0 2,500
 LIHTC Fees & Prepaid Monitoring 38,686 1,172 0 38,686
 Relocation Costs 50,000 1,515 0 50,000
 FF&E 55,000 1,667 0 55,000
 Other: Testing 0 0 0 0
 Subtotal Miscellaneous 152,686 4,627 0 152,686

 Acquisition: Buildings 1,376,186 41,703 0 1,376,186
 Acquisition: Land 500,000 15,152 0 500,000
 Acquisition: Existing Reserves 123,814 3,752 0 123,814
 Acquisition: Legal 0 0 0 0
 Acquisition: other 0 0 0 0
 Subtotal Acquisition 2,000,000 60,606 0 2,000,000

 Operating Deficit Escrow 91,363 2,769 0 91,363
 Pre-funded Replacements 49,500 1,500 0 49,500
 Tax & Insurance Escrow 38,417 1,164 0 38,417
 Working Capital 0 0 0 0
 Total Syndication Expenses 0 0 0 0 545,000 265,000
 Consultant Fee 0 0 0 0 Maximum Gross Developer Fee (10%/15%) 499,552
 Developer Overhead 225,000 6,818 0 225,000 Maximum Net Developer Fee (per unit max) 750,000
 Developer Profit 225,000 6,818 0 225,000 Actual Proposed Gross Fee 450,000
 Other 0 0 0 0 % of maximum Gross Fee 90.1%
 Subtotal Fee and Reserves 629,280 19,069 0 629,280 Proposed Net Fee Collected 372,015
 % of Maximum Net Fee 49.6%
 Total Project Costs 4,447,012 134,758 0 4,447,012
 4,268,963 104,722
 Minimum Deferred Fee: 0
 FLOW OF FUNDS
 During Construction 1st Equity Final
Date Estimate: 7/1/20 Occupancy Capital
Sources CLC 25% 50% 75% 100% PLC Milestone Payment Total

Beginning Cash 0 0 0 152,838 0 0 0 0 0

Capital Contribution 100,000 0 0 0 0 813,281 0 0 913,281
Equity Bridge Loan 0 0 0 0 0 0
Construction Loan 1,338,732 347,162 0 194,323 347,162 2,227,378
GP Bridge Loan 0

MH: 0% Deferred Loan - MH 367,200 0 0 0 0 0 367,200
 0% Deferred Loan - City 779,250 0 0 0 0 0 779,250
 5.5% Debt 30/40 Debt 0 0 0 0 0 313,167 313,167
 5.5% IO Debt 0 0 0 0 0 0 0

State Historic Bridge: 0 0 0 0 0 0 0
AHP Subsidized Advance 0 0 0 0 0 850,000 850,000
AHP Direct Subsidy 0 0 500,000 0 0 0 500,000
CHCC FedHOME 0 0 0 0 0 0 0
 0 0 0 0 0 0 0
Existing Reserves 123,184 0 0 0 0 0 123,184
Seller's Note 0 0 0 0 0 522,945 522,945
Development Fee Loan 0 0 0 0 0 77,985 77,985
 0
TOTAL SOURCES 2,708,366 347,162 500,000 347,162 347,162 2,577,378 0 0 6,674,391

Uses

Acquisition 2,000,000 2,000,000
Construction 347,162 347,162 347,162 347,162 1,388,647
Soft Costs 158,400 158,400
Financing Costs 118,000 118,000
Miscellaneous 152,686 0 152,686
Dev Fee 100,000 350,000 0 0 450,000
Reserves 179,280 0 179,280
TOTAL DEV. COSTS 2,708,366 347,162 347,162 347,162 347,162 350,000 0 0 4,447,012

Repay GP Bridge Loan 0 0
Repay Construction Loan 2,227,378 2,227,378
Other Syndication Costs 0 0
SUBTOTAL OTHER ITEMS 0 0 0 0 0 2,227,378 0 0 2,227,378
TOTAL USES OF FUNDS 2,708,366 347,162 347,162 347,162 347,162 2,577,378 0 0 6,674,391

Ending Cash 0 0 152,838 0 0 0 0 0 0



 PROJECT FINANCING COLLATERAL COVERAGE
Source Amount Rate Term Amort. Lien Annual D/S Total Per Unit
 Yr. 1-5 Yr. 6-15 Yr. 16-20 Yr. 21-30 Projected Mortgage 1,530,367 46,375
 Source 1: 0% Deferred Loan - MH 367,200 0.00% 30 1st 0 0 0 0 Appraised Market Value 3,434,400 104,073
 Source 2: 0% Deferred Loan - City 779,250 0.00% 30 2nd 0 0 0 0 Loan to Value Ratio 45%
 Source 3 5.5% Debt 30/40 Debt 313,167 5.50% 30 40 1st 19,383 19,383 19,383 19,383 Market Rent Differential 88,644 224
 Source 4 5.5% IO Debt 0 0.00% 30 1st 0 0 0 0
 Source 5 AHP Subsidized Advance 850,000 3.00% 20 30 1st 43,004 43,004 43,004 0
 Source 6 AHP Direct Subsidy 500,000 0.00% 30 2nd 0 0 0 0 Subsidy per Unit 34,741
 Source 7 CHCC FedHOME 0 0.00% 30 1st 0 0 0 0 Subsidy per Low Income Unit 44,094
 Source 8 0 0.00% 30 1st 0 0 0 0
 Source 9 Seller's Note 522,945 0.00% 30 3rd 0 0 0 0
 Source 10 Development Fee Loan 77,985 0.00% CF CF CF CF MaineHousing Subsidy Limits:
 Source 11 State Historic Bridge: 0
 Source 12 Existing Reserves 123,184 Per Project Max: 0
 Source 13 Net Syndication 913,281 Per LI Unit Max: 0

 Capitalization Gap 0 Actual Reqeust: 367,200
 Request per LI Unit: 14,123
 Total 4,447,012 Subsidy Exceeds Per Project Max
PROPOSED RENT SCHEDULE Maximum Maximum OPERATING EXPENSES
 Gross Net
 LIHTC/HOME Utility Tenant Rents from Market Total Annual Monthly
Type AMI # Units Rents Allow. Rent Applicant Rent Rent Expense Annual Per Unit Per Unit
 Efficiency 40% AMI 0 0 0 0 0 $0 0 Administrative Expenses:
 50% AMI 0 0 0 0 0 $0 0 Management Fees 27,300 827 69
 60% AMI 0 0 0 0 0 $0 0 Management Charges 27,300 827 69
 HUD 202 0 0 0 0 0 $0 0 Marketing Expenses 1,000 30 3
 0 Market 0 0 0 0 0 $0 0 Legal Expenses 500 15 1
 1BR 40% AMI 3 676 34 642 642 $1,014 23,112 Auditing Expenses 5,500 167 14
 50% AMI 2 845 34 811 811 $1,014 19,464 Other Administrative Expenses 4,500 136 11
 60% AMI 1 1,014 34 980 980 $1,014 11,760 Administrative Expenses 66,100 2,003 167
 HUD 202 0 0 34 (34) 0 $1,014 0 Operating Expenses:
 6 Market 0 1,014 0 1,014 1,014 $1,014 0 Janitorial Payroll 0 0 0
 2BR 40% AMI 3 811 42 769 769 $1,216 27,684 Janitorial Supplies and Equipment 0 0 0
 50% AMI 1 1,013 42 971 971 $1,216 11,652 Janitorial Contractual Services 9,752 296 25
 60% AMI 3 1,216 42 1,174 1,174 $1,216 42,264 Fuel and Gas 25,000 758 63
 HUD 202 1 1,013 42 971 971 $1,216 11,652 Electricity 3,400 103 9
 10 Market 2 1,216 0 1,216 1,216 $1,216 29,184 Water and Sewer 35,000 1,061 88
 3BR 40% AMI 4 937 49 888 888 $1,406 42,624 Garbage and Trash Removal 5,101 155 13
 50% AMI 6 1171 49 1,122 1122 $1,406 80,784 Vehicle and Equipment Expenses 0 0 0
 60% AMI 2 1406 49 1,357 1357 $1,406 32,568 Other Operating Expenses 100 3 0
 HUD 202 0 0 49 (49) 0 $1,406 0 Operating Expenses 78,353 2,374 198
 17 Market 5 1406 0 1,406 1406 $1,406 84,360 Maintenance Expenses:
 4BR 40% AMI 0 0 0 0 0 $0 0 Grounds Maintenance Payroll 0 0 0
 50% AMI 0 0 0 0 0 $0 0 Grounds Tools and Supplies 0 0 0
 60% AMI 0 0 0 0 0 $0 0 Grounds Contractual Services 20,500 621 52
 HUD 202 0 0 0 0 0 $0 0 Miscellaneous Ground Maintenance 0 0 0
 0 Market 0 0 0 0 0 $0 0 0 0
 0 Building Maintenance Payroll 0 0 0
 0 Building Tools and Supplies 0 0 0
Subtotals 33 417,108 Building Contractual Services 26,000 788 66
Bedrooms 77 Building Systems Maintenance 25,000 758 63
 Other Income: Rent Differential (5% Esc) (968) (11,616) Miscellaneous Building Maintenance 0 0 0
 Other Income: Commerical Income 0 0 0 0
 Maintenance Expenses 71,500 2,167 181
 9DFDQF\5DWHKLJKHUWKDQ Vacancy Rate 5.42% (21,995) General Expenses:
  Property Taxes 50,000 1,515 126
 Other Income: Laundry 125 1,500 Property and Liability Insurance 11,500 348 29
 Tenant Service Expenses 10,764 326 27
 Effective Gross Income 384,997 Other General Expenses 0 0 0
 General Expenses 72,264 2,190 182
 AFFORDABLE AMORTIZING MORTGAGE CALCULATION
 Replacement Reserve Funding 14,850 450 38
 Effective Gross Income 384,997
 Annual Operating Expense 303,067 Commercial Expenses (if applicable) 0 0 0

 Stabilized NOI 81,930 Total 303,067 9,184 765
 DSC 1.15 10,687
 $ Avail for D/S 71,244
 Other DS 0 Management Costs Analysis
 Balance 71,244 Management Fees 27,300
 Management Charges 27,300
 Affordable Fully Amortizing Mortgage 5.50% 1,045,629 Other Administrative Expenses 4,500 59,100
 Affordable Interest Only Mortgage 5.50% 1,295,338
 Effective Gross Rental Income 383,497
 BREAKEVEN ANALYSIS: RENT SENSITIVITY OCCUPANCY Cost Percentage for use in Management Agreement 15%

 Total Annual Maximum 60% AMI (Non-HERA) Rent Potential 492,216
 Operating Expense 303,067 Gross Revenues 405,492 Management Cost Percentage 12.01%
 Debt Service 62,386
 Management Costs are too high
 Breakeven Rent 923 Breakeven Occupancy 90%
PROFORMA OPERATING INCOME AND EXPENSE STATEMENT
YEAR 1 2 3 4 5 6 7 8 9 10 11
 Lease Up Stabilized
 Mos: 6 7/2/21 7/2/22 7/2/23 7/1/24 7/2/25 7/2/26 7/2/27 7/1/28 7/2/29 7/2/30 7/2/31 First Year End: 12/31/2021
Effective Gross Income 192,499 384,997 392,697 400,551 408,562 416,733 427,152 437,830 448,776 459,996 471,495 483,283
Less Operating Expense 126,534 253,067 260,659 268,479 276,533 284,829 293,374 302,175 311,240 320,578 330,195 340,101
Net Operating Income 65,965 131,930 132,038 132,072 132,029 131,904 133,778 135,655 137,536 139,418 141,300 143,182

 TIF Revenue 0 0 0 0 0 0 0 0 0 0 0 0
 Real Estate Tax 25,000 50,000 51,500 53,045 54,636 56,275 57,964 59,703 61,494 63,339 65,239 67,196
 Effective Real Estate Tax (25,000) (50,000) (51,500) (53,045) (54,636) (56,275) (57,964) (59,703) (61,494) (63,339) (65,239) (67,196)

After Tax NOI 40,965 81,930 80,538 79,027 77,393 75,629 75,814 75,953 76,042 76,079 76,062 75,986

Less RLP Repay 9,691 19,383 19,383 19,383 19,383 19,383 19,383 19,383 19,383 19,383 19,383 19,383 Total Cash Flow
Less Other Repay 21,502 43,004 43,004 43,004 43,004 43,004 43,004 43,004 43,004 43,004 43,004 43,004 Projected over 12 Years

Cash Flow 9,772 19,544 18,152 16,641 15,006 13,242 13,428 13,566 13,656 13,693 13,675 13,600 190,928
Cash Flow per Unit 296 592 550 504 455 401 407 411 414 415 414 412

Debt Coverage Ratio 1.31 1.31 1.29 1.27 1.24 1.21 1.22 1.22 1.22 1.22 1.22 1.22

Principal Balance (1-4) 1,459,617 1,457,403 1,455,065 1,452,594 1,449,984 1,447,227 1,444,315 1,441,238 1,437,987 1,434,553 1,430,926 1,427,094

Principal Balance (5-10) 1,950,930 1,855,199 1,836,913 1,818,070 1,798,655 1,778,649 1,758,035 1,736,793 1,714,906 1,692,353 1,669,113 1,645,167

Operating Reserve Balance 91,363 92,734 94,125 95,537 96,970 98,424 99,901 101,399 102,920 104,464 106,031 107,621



PROFORMA OPERATING INCOME AND EXPENSE STATEMENT, continued
YEAR 12 13 14 15 16 17 18 19 20 21 22
 7/1/32 7/2/33 7/2/34 7/2/35 7/1/36 7/2/37 7/2/38 7/2/39 7/1/40 7/2/41 7/2/42
Effective Gross Income 495,365 507,749 520,443 533,454 546,790 563,194 580,090 597,492 615,417 633,880 652,896
Less Operating Expense 350,304 360,813 371,637 382,787 394,270 406,098 418,281 430,830 443,755 457,067 470,779
Net Operating Income 145,061 146,936 148,805 150,667 152,520 157,096 161,809 166,663 171,663 176,813 182,117

 TIF Revenue 0 0 0 0 0 0 0 0 0 0 0
 Real Estate Tax 69,212 71,288 73,427 75,629 77,898 80,235 82,642 85,122 87,675 90,306 93,015
 Effective Real Estate Tax (69,212) (71,288) (73,427) (75,629) (77,898) (80,235) (82,642) (85,122) (87,675) (90,306) (93,015)

After Tax NOI 75,849 75,648 75,379 75,038 74,622 76,860 79,166 81,541 83,987 86,507 89,102

Less RLP Repay 19,383 19,383 19,383 19,383 19,383 19,383 19,383 19,383 19,383 19,383 19,383
Less Other Repay 43,004 43,004 43,004 43,004 43,004 43,004 43,004 43,004 43,004 0 0

Cash Flow 13,463 13,262 12,992 12,652 12,235 14,474 16,780 19,155 21,601 67,124 69,719
Cash Flow per Unit 408 402 394 383 371 439 508 580 655 2,034 2,113

Debt Coverage Ratio 1.22 1.21 1.21 1.20 1.20 1.23 1.27 1.31 1.35 4.46 4.60

Principal Balance (1-4) 1,427,094 1,423,045 1,418,769 1,414,251 1,409,478 1,404,436 1,399,110 1,393,483 1,387,539 1,381,259 1,374,625 1,367,617

Principal Balance (5-10) 1,723,153 1,620,493 1,595,068 1,568,870 1,541,875 1,514,059 1,485,397 1,455,863 1,425,430 1,394,072 1,022,945 1,022,945

Operating Reserve Balance 107,621 109,236 110,874 112,537 114,225 115,939 117,678 119,443 121,235 123,053 124,899 126,772



PROFORMA OPERATING INCOME AND EXPENSE STATEMENT, continued
YEAR 23 24 25 26 27 28 29 30
 7/2/43 7/1/44 7/2/45 7/2/46 7/2/47 7/1/48 7/2/49 7/2/50
Effective Gross Income 672,483 692,657 713,437 734,840 756,885 779,592 802,980 827,069
Less Operating Expense 484,903 499,450 514,433 529,866 545,762 562,135 578,999 596,369
Net Operating Income 187,580 193,208 199,004 204,974 211,123 217,457 223,981 230,700
 TIF Revenue 0 0 0 0 0 0 0 0
 Real Estate Tax 95,805 98,679 101,640 104,689 107,830 111,064 114,396 117,828
 Effective Real Estate Tax (95,805) (98,679) (101,640) (104,689) (107,830) (111,064) (114,396) (117,828)
After Tax NOI 91,775 94,528 97,364 100,285 103,294 106,393 109,584 112,872
Less MaineHousing RLP Repay 19,383 19,383 19,383 19,383 19,383 19,383 19,383 19,383
Less Other Repay 0 0 0 0 0 0 0 0
Cash Flow 72,393 75,146 77,982 80,903 83,911 87,010 90,202 93,489
Cash Flow per Unit 2,194 2,277 2,363 2,452 2,543 2,637 2,733 2,833

Debt Coverage Ratio 4.73 4.88 5.02 5.17 5.33 5.49 5.65 5.82

Principal Balance (1-4) 1,367,617 1,360,214 1,352,393 1,344,131 1,335,403 1,326,183 1,316,443 1,306,153 1,295,282

Principal Balance (5-10) 1,100,930 1,022,945 1,022,945 1,022,945 1,022,945 1,022,945 1,022,945 1,022,945 1,022,945

Operating Reserve Balance 126,772 128,674 130,604 132,563 134,552 136,570 138,618 140,698 142,808
 Client: Avesta Housing
  Property: Unity Village at Bayside
  Location: Cumberland Ave and Stone, Oxford & Myrtle Sts.
 Portland, Maine
Year Built: Circa 2001 (Cumberland Ave. Bldg may be a bit older)
 Age: Approx. 20 years Capital Needs Assessment
 No. Units 16 Flats + 17 Townhomes = 33 Capital Expenditure (CapEx) Planning
  No. Beds 6@one + 10@two + 17@three = 77
 No. Baths 33 full + 15 half + office restroom = 49
 Components & Scope of Work (SOW) Budget, Current Dollars Schedule, Years Planning Notes
Line
 Category Quantity Age Remaining Duration Code Compliance Common
Item Unit Item Expected Other Notes or Explanation,
 Report Observed Effective Useful Life of Accessibility or
 No. Description Repair-Replacement or Corrective Action Count Unit Cost Budget Useful Life if required
 Section Condition or Range or Range Work MSHA Quality Stds Units


 1 Site: Land Forms & Improvements
 Concrete repair - spalled risers & cracked treads at building
 2 6.1.3 All bldgs - entrance pads & stairs Fair 1 Lot $ 5,000 $ 5,000 30 n.a.. 0 1 Common As soon as possible
 entrances
 3 6.1.1 Rear line retaining walls Poor Repair displaced blocks at wall ends, mortar top courses 1 Lot $ 1,000 $ 1,000 30 n.a.. 1 1 Common Year 1
 Arborist services - Remove 6 overgrown trees along rear lines.
 4 6.1.6 Street-side trees & shrubbery around bldgs Poor Prune all street- front trees. Clear shrubbery behind Oxford St. 1 Lot $ 18,000 $ 18,000 19 n.a.. 1 1 Common Years 1 & 20
 Bldg. Crew of 4, three trucks & chipper - three days
 Regrade and pave walkways between rear doors & parking lot or
 5 6.1.3 Rear walkways Poor 120 SY $ 20 $ 2,400 30 18 1 1 Life Safety Common Year 1
 sidewalk - at upper Stone .& Oxford St Bldgs.
 Close access to rear yards - upper Stone St. Bldg & behind
 6 6.1.1 Chain-link fence & gates n.a.. 70 LF $ 50 $ 3,500 30 18 1 1 Security Common Year 1
 Management Office
 7 6.1.1 Secure exit gates for chain-link fence n.a.. Regrade and pave walkway between rear doors & parking lot 2 each $ 1,250 $ 2,500 30 18 1 1 Security & Life Safety Common Year 1
 Re-set curbs & stops, spot pavement repairs, crack seal, shim,
 8 6.1.2 Parking areas and rear patio Good 850 SY $ 18 $ 15,300 25 18 7 1 Common Year 7
 overlay & re-stripe
 6.1.4
 9 Building utility services & drains Good Contingency item for underground piping & wiring repairs 1 Allowance $ 10,000 $ 10,000 10 n.a.. 10 1 Common Years 10 & 20
 6.1.5
 10 6.1.3 Sidewalks Good Common City-responsible
 11 6.1.7 Pole-mounted lights Good Common City-responsible
 12 6.1.6 General groundskeeping Good Common Funded under O&M
 13
 14 Architecture: Structure, Building Envelope, and Exterior Construction
 15 6.2.5 Rear roof surfaces, Stone St bldgs Poor Remove, carpentry repairs, re-flash & replace shingles 58 Square $ 500 $ 29,000 25 25 0 1 Common As soon as possible
 16 6.2.4 Rear screen doors - Stone & Oxford bldgs Poor Replace wood-framed screens with alum. combi-storm & screen 12 Each $ 650 $ 7,800 20 20 1 1 Energy Efficiency Common Year 1 & 20
 17 6.2.4 Unit & common bldg entrance doors Good Inspect, repair or replace weather-stripping & sweeps 36 Each $ 200 $ 7,200 20 20 1 1 Energy Efficiency Common Year 1 & 20
 18 6.2.3 Repair exterior ceilings over entrances Poor-Fair Carpentry & vinyl work 11 Each $ 750 $ 8,250 40 n.a.. 1 1 Common Year 1
 19 6.2.5 Balcony decking & roof membrane Poor-Fair Remove, carpentry repairs, re-flash & replace EPDM & Trex 16 Each $ 6,000 $ 96,000 30 29 1 2 Common In Years 1&2 Improve edge flashing detail
 20 6.2.3 Balcony posts, rails & trim Poor-Fair Carpentry repairs & re-paint 16 Each $ 1,200 $ 19,200 30 29 1 2 Common In Years 1&2 concurrent with decking
 Overall vinyl & carpentry repairs, and replacements as req'd. Re-
 21 6.2.3 Siding, trim & entrance doors - all bldgs Good 32,000 SF $ 2.00 $ 64,000 30 n.a.. 2 2 Common Years 2&3
 caulking joints and re-painting appropriate surfaces
 Replace remaining original windows. In Years 2&3 concurrent with siding work.
 22 6.2.4 Windows Poor-Fair 172 Each $ 920 $ 158,240 40 n.a.. 2 2 Energy Efficiency Common
 Cost based on 2013 replacements by Rich Aluminum 27 windows in 16 openings have been replaced.
 23 6.2.5 Rear roof surfaces, Cumberland Ave bldg Fair Remove, carpentry repairs, re-flash, replace shingles & EPDM 50 Sq = 100 SF $ 600 $ 30,000 25 20 5 1 Common Year 5
 24 6.2.5 Front roof surfaces, Stone St bldgs Fair Remove, carpentry repairs, re-flash, replace shingles & EPDM 35 Sq = 100 SF $ 600 $ 21,000 25 18 5 1 Common Year 5
 25 6.2.5 Roof surfaces, Oxford St bldg Good Common Recently replaced, not anticipate next 20 years
 26 6.2.5 Front roof surfaces, Cumberland Ave bldg Good Common Recently replaced, not anticipate next 20 years
 27 6.2.3 Brick veneer surfaces Good Common Repair as-need basis under O&M
 28
 29 Interiors: Finishes, Fixtures & Equipment - Common
 30 6.2.2 Utility Room floor - 4 Stone St Poor Carpentry repairs & new drain pan/connections 1 Lot $ 7,000 $ 7,000 40 n.a.. 0 1 Common Immediate
 Entrance door sill & hardware, reduce appliance count, rearrange
 31 6.3.9 Laundry Room arrangement Fair 1 Lot $ 2,000 $ 2,000 20 n.a.. 0 1 ADA Compliance Common As soon as possible
 equipment & provide folding table(s)
 Replace landing flooring, repair treads, risers & handrails, repair
 32 6.3.6 Cumberland Ave. stairwell Fair 1 Lot $ 9,500 $ 9,500 15 n.a.. 3 1 Common Years 3 & 18
 walls & ceilings, re-paint
 Management Offices, Meeting Room & Laundry
 33 6.3.6 Good General repairs, re-paint, replace flooring 1 Lot $ 6,000 $ 6,000 15 n.a.. 3 1 Common Years 3 & 18
 Room
 34
 35 Interiors: Finishes, Fixtures & Equipment - Units
 Walls, ceilings, doors, misc. fixtures and smoke Repaired & re-painted at Tenant roll-overs along with flooring
 36 Good Units Funded under O&M budgets
 detectors repairs & carpet shampooing
 37 6.3.5 Ceiling & wall-hung light fixtures Good Replace remaining original fixtures with LED 272 Each $ 175 $ 47,600 40 n.a.. 1 1 Energy Efficiency Units Approx. 10% already replaced
 Replace with similar. Includes re-covering stairs from street varies, Years 1-4 & 11-14. Budgets may be reduced for
 38 6.3.1 Flooring - carpet & resilient Fair-good with resilient, and re-covering stairs to second level with carpet. 31 Units $ 4,750 $ 147,250 10 mostly 1 4 Units second iteration if resilient remains in good
 Cost based on two 2017 replacements by Sherwin-Williams original condition.
 Replace gas-fired with electric. Includes gas pipe removal &
 39 6.3.3 Cooking ranges - existing gas n.a.. 28 Each $ 1,600 $ 44,800 15 20 0 1 Life safety Units Year 1 & 17-20
 capping, and allowance for new 240 VAC circuit & outlet
 40 6.3.3 Cooking ranges - existing electric Fair-good Replace with similar. Includes install & disposal 5 Each $ 750 $ 3,750 15 20 2 1 Units Year 2 & 16
 41 6.3.3 Under/over refrigerator-freezers Fair-good Replace with Energy Star. Includes install & disposal 33 Each $ 900 $ 29,700 15 20 2 5 Energy Efficiency Units Years 1-5 & 16-20
 Replace with similar, but with LED light. Includes install &
 42 6.3.3 Range hood - recirculating Fair-good 33 Each $ 250 $ 8,250 15 20 1 1 Energy Efficiency Units Years 1-5 & 16-20
 disposal
 Establish annual budget to replace in two Units per
 43 6.3.4 Tub & shower surround Good Replace with similar, but 4-piece 2 Each $ 2,100 $ 4,200 1 20 1 1 Units
 year - Years 1-17
 Replace with similar - includes cabinet, counter, sink & Establish annual budget to replace in two Units per
 44 6.3.4 Bathroom vanity Good 2 Each $ 1,200 $ 2,400 1 20 1 1 Units
 medicine chest (or, for ADA, wall-hung lav & chest) year - Years 1-17
 45 6.3.3 Kitchen counters & sink Poor-Fair Replace with similar, including plumbing 11 Each $ 1,200 $ 13,200 20 20 1 1 Units Year 1
 Remaining 22 - Establish annual budget to replace
 46 6.3.3 Kitchen counters & sink Poor-Fair Replace with similar 2 Each $ 1,200 $ 2,400 1 20 2 1 Units
 in two Units per year . Years 2-12
 Establish annual budget to replace in two Units per
 47 6.3.3 Kitchen cabinets Good Replace with similar 2 Each $ 3,250 $ 6,500 1 20 1 1 Units
 year - Years 1-17
 48




 Page1 of 4 - August 3, 2018
49 Systems: Mechanical, Electrical & Plumbing
 24 soffit & 32 wall-hung. Replace with LED.
 6.1.1 Security and Year 1 - concurrent with vinyl work.
50 Exterior ceiling & wall-hung light fixtures Fair-Good Change some to photo-eye controlled for security. Add 60 Each $ 300 $ 18,000 25 20 1 1 Common
 6.1.7 Energy Efficiency Night-time quantity check required
 additional fixtures to illuminate dark areas.
 Water savings Common &
51 6.3.4 Toilets n.a.. Replace current with low-flow, ADA height 49 Each $ 750 $ 36,750 40 n.a.. 1 1 Year 1
 Accessibility Units
 Replace current with low-flow, supply ADA hand-held wands Water savings Common &
52 6.3.4 Shower heads n.a.. 33 Each $ 75 $ 2,475 40 n.a.. 1 1 Year 1
 where required Accessibility Units
 Common &
53 6.3.4 Faucet aerators n.a.. Replace current with flow-reducing devices 67 Each $ 25 $ 1,675 40 n.a.. 1 1 Water savings Year 1
 Units
54 6.4.3 Management Offices & Meeting Room n.a.. Install mini-split heat pumps 2 Each $ 6,000 $ 12,000 20 n.a.. 3 1 Common Concurrent with Year 4 interior work
55 6.4.2 Domestic hot water heat exchanger tanks Good Contingencies for unscheduled replacements 1 Allowance $ 2,500 $ 2,500 5 n.a.. 5 1 Common Years 5, 10, 15 & 20.
56 6.4.3 Gas-fired boilers, controls & pumps Good Contingencies for unscheduled significant repair or replacement 1 Allowance $ 7,500 $ 7,500 10 n.a.. 10 1 Common Years 10 & 20
 6.4.1
57 Plumbing & heating piping Good Common Repair as-need basis under O&M
 6.4.3
58 6.4.4 Electrical panels & wiring Good Common Repair as-need basis under O&M




 Page2 of 4 - August 3, 2018
 Client: Avesta Housing
 Property: Unity Village at Bayside
 Location: Cumberland Ave and Stone, Oxford & Myrtle Sts.
 Portland, Maine
 No. Units 33 Capital Needs Assessment
 Inflation 3%
 20-Year Projection Capital Expenditure (CapEx) Annual Budgets


 Asset Inventory & Scope of Work (SOW) Years
Line
 Category Immediate Short-Term Near-Term Long - Term
Item
 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
 No. Description Repair-Replacement or Corrective Action
 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

 1 Site: Land Forms & Improvements
 Concrete repair - spalled risers & cracked treads at building
 2 All bldgs - entrance pads & stairs $5,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 entrances
 3 Rear line retaining walls Repair displaced blocks at wall ends, mortar top courses $0 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Arborist services - Remove 6 overgrown trees along rear lines.
 4 Street-side trees & shrubbery around bldgs Prune all street- front trees. Clear shrubbery behind Oxford St. $0 $18,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $18,000
 Bldg. Crew of 4, three trucks & chipper - three days
 Regrade and pave walkways between rear doors & parking lot
 5 Rear walkways $0 $2,400 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 or sidewalk - at upper Stone .& Oxford St Bldgs.
 Close access to rear yards - upper Stone St. Bldg & behind
 6 Chain-link fence & gates $0 $3,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Management Office
 7 Secure exit gates for chainlink fence Regrade and pave walkway between rear doors & parking lot $0 $2,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Re-sert curbs & stops, spot pavement repairs, crack seal, shim,
 8 Parking areas (3) $0 $0 $0 $0 $0 $0 $0 $15,300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 overlay & re-stripe
  9 Building utility services Contingency item for underground piping & wiring repairs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,000
 10 Sidewalks $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 11 Pole-mounted lights $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 12 General goundskeeping $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 13
 14 Architecture: Structure, Building Envelope, and Exterior Construction
 15 Rear roof surfaces, Stone St bldgs Remove, carpentry repairs, re-flash & replace shingles $29,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 16 Rear screen doors - Stone & Oxford bldgs Replace wood-framed screens with alum. combi-storm & screen $0 $7,800 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,800
 17 Unit & common bldg entrance doors Inspect, repair or replace weather-stripping & sweeps $0 $7,200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,200
 18 Repair exterior ceilings over entrances Carpentry & vinyl work $0 $8,250 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 19 Balcony decking & roof membrane Remove, carpentry repairs, re-flash & replace EPDM & Trex $0 $48,000 $48,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 20 Balcony posts, rails & trim Carpentry repairs & re-paint $0 $9,600 $9,600 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Overall vinyl & carpentry repairs, and replacements as req'd. Re-
 21 Siding, trim & entrance doors - all bldgs $0 $0 $32,000 $32,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 caulking joints and re-painting appropriate surfaces
 Replace remaining original windows.
 22 Windows $0 $0 $79,120 $79,120 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Cost based on 2013 reoplacements by Rich Aluminum
 23 Rear roof surfaces, Cumberland Ave bldg Remove, carpentry repairs, re-flash, replace shingles & EPDM $0 $0 $0 $0 $0 $30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 24 Front roof surfaces, Stone St bldgs Remove, carpentry repairs, re-flash, replace shingles & EPDM $0 $0 $0 $0 $0 $21,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 25 Roof surfaces, Oxford St bldg $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 26 Front roof surfaces, Cumberland Ave bldg $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 27 Brick veneer surfaces $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 28
 29 Interiors: Finishes, Fixtures & Equipment - Common
 30 Utility Room floor - 4 Stone St Carpentry repairs & new drain pan/onnections $7,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Entrance door sill & hardware, reduce appliance count,
 31 Laundry Room arrangement $2,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 rearrange equipment & provide folding table(s)
 Replace landing flooring, repair treads, risers & handrails, repair
 32 Cumberland Ave. stairwell $0 $0 $0 $9,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 walls & ceilings, re-paint
 Management Offices, Meeting Room &
 33 General repairs, re-paint, replace flooring $0 $0 $0 $6,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Laundry Room
 34
 35 Interiors: Finishes, Fixtures & Equipment - Units
 Walls, ceilings, doors, misc. fixtures and smoke Repaired & re-painted at Tenant roll-overs along with flooring
 36 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 detectors repairs & carpet shampooing
 37 Ceiling & wall-hung light fixtures Replace remaining original fixtures with LED $0 $47,600 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Replace with similar. Includes re-covering stairs from street
 38 Flooring - carpet & resilient with resilient, and re-covering stairs to second level with carpet. $0 $36,813 $36,813 $36,813 $36,813 $0 $0 $0 $0 $0 $0 $36,813 $36,813 $36,813 $36,813 $0 $0 $0 $0 $0 $0
 Cost based on two 2017 replacements by Sherwin-Williams
 Replace gas-fired with electric. Includes gas pipe removal &
 39 Cooking ranges - existing gas $44,800 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,250 $5,250 $5,250 $5,250
 capping, and allowance for new 240 VAC circuit & outlet
 Replace gas-fired with electric. Includes gas pipe removal &
 40 Cooking ranges - existing electric $0 $0 $3,750 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,750 $0 $0 $0 $0
 capping, and allowance for new 240 VAC circuit & outlet
 41 Under/over refrigerator-freezers Replace with Energy Star. Includes install & disposal $0 $5,940 $5,940 $5,940 $5,940 $5,940 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,940 $5,940 $5,940 $5,940 $5,940
 Replace with similar, but with LED light. Includes install &
 42 Range hood - recirculating $0 $1,650 $1,650 $1,650 $1,650 $1,650 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,650 $1,650 $1,650 $1,650 $1,650
 disposal
 43 Tub & shower surround Replace with similar, but 4-piece $0 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $2,100 $0 $0 $0
 Replace with similar - includes cabinet, counter, sink & medicine
 44 Bathroom vanity $0 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $1,200 $0 $0 $0
 chest (or, for ADA, wall-hung lav & chest)
 45 Kitchen counters & sink Replace with similar, including plumbing $0 $13,200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 46 Kitchen counters & sink Replace with similar, including plumbing $0 $0 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $0 $0 $0 $0 $0 $0 $0 $0
 47 Kitchen cabinets, counters & sink Replace with similar $0 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $3,250 $0 $0 $0
 48




 Page 3 of 4 - August 3, 2018
 20-Year Projection Capital Expenditure (CapEx) Annual Budgets


 Asset Inventory & Scope of Work (SOW) Years
Line
 Category Immediate Short-Term Near-Term Long - Term
Item
 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
 No. Description Repair-Replacement or Corrective Action
 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

 49 Systems: Mechanical, Electrical & Plumbing
 24 soffit & 32 wall-hung. Replace with LED.
 50 Exterior ceiling & wall-hung light fixtures Change some to photo-eye contolled for security. Add $0 $18,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 additional fixtures to illuminate dark areas.
 51 Toilets Replace current with low-flow, ADA height $0 $36,750 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Replace current with low-flow, supply ADA hand-held wands
 52 Shower heads $0 $2,475 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 where required
 53 Faucet aerators Replace current with flow-reducing devices $0 $1,675 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 54 Management Offices & Meeting Room Install mini-split heat pumps $0 $0 $0 $0 $12,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 55 Domestic water makers Contingencies for unscheduled replacements $0 $0 $0 $0 $0 $2,500 $0 $0 $0 $0 $2,500 $0 $0 $0 $0 $2,500 $0 $0 $0 $0 $2,500
 56 Gas-fired boilers, controls & pumps Contingencies for unscheduled significant repair or replacement $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,500
 57 Plumbing & heating piping $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 58 Electrical panels & wiring $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 78
 79 Annual Total, Current Dollars = $87,800 $285,453 $232,373 $186,523 $71,903 $76,590 $15,500 $30,800 $15,500 $15,500 $35,500 $52,313 $52,313 $49,913 $49,913 $15,600 $24,440 $19,390 $12,840 $12,840 $65,840
 80 Annual Total, Inflated Dollars = $87,800 $285,453 $239,344 $197,882 $78,570 $86,203 $17,969 $36,777 $19,063 $19,635 $46,319 $70,304 $72,413 $71,163 $73,298 $23,596 $38,077 $31,115 $21,223 $21,859 $115,451
 81
 82 Annual Total/Unit, Current Dollars = $2,661 $8,650 $7,042 $5,652 $2,179 $2,321 $470 $933 $470 $470 $1,076 $1,585 $1,585 $1,513 $1,513 $473 $741 $588 $389 $389 $1,995
 83 Annual Total/Unit, Inflated Dollars = $2,661 $8,650 $7,253 $5,996 $2,381 $2,612 $545 $1,114 $578 $595 $1,404 $2,130 $2,194 $2,156 $2,221 $715 $1,154 $943 $643 $662 $3,499
 84
 85 Range Totals, Current Dollars = $87,800 $285,453 $567,388 $468,200
 86 Range Totals, Inflated Dollars = $87,800 $285,453 $601,998 $678,262
 87
 88 Years 0-5 Total, Current Dollars = $940,640 Years 1-20 Total, Current Dollars = $1,321,040 Years 0-20 Total, Current Dollars = $1,408,840
 89 Years 0-5 Total, Inflated Dollars = $975,250 Years 1-20 Total, Inflated Dollars = $1,565,712 Years 0-20 Total, Inflated Dollars = $1,653,512
 90
 91 Years 0-5 Total/Unit, Current Dollars = $28,504 Years 1-20 Total/Unit, Current Dollars = $40,032 Years 0-20 Total/Unit, Current Dollars = $42,692
 92 Years 0-5 Total/Unit,Inflated Dollars = $29,553 Years 1-20 Total/Unit,Inflated Dollars = $47,446 Years 0-20 Total/Unit,Inflated Dollars = $50,106
 93
 Average Annual Budget/Unit, Years 0-
 94 $1,425 Average Annual Budget/Unit, Years 1-20,Current = $2,002 Average Annual Budget/Unit, Years 0-20, Current Dollars = $2,135
 5,Current =
 Average Annual Budget/Unit, Years 0-5,
 95 $1,478 Average Annual Budget/Unit, Years 1-20, Inflated = $2,372 Average Annual Budget/Unit, Years 0-20, Inflated Dollars = $2,505
 Inflated =




 Page 4 of 4 - August 3, 2018
 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division


To: Avesta Unity at Bayside File
From: Mary Davis, HCD Division Director
Date: November 7, 2019

Executive Summary
Avesta will be submitting a 4% tax credit “walk-in” application to MaineHousing. The purpose of
the application is the resyndication of the project with a new tax credit investor. The request also
includes reissued MaineHousing subsidy, new MaineHousing debt and reinvest of previous City
subsidy into the project. This will enable Avesta to finance repairs to the property which in turn
will preserve valuable affordable housing.

Sources and Uses
 Sources Uses
 Maine Housing Deferred Loan $367,200 Construction (Rehab) Hard Costs $1,262,406
 City of Portland Deferred Loan $779,250 Hard & Soft Cost Contingencies $126,241
 5.5% Debt 30/40 Debt $313,167 Financing & Soft Costs $429,086
 FHLB Subsidized Advance $850,000 Acquisition $2,000,000
 FHLB Direct Subsidy $500,000 Reserves $179,280
 Seller’s Note $522,945 Developer Fee $450,000
 Development Loan Fee $77,985
 Existing Reserves $123,184
 Net Syndication Proceeds $913,281
 Total Sources: $4,447,012 Total Uses: $4,447,013

Avesta is in the initial stages of putting together the financing package for the Unity at Bayside
development. Federal Home Loan Bank financing has been obtained. An application to
MaineHousing is pending. Avesta has a Letter of Intent from Northern New England Housing
Investment Fund to invest in the tax credits. Development loan fee and seller’s note will be paid at
out of permanent loan closing.

For analysis of “Uses,” see Development Budget.

Development Budget
Overall, the development budget appears to be consistent with both industry standards and the recent
experience in the greater Portland market. The $134,758 cost per unit is below the average cost per unit of
$190,274 determined by an analysis of all projects underwritten since 2016. However the average cost per
unit is slightly higher ($10,776) than the average cost of similar rehab projects.
 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
Construction Costs:
Construction costs are based on a Capital Needs Assessment which included an expenditure
estimate. The rehabilitation cost estimate is for $42,080 per unit, which is $34 per square foot, and
includes a 10% contingency.

Soft Costs:
Soft costs are in the mid-range for a project of this scale. Developer fee is slightly high, at 11.79% of total
development costs (less reserves and developer fee).

Contingency:
Hard cost contingency is budgeted at lower than the industry standard 12% for rehabilitation. Soft cost
contingency is 2%, lean but adequate considering the project has already incurred much of its soft cost
budget. Construction period interest is largest remaining soft cost, and it is budgeted generously.

Acquisition:
Cost of acquisition is budgeted at $2,000,000 ($1,876,186 for building and land and $123,814 for existing
reserves. An appraisal will need to be reviewed when available to complete an analysis of this costs.

Operating Budget & 20 Year Cashflow Projection
The operating budget provided by the developer combines the income and expenses, including reserves, to
demonstrate the overall adequacy of the budget.

Project Income:
Rents for LIHTC supported units are budgeted at the maximum allowable rate for each unit type. Avesta has
extensive experience with mixed unit properties. Their actual property management experience does not
suggest lower demand for market rate units in their mixed income buildings.

Operating Expense
This project includes four separate buildings. This accounts for higher than normal operating expenses. Total
operating expenses are $9,184 per unit. Administrative and utility expenses are $2,003 and $1,924 respectively
which are higher than average project expenses per unit of all projects underwritten since 2016. Maintenance
budget is healthy at $2,617 per unit – important for mixed income and family housing.

20 Year Cashflow & Debt Service Coverage Ratio (DSCR

Year 1 debt service coverage is 1.31, with standard income and expense inflators of 2% for income and 3% for
expenses. The pro forma escalates residential income and other income at 2.5% in years 6 thru 15 and 3% in
years 16-30. Without this escalation, the DSCR would drop below acceptable levels.

Developer Financials
Avesta closed out 2018 in good financial condition, with current assets of $11.6 million and current liabilities of
$10.2 million. The resulting Current Ratio (current assets divided by current liabilities) is 1.14, a bit lean but
manageable for the scale of their operations. Of that current liability, $4.4 million was current portion of long
term debt, which was subsequently refinanced in 2019, per note in audit. Net assets were $138 million, up $2
million over 2017. There has been annual, substantial growth in net assets since 2012, with net assets more
than doubling in 7 years (2012 net assets were $66 million).
 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
In 2018, revenues were $35.6 million, down $1.6 million from 2017 due to reduced developer fee and lower
“other” income. Avesta’s tenant and subsidy income was up $1.3 million in 2018, consistent with Avesta’s
growing real estate portfolio. Operating expenses were also up in almost every category, with wages up over
$900,000. 2018 net operating income was $7.1 million. Depreciation resulted in a paper loss of $6.2 million,
but this paper loss was more than outweighed by the capital contributions from tax credit investors, i.e the
growth in real estate portfolio, resulting in growth in net assets. Performance in 2018 is not problematic in
itself, but the trend lines which have been positive have dipped. As Avesta’s real estate portfolio grows, Avesta
and its funders need to pay attention to finding the correct scale for long term sustainable operations.

This developer has the financial capacity to intervene in a development facing unexpected setbacks and or cost
over-runs to keep the development process moving forward. Their financial strength as an organization
(unrestricted net assets of $21 million) mitigates the risk inherent in any construction project.




 389 Congress Street Room 312 • Portland, Maine 04101
 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov
 Development Budget with
 Permanent Sources
Date 11/6/2019
Project Name Unity at Bayside
Project Address 225 Cumberland Avenue, 10 Stone Street, 24 Stone Street, 180 Ocford Street
Developer/Sponsor Avesta Housing Development Corporation

Total Units 33 correct this
Total Square Feet 40,848 correct this
 Initial Application Values
 Total Per Unit Per Sq Ft
Sources of Funds
 Permanent Financing - 1st Lien $680,367 $20,617 $17
 Permanent Financing - City of Portland $779,250 $23,614 $19
 Equity (LIHTC/tenant contributions) $913,281 $27,675 $22
 Deferred development fee $77,985 $2,363 $2
 Other AHP Subsidized Advance $850,000 $25,758 $21
 Other AHP Direct Subsidy $500,000 $15,152 $12
 Other Seller's Note $522,945 $15,847 $13
 Other Existing Reserves $123,184 $3,733 $3
Total Sources of Funds $4,447,012 $134,758 $109
Uses of Funds

Hard Costs
 Site Improvements $100,000 $3,030 $2
 Rehabilitation $1,132,406 $34,315 $28
 New Construction $0 $0
 Contractor's Profit, Overhead, & Gen. Requirements 0.0% $0 $0
 Hazardous Materials abatement (if contracted separately) $0 $0
 Demolition Cost (if contracted separately) $0 $0
 Bond Premium $0 $0
 Other Solar $30,000 $909 $1
 Hard Cost Contingency (% of hard costs) 10.0% $126,241 $3,825 $3
Total Hard Costs $1,388,647 $42,080 $34

Soft Costs
 Building Permit & Fees $22,400 $679 $1
 Survey & Engineering $22,500 $682 $1
 Design & Permitting (% of const exp) 5.1% $40,000 $1,212 $1
 Borrower Legal (all closings, excluding syndication legal) $50,000 $1,515 $1
 Title & Recording $10,000 $303 $0
 Accounting $10,000 $303 $0
 Construction Period Taxes $0 $0
 Construction Period Insurance $3,500 $106 $0
 Other: FF&E, Security $0 $0
 Other $0 $0
Total Soft Costs $158,400 $4,800 $4

Financing Costs
  Construction Loan Origination Fees $48,000 $1,455 $1
  Construction Period Interest $50,000 $1,515 $1
  Lender Inspection Fees $0 $0
  Letter of Credit Fee $0 $0
  Permanent Loan Fee $5,000 $152 $0
  Construction Lender Legal $0 $0
  Other $15,000 $455 $0
Total Financing Costs $118,000 $3,576 $3
Miscellaneous
 Market Survey $0 $0
 Appraisal $6,500 $197 $0
 Environmental Study $2,500 $76 $0
 LIHTC Fees -- prepaid monitoring $38,686 $1,172 $1
 Other: Commissioning $0 $0
 Relocation Costs $50,000 $1,515 $1
 Other FF&E $55,000 $1,667 $1
 Soft Cost Contingency (% of soft costs excl Dev Fee) 0.00% $0 $0
Total Miscellaneous: $152,686 $4,627 $7

Acquisition
 Acquisition: Buildings $1,376,186 $41,703 $34
 Acquisition: Land $500,000 $15,152 $12
 Acquisition: Legal $0 $0
 Other Existing Reserves $123,814 $3,752 $3
Total Acquisition $2,000,000 $60,606 $49

Reserves and Developer Fee
 Operating Deficit Escrow $91,363 $2,769 $2
 Prefunded Replacement Reserve $49,500 $1,500 $1
 Taxes & Insurance Escrow $38,417 $1,164 $1
 Developer Overhead $225,000 $6,818 $6
 Developer Profit $225,000 $6,818 $6
 Rent Up Reserve & Marketing $0 $0
 Other $0 $0
Total Reserves and Developer Fee $629,280 $19,069 $15

Total Uses of Funds $4,447,013 $134,758 $112

 Developer Fee Analysis: Total Fees: $450,000
 (excluding reserves & developer fee) Percent TDC: 11.79%
 Project Operating Pro Forma
Date November 6, 2019
Project Name Unity at Bayside
Project Address 225 Cumberland Avenue, 10 Stone Street, 24 Stone Street and 180 Ox
Developer/Sponsor Avesta Housing Development Corporation


Rental Income
 Restriction  Per Unit Per Unit Per Unit Total Total
 Unit Number Per Unit Total Utility Rent
 on % Monthly Monthly Net Rent Monthly Net Annual
 Type of Units Sq Ft Sq Ft Deductions Subsidy
 Median Inc. Gross Rent Net Rent Per Sq Ft Income Net Rent
1 BR 3 0 40% $676 $34 $642 #DIV/0! $1,926  $23,112
1 BR 2 0 50% $845 $34 $811 #DIV/0! $1,622  $19,464
1 BR 1 0 60% $1,014 $34 $980 #DIV/0! $980  $11,760
2 BR 3 0 40% $811 $42 $769 #DIV/0! $2,307  $27,684
2 BR 1 0 50% $1,013 $42 $971 #DIV/0! $971  $11,652
2 BR 3 0 60% $1,216 $42 $1,174 #DIV/0! $3,522  $42,264
2 BR 1 0 60% $1,013 $42 $971 #DIV/0! $971  $11,652 HUD 202
2 BR 2 0 $1,216 $0 $1,216 #DIV/0! $2,432  $29,184 Market
3 BR 4 0 40% $937 $49 $888 #DIV/0! $3,552  $42,624
3 BR 6 0 50% $1,171 $49 $1,122 #DIV/0! $6,732  $80,784
3 BR 2 0 60% $1,406 $49 $1,357 #DIV/0! $2,714  $32,568
3 BR 5 0 $1,406 $0 $1,406 #DIV/0! $7,030  $84,360 Market
Total: 33 0 $34,759 $417,108
Operating Expenses
Rent Increase Rate 2.0%
Expenses Increase Rate 3.0% Note: Year 1 is the first full year of stabilized operations

 Year 1 Year 1/Unit Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Income
  Sch. Gross Income - Residential $417,108 $12,640 $425,450 $433,959 $442,638 $451,491 $460,521 $469,731 $479,126 $488,709 $498,483
  Vacancy Loss 5.273% ($21,994) ($666) ($22,434) ($22,883) ($23,340) ($23,807) ($24,283) ($24,769) ($25,264) ($25,770) ($26,285)
  Other income (laundry) ($10,116) ($307) ($10,318) ($10,525) ($10,735) ($10,950) ($11,169) ($11,392) ($11,620) ($11,853) ($12,090)
  Supportive Services Funding $0
Effective Gross Income $384,998 $11,667 $392,698 $400,552 $408,563 $416,734 $425,069 $433,570 $442,242 $451,086 $460,108

Administrative
  Management Fee $27,300 $827 $28,119 $28,963 $29,831 $30,726 $31,648 $32,598 $33,576 $34,583 $35,620
  Management Charges $27,300 $827 $28,119 $28,963 $29,831 $30,726 $31,648 $32,598 $33,576 $34,583 $35,620
  Marketing Expense $1,000 $30 $1,030 $1,061 $1,093 $1,126 $1,159 $1,194 $1,230 $1,267 $1,305
  Legal $500 $15 $515 $530 $546 $563 $580 $597 $615 $633 $652
  Audit & Accounting $5,500 $167 $5,665 $5,835 $6,010 $6,190 $6,376 $6,567 $6,764 $6,967 $7,176
  Admin Other $4,500 $136 $4,635 $4,774 $4,917 $5,065 $5,217 $5,373 $5,534 $5,700 $5,871
Total Administrative $66,100 $2,003 $68,083 $70,125 $72,229 $74,396 $76,628 $78,927 $81,295 $83,734 $86,246

Supportive Services $0

Utilities
  Fuel & Gas $25,000 $758 $25,750 $26,523 $27,318 $28,138 $28,982 $29,851 $30,747 $31,669 $32,619
 Natural Gas $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
  Electric $3,400 $103 $3,502 $3,607 $3,715 $3,827 $3,942 $4,060 $4,182 $4,307 $4,436
  Water / Sewer $35,000 $1,061 $36,050 $37,132 $38,245 $39,393 $40,575 $41,792 $43,046 $44,337 $45,667
  Other $100 $3 $103 $106 $109 $113 $116 $119 $123 $127 $130
Total Utilities $63,500 $1,924 $65,405 $67,367 $69,388 $71,470 $73,614 $75,822 $78,097 $80,440 $82,853
Maintenance Year 1  Year 1/Unit Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
  Grounds $20,500 $621 $21,115 $21,748 $22,401 $23,073 $23,765  $24,478 $25,212 $25,969 $26,748
  Janitorial $9,752 $296 $10,045 $10,346 $10,656 $10,976 $11,305  $11,644 $11,994 $12,354 $12,724
  Trash Removal $5,101 $155 $5,254 $5,412 $5,574 $5,741 $5,913 $6,091 $6,274 $6,462 $6,656
  Security $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
  Equipment & Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
  Maintenance $25,000 $758 $25,750 $26,523 $27,318 $28,138 $28,982  $29,851 $30,747 $31,669 $32,619
  Maintenance Contracts $26,000 $788 $26,780 $27,583 $28,411 $29,263 $30,141  $31,045 $31,977 $32,936 $33,924
  Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Maintenance $86,353 $2,617 $88,944 $91,612 $94,360 $97,191 $100,107 $103,110 $106,203 $109,389 $112,671

Taxes & Insurance
  Real Estate Taxes or PILOT $50,000 $1,515 $51,500 $53,045 $54,636 $56,275 $57,964 $59,703 $61,494 $63,339 $65,239
  Payroll Taxes / Fidelity Bond /
 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
  Workers Comp / Health Ins.
  Insurance (property, liability) $11,500 $348 $11,845 $12,200 $12,566 $12,943 $13,332 $13,732 $14,144 $14,568 $15,005
  Other Tenant Services Expense $10,764 $326 $11,087 $11,420 $11,762 $12,115 $12,478 $12,853 $13,238 $13,636 $14,045
Total Taxes & Insurance $72,264 $2,190 $74,432 $76,665 $78,965 $81,334 $83,774 $86,287 $88,876 $91,542 $94,288

Replacement Reserves $14,850 $450 $15,296 $15,754 $16,227 $16,714 $17,215 $17,732 $18,264 $18,812 $19,376
Operating Reserves $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Expenses $303,067 $9,184 $312,159 $321,524 $331,169 $341,105 $351,338 $361,878 $372,734 $383,916 $395,434

Net Operating Income $81,931 $2,483 $80,539 $79,028 $77,393 $75,630 $73,731 $71,692 $69,507 $67,170 $64,674

Debt Service
  First Lien $19,383 $587 $19,383 $19,383 $19,383 $19,383 $19,383 $19,383 $19,383 $19,383 $19,383
  Second Lien $43,004 $1,303 $43,004 $43,004 $43,004 $43,004 $43,004 $43,004 $43,004 $43,004 $43,004
  Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Debt Service (Must Pay) $62,387 $1,891 $62,387 $62,387 $62,387 $62,387 $62,387 $62,387 $62,387 $62,387 $62,387

Cash Flow (after Must Pay Debt) $19,544 $592 $18,152 $16,641 $15,006 $13,243 $11,344 $9,305 $7,120 $4,783 $2,287
Debt Service Coverage Ratio 1.31 1.29 1.27 1.24 1.21 1.18 1.15 1.11 1.08 1.04

Cash Flow Debt Payments
 DHCD 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Developer Fee Loan 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cash Flow Retained by Project $19,544 $592 $18,152 $16,641 $15,006 $13,243 $11,344 $9,305 $7,120 $4,783 $2,287
Retained Cash Flow % 6%
Operating Expenses
Rent Increase Rate 2.0%
Expenses Increase Rate 3.0%

 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Income
  Sch. Gross Income - Residential $508,452 $518,621 $528,994 $539,574 $550,365 $561,372 $572,600 $584,052 $595,733 $607,648
  Vacancy Loss 5.3% ($26,811) ($27,347) ($27,894) ($28,452) ($29,021) ($29,601) ($30,193) ($30,797) ($31,413) ($32,041)
  Other income (laundry) ($12,331) ($12,578) ($12,830) ($13,086) ($13,348) ($13,615) ($13,887) ($14,165) ($14,448) ($14,737)
  Supportive Services Funding
Effective Gross Income $469,310 $478,696 $488,270 $498,036 $507,997 $518,156 $528,520 $539,090 $549,872 $560,869

Administrative
  Advertising $36,689 $37,790 $38,923 $40,091 $41,294 $42,533 $43,808 $45,123 $46,476 $47,871
  Office Payroll & Benefits $36,689 $37,790 $38,923 $40,091 $41,294 $42,533 $43,808 $45,123 $46,476 $47,871
  Office Supplies, Phone, Misc. $1,344 $1,384 $1,426 $1,469 $1,513 $1,558 $1,605 $1,653 $1,702 $1,754
  Mngr or Super Rent Free Unit $672 $692 $713 $734 $756 $779 $802 $826 $851 $877
  Audit & Accounting $7,392 $7,613 $7,842 $8,077 $8,319 $8,569 $8,826 $9,091 $9,363 $9,644
  Admin Other $6,048 $6,229 $6,416 $6,608 $6,807 $7,011 $7,221 $7,438 $7,661 $7,891
Total Administrative $88,833 $91,498 $94,243 $97,070 $99,982 $102,982 $106,071 $109,253 $112,531 $115,907

Supportive Services

Utilities
  Fuel Oil $33,598 $34,606 $35,644 $36,713 $37,815 $38,949 $40,118 $41,321 $42,561 $43,838
  Electric $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
  Gas $4,569 $4,706 $4,848 $4,993 $5,143 $5,297 $5,456 $5,620 $5,788 $5,962
  Water / Sewer $47,037 $48,448 $49,902 $51,399 $52,941 $54,529 $56,165 $57,850 $59,585 $61,373
  Other $134 $138 $143 $147 $151 $156 $160 $165 $170 $175
Total Utilities $85,339 $87,899 $90,536 $93,252 $96,049 $98,931 $101,899 $104,956 $108,104 $111,348
Maintenance Year 11  Year 12  Year 13  Year 14  Year 15  Year 16  Year 17  Year 18  Year 19  Year 20
  Janitorial $27,550 $28,377 $29,228 $30,105 $31,008 $31,938 $32,896 $33,883 $34,900 $35,947
  Exterminating $13,106 $13,499 $13,904 $14,321 $14,751 $15,193 $15,649 $16,119 $16,602 $17,100
  Trash Removal $6,855 $7,061 $7,273 $7,491 $7,716 $7,947 $8,186 $8,431 $8,684 $8,945
  Security $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
  Grounds $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
  Maintenance $33,598 $34,606 $35,644 $36,713 $37,815 $38,949 $40,118 $41,321 $42,561 $43,838
  Elevator, HVAC, pool contracts $34,942 $35,990 $37,070 $38,182 $39,327 $40,507 $41,722 $42,974 $44,263 $45,591
  Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Maintenance $116,051 $119,533 $123,119 $126,812 $130,617 $134,535 $138,571 $142,728 $147,010 $151,421

Taxes & Insurance
  Real Estate Taxes or PILOT $67,196 $69,212 $71,288 $73,427 $75,629 $77,898 $80,235 $82,642 $85,122 $87,675
  Payroll Taxes / Fidelity Bond / Workers
 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
  Comp / Health Ins.
  Insurance (property, liability) $15,455 $15,919 $16,396 $16,888 $17,395 $17,917 $18,454 $19,008 $19,578 $20,165
  Other $14,466 $14,900 $15,347 $15,807 $16,282 $16,770 $17,273 $17,791 $18,325 $18,875
Total Taxes & Insurance $97,117 $100,030 $103,031 $106,122 $109,306 $112,585 $115,963 $119,441 $123,025 $126,715

Replacement Reserves $19,957 $20,556 $21,173 $21,808 $22,462 $23,136 $23,830 $24,545 $25,281 $26,040
Operating Reserves $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Expenses $407,297 $419,516 $432,101 $445,064 $458,416 $472,169 $486,334 $500,924 $515,951 $531,430

Net Operating Income $62,014 $59,181 $56,169 $52,972 $49,581 $45,988 $42,186 $38,166 $33,921 $29,439

Debt Service
  First Lien $19,383 $19,383 $19,383 $19,383 $19,383 $19,383 $19,383 $19,383 $19,383 $19,383
  Second Lien $43,004 $43,004 $43,004 $43,004 $43,004 $43,004 $43,004 $43,004 $43,004 $43,004
  Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Debt Service (Must Pay) $62,387 $62,387 $62,387 $62,387 $62,387 $62,387 $62,387 $62,387 $62,387 $62,387

Cash Flow (after Must Pay Debt) ($373) ($3,206) ($6,218) ($9,415) ($12,806) ($16,399) ($20,201) ($24,221) ($28,466) ($32,948)
Debt Service Coverage Ratio 0.99 0.95 0.90 0.85 0.79 0.74 0.68 0.61 0.54 0.47

Cash Flow Debt Payments
 DHCD 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 Developer Fee Loan 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cash Flow Retained by Project ($373) ($3,206) ($6,218) ($9,415) ($12,806) ($16,399) ($20,201) ($24,221) ($28,466) ($32,948)
Retained Cash Flow % 6%
 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division

  TO: Councilor Duson, Chair
 Members of the Housing Committee

  FROM: Victoria Volent, Housing Program Manager
 Housing and Community Development
  DATE: November 8, 2019
  SUBJECT: 2019 Biennial Housing Report amendments



Introduction

The following is an update of changes to the 2019 Biennial Housing Report based on comments
received from the Housing Committee during their October 9 meeting.


Index and Definitions

An attachment has been added to the report regarding the definitions of area median income and
associated metrics. The definition of American Community Survey has been expanded. The
definition of Household, Fair Market Rent, and Income have been added. Moreover, the
definition of Portland, ME HUD Metro Fair Market Rent Area (HMFA), Portland-South
Portland Housing Market Area (HMA), and Portland-South Portland, ME Metropolitan
Statistical Area (MSA) have been edited.

Executive Summary

An introduction has been added explaining the impetus and intent of the report. The term
median income was reviewed to ensure it reflects the correct metric.

Housing Demographics

A paragraph was added explaining the term median income - how it is defined, and how it is
differentiated by users. The term median income was reviewed to ensure it reflects the correct
metric.
Housing Affordability

The term median income was reviewed to ensure it reflects the correct metric.

Housing Supply

No changes

Housing Demand

No changes

Housing Resources

No changes

Housing Toolbox

The chart Inclusionary Zoning Development Projects: December 2015- October 2019 was added.

Attachment A: Income

An extended examination and explanation of the term Area Median Income along with a
comprehensive explanation of the metrics; Portland – South Portland, ME Metropolitan
Statistical Area; Portland, ME HUD Metro Fair Market Rent Area; Portland – South Portland
Housing Market Area; and MaineHousing Portland – South Portland Metropolitan Area
Housing Market are included. Moreover, HUD income limits were added and defined.
Housing
 NOVEMBER 2019
 Planning & Urban
 Development,
 Housing & Community




Report
 Development Division




 CITY OF PORTLAND, MAINE
 City of Portland Housing Committee

 COUNCILOR JILL DUSON, CHAIR
 COUNCILOR KIM COOK
 COUNCILOR SPENCER THIBODEAU


 Planning and Urban Development Department
 Christine Grimando, AICP, Acting Director
 Housing and Community Development Division
 Mary Davis, Division Director
 Victoria Volent, Housing Program Manager




Design courtesy of Stacey Willis Dand; Photography courtesy of Corey Templeton & Stacey Willis Dand
 2
 Table of Contents

Executive Summary (p.3-5)

Definition of Terms (p.6-7)

 I. Housing Demographics (p. 8-14)
 a. Population
 b. Household Tenure
 c. Household Age Distribution
 d. Employment, Wages, and Income
 e. Income by Housing Type
 f. Poverty

 II. Housing Affordability (p.15-19)
 a. Affordability Index & Affordability Gap
 b. Interpreting Income Levels
 c. Household Income Distribution
 d. Wages and the Cost of Rental Housing
 e. Household Income Distribution
 f. Housing-Cost Burdened

 III. Housing Supply (p.20-28)
 a. Residential Property Characters
 b. Age of Housing Stock
 c. Vacancy Rates
 d. Housing Availability
 e. Planning Board Approval Activity
 f. Housing Supply: Certificate of Occupancy
 g. Place of Development
 h. Short Term Rentals
 i. Home Sales
 j. Development Costs
 k. Labor Shortage

 IV. Housing Demand (p.29-34)
 a. Federal Resources
 b. Condominiums
 c. Multi-Family Rentals
 d. Single-Family Houses
 e. Low-Income Housing/Homelessness
 f. Student Housing
 g. Desirability



 1
Table of Contents
 V. Housing Resources (p.35-41)
 a. Federal Resources
 • HOME Investment Partnership Program
 • Community Development Block Grant (CDBG)
 • Emergency Solutions Grants Program (ESG)
 • Neighborhood Stabilization Program (NSP)
 • Lead Safe Housing
 • Brownfield Economic Development Initiative (BEDI)
 b. Local Resources
 • Housing Trust Fund (HTF)
 • Affordable Housing Tax Increment Financing (AHTIF)
 • Housing Development Fund (HDF)
 • Selling/Leasing City-Owned and Tax Acquired Property
 VI. Housing Toolbox (p.41-53)
 a. Inclusionary Zoning
 b. Hotel Inclusionary Zoning
 c. Housing Replacement Ordinance regarding the Housing Trust Fund
 d. Reduced Fees for Developing Affordable Housing
 e. Downtown Height Overlay District Amendment
 f. B-1, B-1b Amendment
 g. Allowing Accessory Structure in R-3 and R-5 Zones to be converted to dwelling units
 h. R-6 Zone in the vicinity of Boyd, Oxford, and Mayo Street Rezoned to R-7
 i. Multi-Family Density Standard Amendment
 j. R-6A Zone
 k. R-6A Zone
 l. Rezoning 89 Anderson Street
 m. R-5A Zone Amendment
 n. IR-1 and IR-2 Accessory Dwelling Unit (ADU) Amendment for Peaks Island
 o. Reduced Parking Requirements & Fee-in-lieu Option
 p. Priority Review
 q. India Street Form Based Code (IS-FBC)
 r. Amendment to Zoning Ordinance for Greater Density and Height
 s. B-1 and B-1b Neighborhood Business Zone
 t. Munjoy Hill Neighborhood Conservation Overlay District
 u. Nonconforming Use and Nonconforming Buildings
 v. Transportation Improvements to Allow for Greater Density
 w. Short Term Rentals
 x. Portland Water District Efficiency and Repair Services Program
 y. Healthy Neighborhoods Program
 z. Rental Housing Advisory Committee
 aa. Housing Safety
 • Rental Housing Registration/Inspections
 • Fire Department Inspection Program
 VII. Attachment A Income (p.53-55)
 2
 Executive Summary
 CITY OF PORTLAND HOUSING REPORT 2019
 The biennial Housing Report has been prepared by the Housing and Community Development Division,
 Planning and Urban Development Department at the request of the City Council’s Housing
 Committee. This report is designed to give an overview of the current housing market and report out on
  the many policies and initiatives the City has adopted to address the issues of housing availability and
 affordability.

Housing Stability
Housing stability promotes economic prosperity and the well-being of communities. Economic health in turn is a
driving force behind housing demand and a link to housing costs. Attracting and retaining a diversified
workforce relies on a healthy housing market as much as employment opportunities. The lack of affordable
housing impedes the City’s goals for future growth.


The Comprehensive Plan Goal
This goal is for 75% of employees in Portland to be able to live in the City. This contemplates a production goal of
2,557 housing units over the next ten years, or 256 units per year. The Workforce Housing Study from 2015 found that,
of all the housing produced, currently 29% is affordable at the area median income. Based on City residents’ income,
that number should be between 53% and 62%. Therefore, of the goal of 256 units produced a year, 136 to 159 should
be affordable at the median income. The current Affordable Housing Fund application sets a goal of 65 to 90 units
affordable at or below the area median income, based on available funding.

Despite market obstacles (cost of materials and a labor shortage) and geographical limitations, Portland continues to
create housing for all age and income groups. That said, there are a number of housing challenges and issues that
have been identified in this report.


Some of the challenges are listed below:
 Portland’s estimated median income in 2018 of $51,799, places the city towards the bottom of the Portland –
 South Portland Metropolitan Area Housing Market.

 The three largest job sectors (office administration, sales, and food preparation and service) within the
 Portland- South Portland labor market are some of the lowest paying jobs.

 Per MaineHousing, to purchase the median priced home in Portland of $316,000, a household would need
 an income of $102,173, which is almost double the actual Portland median income of $51,799.

 Portland’s largest household group, at 20% of the population, is low-income households.

 47% of renter-occupied households and 29% of owner-occupied households pay 30% or more of their
 income towards housing costs.

 54% of Portland’s housing stock was built pre-1950, which is the riskiest housing for lead hazards.

 Increased demand and limited home-building activities have contributed to a significant decline in available
 housing inventory. 3
Executive
Summary

 Within this backdrop, Portland is utilizing a wide variety of programs,
 planning, and deregulatory policies towards the creation and preservation of
 housing.




At the recommendation of the Housing Committee, the City Council
approved subsidies during 2018 and 2019 in the amount of $2,073,439 in
HOME funds, $280,000 i n CDBG funding, $1,961,734 in Housing Trust Funds,
and $13,846,142 in Affordable Housing Tax Increment Financing to create or
rehabilitate 418 affordable and market rate housing units and a 40 room
women’s lodging house. Eight of the 418 units are single-family houses. Portland’s
Recent updates to the city code supports increasing residential density and
 Planning Board
height, providing incentives for creating affordable housing, backing the approved 2,300
implementation of form-based codes, encouraging the creation of affordable units of residential
accessory dwelling units, mandating inclusionary zoning, reducing lot size,
 housing from 2014
 expediting affordable housing administrative review, facilitating infill
 development, reducing development fees for the creation of affordable
 to August of 2019.
housing, and reducing parking minimums.

Portland’s Planning Board approved 2,300 units of residential housing
from 2014 to August of 2019. This equates to approximately 383 units per
year, which is greater than the Comprehensive Plan goal of 256 units per
year. Inclusionary Zoning was adopted by Portland on October 19, 2015.
Since then, 59 inclusionary zoning units have been approved by the Planning
Board and $826,500 has been collected as a fee-in-lieu. These fees are
deposited into the City’s Housing Trust fund and have been allocated to
subsidize the creation of 492 units of affordable housing. Additionally,
Portland is protecting against the loss of long-term rental units from leaving
the local market to host short-term guests through its short-term rental
ordinance.


 4
 Executive
 Summary
The Maine Medical Center Healthy Neighborhoods Program will fund and execute housing and community
improvement programs in the surrounding St. John Valley and other neighborhoods.

Improvements to the city's transportation infrastructure both on- and off-peninsula will in part better
accommodate greater housing density.

The new Portland Rental Housing Advisory Committee will provide the Housing Committee with
recommendations or proposals for improvements, modifications, or changes regarding landlord and tenant policy
issues, and identify educational opportunities, seminars, and materials that would be useful to landlords and
tenants.

The Housing Safety Office administers a rental housing registration and inspection program for residential rental
properties. The focus of residential inspections is now on one and two-unit properties and short-term rental units.

Finally, Portland is proud to embrace the Metro Regional Coalition Council Resolution regarding the housing
affordability crisis in the Greater Portland region by affirming we will continue to focus local and federal resources
on the creation of new housing that is affordable at all income levels with the goal of producing 2,577 housing units
(256 units per year) by 2027. Portland recognizes the need to ensure a supply of safe, inclusive, affordable housing
that strengthens our community, bolsters our economy, contributes to the quality of life of our residents, and
population diversity.




 5
 Definition of Terms
 The following list of terms are provided for reference, and were compiled from municipal and and
 U.S. Department of Housing and Urban Development definitions and interpretations.
AFFORDABLE HOUSING. The term “affordable housing”
means that the percentage of income a household is HUD. The United States Department of Housing &
charged in rent and utilities, or must pay in monthly Urban Development. HUD's mission is to create
mortgage payments (including insurance and taxes), does strong, sustainable, inclusive communities and
not exceed 30% of a household’s gross income. quality affordable homes for all.


AMERICAN COMMUNITY SURVEY (ACS). Conducted by the INCLUSIONARY ZONING. Development projects that
U. S. Census Bureau, the survey is sent to a small create ten or more new dwelling units for rent or for
percentage of the population on a rotating basis through sale and are required to ensure at least 10% of the
the decade. The ACS is an ongoing survey that provides units in the project meet the definition of workforce
vital information on a yearly basis abut the nation and its housing unit for sale or for rent.
people. Area Median Income is derived from the data
collected in the American Community Survey 5-Year INCOME. The U.S. Department of Housing andUrban
Estimates. Development (HUD) annually computes income levels
 for Portland. The Maine State Housing Authority
AREA MEDIAN INCOME (AMI). See INCOME definition (MSHA) also annually computes income levels for
 Portland. The data sets used by HUD and MSHA are
COMMUNITY DEVELOPMENT BLOCKGRANT similar but not the same. Please see Attachment A for
PROGRAM (CDBG). Created under the Housing and a detailed discussion of Income, Area Median Income,
Community Development Act of 1974, this program and Income levels.
provides grant funds to local and state governments to
develop viable urban communities by providing decent LOW INCOME. See INCOME definition.
housing with a suitable living environment and expanding
economic opportunities to assist low and moderate- LOW INCOME HOUSING UNIT FOR RENT. The rent
income residents. affordable to a household earning at or below 80% of
 the Area Median Income (AMI) as determined by HUD.
EXTREMELY LOW-INCOME. See INCOME definition.
 LOW INCOME HOUSING UNIT FOR SALE. The sale
FAIR MARKET RENT (FMR). Payment determined price affordable to a household earning at or below
and reported by HUD for the metro fair market rent area. 80% of the Area Median Income (AMI) as determined
 by HUD.
HOME. The HOME Investment Partnerships Program
 MAINE STATE HOUSING AUTHORITY. Maine Housing
provides formula grants to states and localities
 is the leading provider of affordable housing
that community’s use- often in partnership with local
 resources in Maine, helping Maine people to obtain
nonprofit groups- to fund a wide range of activities that
 and maintain quality affordable housing.
build, buy, and/or rehabilitate affordable housing for rent
of home ownership.
 MEDIAN INCOME. See INCOME definition.
HOUSEHOLD. Includes all persons occupying a housing
 MODERATE INCOME. See INCOME definition.
unit and they do not need to be related. One person
occupying a housing unit is a household as is one or more
persons who occupy a housing unit. 6
 Definition of Terms
NATIONAL ASSOCIATION OF HOME BUILDERS. NAHB
produces in-depth economic analyses of the home building industry
based on private and government data. Builders, home buyers, and
renters are surveyed to gain insight into the issues and trends driving the
industry.

NATIONAL LOW INCOME HOUSING COALITION. NLIHC is dedicated solely
to achieving socially just public policy that ensures people with the lowest
incomes in the United States have affordable and decent homes.

PORTLAND, ME HUD METRO FAIR MARKET RENT AREA (HMFA).
Comprised of 19 towns and cities within Cumberland County and 4 towns
in York County as determined and reported by HUD. This custom
geographic definition area is used in the calculation of income limit
program parameters, such as the CDBG and HOME programs. HMFA is a
subsection of the larger Metropolitan Statistical Area (MSA).

PORTLAND-SOUTH PORTLAND HOUSING MARKET AREA (HMA).
Comprised of 68 towns and cities within Cumberland, Sagadahoc, and
York Counties as determined and reported by HUD.

PORTLAND-SOUTH PORTLAND, ME METROPOLITAN STATISTICAL AREA
(MSA). Comprised of 68 towns and cities within Cumberland, Sagadahoc,
and York Counties as determined and reported by HUD (coterminous with
the HMA).

TAX INCREMENT FINANCING (TIF). A flexible financing tool authorized
under state law. The TIF program allows municipalities to provide
financial assistance to local economic development or affordable housing
development projects by using new property tax revenue generated as a
result of the new development. TIF revenue can be used to pay for public
or private projects.

VERY LOW-INCOME. See INCOME definition.

WORKFORCE HOUSING UNIT FOR RENT. Means a dwelling unit is
affordable to a household earning at or below 100% of the Area Median
Income as determined by HUD.

WORKFORCE HOUSING UNIT FOR SALE. Means a dwelling unit for which
the purchase price is affordable to a household earning at or below 120% Photo courtesy of Jeff Swanson
of the Area Median Income as determined by HUD. 7
 DEMOGRAPHICS
 Underlying demographic shifts—in particular, changing income and age
 structure of the population—shape the type, quantity, quality, and
 location of housing.

Population
 Portland’s population grew by an estimated 223 people from 2010 to 2018

 Lewiston’s population grew by an estimated 648 people from 2010 to 2018

 Bangor’s population grew by an estimated 1,042 people from 2010 to 2018

A municipality’s population size is an indicator of the needs of the residents; larger communities tend to have a
larger percent of people requiring additional services from their community.

Portland is the largest city in Maine with an estimated 2018 population of 66,417 people. Based on U.S. Census
data, Portland grew by 223 people from 2010 to 2018. In comparison, the second largest city in Maine in 2018 is
Lewiston with 36,592 people. Lewiston gained 648 people from 2010 to 2018. Bangor, with a 2018 population of
33,039 is the third largest Maine city. Bangor grew by 1,042 people during that same period




 8
 DEMOGRAPHICS
 CITY OF PORTLAND - HOUSING REPORT 2017 - WWW.PORTLANDMAINE.GOV/HOUSING


Household Tenure
 56% of Portland households are renter occupied

 44% of Portland households are owner occupied

 Renter occupied households has increased by 2% since 2010

Per the 2017 American Community Survey (ACS) 5-year estimates, Portland had 30,167 total
housholds. Of those households, 56% were renter occupied and 44% were owner occupied. This is a slight change
of +2% and -2% respectively from 2010 when Portland had 30,686 total households with 54% renter occupied and
46% owner occupied.




Source: U.S. Census Bureau 2013-2017 American Community Survey 5-year Estimates



 9
 DEMOGRAPHICS
 CITY OF PORTLAND - HOUSING REPORT 2017 - WWW.PORTLANDMAINE.GOV/HOUSING
Household Age Distribution
 The median age in Portland in 2018 was 36 which is less than the U.S. median of 37.8

 People aged 25 to 34 year olds make up the largest percentage of Portland residents

 People aged 25 to 34 years old (this age group includes the millennial population (aged 23 to 38)
 grew by slightly more than 3% from 2010

 People aged 65 to 74 years old (this age group includes the older baby boomer population
 (currently aged 63 to 73) grew by about 2% from 2010

Maine continues to hold the distinction of being the nation’s oldest state population. While the median age in
the United State in 2018 was 37.8 and 44.3 statewide, Portland’s median age is 36. People aged 25 to 34 year
olds make up the largest percentage of residents in Portland. This age group has grown from 17.7% of the
population in 2010 to 20.8% of the population in 2017. The percent of residents aged 55 to 64 year olds has also
grown from 11.5% to 12.2% of the population in 2017. This is in contrast to residents aged 35 to 44 and 45 to 54
who have decreased by 2.1% and 1.4% of the population respectively. This downward trend reverses itself with
those aged 55 to 74 years and over. This population grew by 2.8% from 2010 to 2017. People who are 23 to 38
years old in 2019 are also known as Millennials while Generation X is comprised of people aged 39 to 54. Baby
Boomers are currently 55 to 72 years old.




Source: U.S.Census Bureau 2006-2010 and 2013-2017 American Community Survey 5-year Estimates
 10
 DEMOGRAPHICS
 CITY OF PORTLAND - HOUSING REPORT 2017 - WWW.PORTLANDMAINE.GOV/HOUSING


Employment, Wages and Income
 The three largest job sectors within the Portland- South Portland labor market are some of the
 lowest paying jobs.

 Portland’s estimated median income ranks towards the bottom (38 out of 43) within the Portland-
 South Metropolitan Area as reported by MaineHousing.

 Portland’s median household income in 2018 was $51,799 as reported by MaineHousing.

 Employees in many of the largest local job sectors cannot afford to rent or purchase a home in
 Portland.


The term "median income" is used to describe the amount that divides income distribution into two equal
groups, half having income above that amount, and half having income below that amount. The United States
Department of Housing and Urban Development (HUD) provides housing data for the larger Portland-South
Portland, Maine Metropolitan Statistical Area (MSA) comprised of 68 towns and cities within Cumberland,
Sagadahoc, and York Counties. HUD also reports housing and income data for the smaller Portland, Maine HUD
Metropolitan Fair Market Area (MFA)comprised of 19 towns and cities within Cumberland County and four
towns in York County. It is common for this amount to be reported interchangeably as the “median income”,
the “Portland median income”, the “Portland, ME HUD Metro FMR Area”, the “HMFA” or the “MFA”. If the area
median income is qualified in some way- generally as a percentage of AMI (e.g. 100% AMI), then this is reference
to HUD’s income limits. The 2019 100% AMI for Portland MFA for a household of four is $93,000. Maine State
Housing Authority (MaineHousing) also provides housing facts and an affordability index on 43 towns and cities
in the Portland-South Portland Metropolitan Area Housing Market. The source of data for the reported median
income is not HUD but rather Claritas, LLC. The 2018 Portland median income per MaineHousing was $51,799.

Within the Portland- South Portland labor market, the three largest job sectors are Office and Administrative
Support (15% of all jobs); Sales (10%); and Food Preparation and Services (9%). Hourly wages in these
occupational groups are some of the lowest paying jobs in major job sector categories. As will be discussed in
further detail later in this report, the income necessary to purchase the median priced home in Portland is
$102,173. Approximately 79 percent of Portland residents cannot afford to purchase the median priced home.
The median rent for a two-bedroom unit was $1,380 in 2018 according to the Portland Rental Market Survey,
which may or may not include heat and other utilities. The income necessary to afford the median rent for a
two- bedroom unit is $55,000, while the income necessary to afford the median one-bedroom rent of $1,050 is
$42,000. Employees in many of the largest local job sectors cannot afford to rent or purchase a home in
Portland.


 11
 DEMOGRAPHICS
 US. Department of Labor Bureau of Labor Statistics, May 2018 Portland-South Portland, ME Wage Estimates
 CITY OF PORTLAND - HOUSING REPORT 2017 - WWW.PORTLANDMAINE.GOV/HOUSING




 Employment, Wages and Income
Portland’s estimated median income in 2018 of $51,799 (as reported by MaineHousing), places the city towards
the bottom of forty-three communities within the Portland – South Portland Metropolitan Area, as defined
by MaineHousing. Based on the data from this report, Portland’s median income is ranked 38 out of 43 cities and
towns with 43 being the lowest median income. South Portland, Biddeford, and Westbrook had estimated median
incomes in 2018 of $65,195, $56,079, and $51,076 respectively. As noted in the 2030 Comprehensive Plan,
“Portland’s lower household income reflects its status as an urban employment and housing center, home to a
range of populations groups from the highly affluent to those just starting out in the workforce.”




 12
 DEMOGRAPHICS
 CITY OF PORTLAND - HOUSING REPORT 2017 - WWW.PORTLANDMAINE.GOV/HOUSING
 Income by Housing Type
 Median homeowner income in 2017 was $83,380

 Median renter income in 2017 was $33,654
Portland’s American Community Survey median household income increased by $6,277 between 2011 and 2017.
The median income levels for renters and homeowners in Portland has grown since 2011. The median renter
income is $33,654 per year. Median homeowner incomes were $83,380 in 2017, exceeding the 2011 median by
approximately $8,200. While median renter incomes increased slightly, they have consistently lagged behind
homeowner incomes. Renters with special needs and seniors are more likely than other renters to have extremely
low incomes.




Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates




 13
 DEMOGRAPHICS
 CITY OF PORTLAND - HOUSING REPORT 2017 - WWW.PORTLANDMAINE.GOV/HOUSING


 Poverty
 18% or 12,000 Portland residents live in poverty

 Individuals are considered living in poverty if the resources they share with others in the household are not
 enough to meet basic needs. An estimated 12,000 Portland residents (or 18%) live in poverty. Roughly, 22% are
 children and 12% are aged 65 or older.



 2019 POVERTY GUIDELINES FOR THE 48 CONTIGUOUS STATES AND THE DISTRICT OF COLUMBIA




 Source: U.S Department of Health & Human Services, 2019




Source: 2013-2017 American Community Survey 5-year Estimates




 14
 HOUSING AFFORDABILITY
Affordability Index & Affordability Gap
 Portland has an affordability gap of $155,796.

 Of 43 cities and towns in the MaineHousing Portland- South Portland Metropolitan Area
 Housing Market, Portland ranks 2nd in unaffordability.

MaineHousing provides an annual Homeownership Affordability Index that provides median income levels by
cities and towns, and the income needed to afford the median home price. The Index measures the degree to
which a typical homebuyer can afford the mortgage payments on the median-priced home. An index
measurement of 1 indicates the median income of the household is just high enough to qualify for the median-
priced ownership unit. An index measurement of less than 1 means the area is generally unaffordable- i.e., a
household earning the area median income could not cover the payment on a median price home (30 year
mortgage, taxes, and insurance) using no more than 28% of gross income.

In 2018, to purchase the median priced home in Portland of $316,000, a household would need an income of
$102,173, which is almost double the actual median income in Portland of $51,799. Based on the actual median
income, Portland residents can only afford a home price of $160,204. Portland has a housing affordability gap of
$155,796 ($316,000 - $160,204). Of the forty-three cities and towns that are included in the Portland-South
Portland Metropolitan Area Housing Market, only Kennebunkport is less affordable when residents are looking
for homes to purchase within their community. With an index of .51, only slightly more than half of Portland
residents can afford to qualify for a mortgage to purchase the median priced home.




 Source: MaineHousing 2018 Portland-South Portland MA Housing Market/Housing Facts & Affordability Index




 15
 HOUSING AFFORDABILITY
Interpreting Income Levels
 The median income for a family of four in the Portland HUD Metro FMR Area is $93,000.

The U.S. Department of Housing and Urban Development (HUD) computes income limits for Portland based on
local Area Median Income (AMI). At least 11 HUD programs and 14 other Federal programs use some variation of
HUD’s income limits. For a household to income qualify for workforce housing for sale under the City’s
Inclusionary Zoning Ordinance, the household may earn no more than 120% AMI, while workforce housing for
rent is set at 100% or less AMI.


2019 INCOME LIMITS – PORTLAND HUD METRO FMR AREA




Source: U.S. Department of Housing and Urban Development, 2019 Fair Market Area




Household Income Distribution
Of the estimated 13,269 owner-occupied housing units and 16,898 renter-occupied housing units in Portland,
51.4% of renter households earn less than $35,000 per year compared to 15.7% of owner households. Conversely,
39.2% of owner households earn $100,000 or more compared to 8.7% of renter households.




  Source: U.S. Census 2013-2017 American Community Survey, 5-year Estimates

 16
 HOUSING AFFORDABILITY
Wages and the Cost of Rental Housing
 Portland’s minimum wage as of July 1, 2019 is $11.11 per hour.

 The rent affordable at the State minimum wage is $572.

 The hourly wage a household must earn to afford a two-bedroom rental unit, without paying more
 than 30% of their income towards housing, is $26.67 or $55,474 per year.

 Maine ranks 7th in the nation with largest shortfall between average rent wage and two bedroom
 housing wage.
In the National Low Income Housing Coalition’s 2019 annual report, Out of Reach, Maine ranked 7th overall in
states with the largest shortfall between average renter wage and two bedroom housing wage. Last year Maine
ranked 9th overall meaning the shortfall in wages to housing cost in Maine is growing. However, in “no state,
metropolitan area, or county can a worker earning the federal minimum wage or prevailing state minimum
wage afford a two-bedroom rental home at fair market rent by working a standard 40-hour week.”

Effective January 1, 2019, the State of Maine minimum wage was $11.00 per hour. On July 1, 2019, Portland’s
minimum wage increased to $11.11 per hour. Per the NLIHC, the hourly wage that a household must earn in
order to afford the Fair Market Rent in Portland for a two-bedroom rental apartment, without paying more
than 30% of their income towards housing costs, is $26.67 or $55,480 per year.

The rent affordable at the State minimum wage is $572/month. The NLIHC estimates the renter median
household income in Portland is $954/month, and estimates the rent affordable at 30% of the area median
income is $698/month leaving $256 per month for food, clothing, transportation, and medical care.




 Source: National Low Income Housing Coalition, 2019 (based on Maine’s minimum wage of $11.00 per hour)
 17
 HOUSING AFFORDABILITY

 Household Income Distribution
 35% of Portland renter households are considered extremely low-income during 2016.

 56% of Portland residents were considered low-income households during 2016.

 73% of Rental households were considered low-income households during 2016.

 9% of Rental households fall within the low-income to workforce housing range during 2016.

 In August of this year, HUD released its Consolidated Planning/Comprehensive Housing Affordability Strategy
 data for 2012-2016. This data, known as the “CHAS” data, demonstrates the extent of housing problems and
 housing needs, particularly for low -income households. Per CHAS, Portland had an estimated extremely low-
 income population (<= 30% AMI) of 7,055 or 23% of its residents. The next largest household group at 20% of
 the population is households earning between 50% to 80% Area Median Income (AMI), also known as low-
 income households.




Source: HUD Comprehensive Housing Affordability Strategy (CHAS) data for 2012-2016




 18
 HOUSING AFFORDABILITY

 Housing-Cost Burdened
 47% of renter-occupied households are housing-cost burdened.

 Almost 8,000 rental and 4,000 homeowner households are cost-burdened.

 Housing affordability is calculated based on median household income relative to the income needed to purchase
 a median-priced house. As seen above, Portland is unaffordable to the median income household. Another means
 of measuring affordability, as defined by the Federal government, concludes housing costs should be at or below
 30% of a household’s income to be affordable. Housing is unaffordable to moderate-income homebuyers/renters
 and existing moderate-income homeowners/renters if they have to spend more than 30% of their gross
 monthly income on housing costs. By definition, they are housing-cost burdened. The 2013-2017 American
 Community Survey asked participating residents to indicate if their monthly housing costs as a percentage of
 household income is; less than 20%; 20 to 29%; or 30% or more (i.e. unaffordable). Approximately 29% of owner-
 occupied households -across multiple income ranges-indicated they are paying more than 30% of their income
 towards housing (including mortgage payments, insurance, property taxes and condo fees). Renter households fare
 far worse with 47% reporting they are paying more than 30% of their income towards rent and utilities.




Source: 2013-2017 American Community Survey 5-year estimates
 19
 HOUSING SUPPLY

Residential Property Characters
 35.82% of all residential housing is single-family homes.

 Approximately 50% of all residential housing is in multi-family buildings.

 14.77% of all residential housing is in buildings of 21 or more units.

 Condominiums and two-family dwellings are the next largest percentage of residential housing at
 11.14% and 11.01% respectively.

 One-bedroom units are the most popularly proposed bedroom unit during 2014-2019.


 The majority of Portland residents live in duplex and apartment buildings. Almost 40% of Portland’s
 residential housing stock is comprised of three-family or more buildings. Single-family houses and
 condominiums account for about 36% and 11% respectively of the housing stock.




 Source: City of Portland Assessor’s Office FY19



 20
 HOUSING SUPPLY
Residential Property Characters
From 2014 to September of 2019, the Planning Board has approved over 2,200 units of new and renovated
rental and single-family houses. One-bedroom projects, followed by two-bedroom and efficiency units are
the most popular projects proposed for approval. Larger (4 and 5) bedroom projects are associated with
construction projects proposed by non-profit developers.




Source: Planning Department: 2014 – September 2019



Age of Housing Stock
 50% of Portland housing stock is 80 years old.

 54% of Portland’s housing stock was built pre 1950- which is the riskiest housing for lead hazards.
 Portland has approximately 33,785 housing units (rental and homeownership). Almost 50% (16,260) of those
 units were built before 1939, 70% (23,761) were built before 1970. Older homes can be more expensive to
 maintain and heat while fire and lead hazard safety are additional concerns.




 Source: 2017 U.S. Census American Community Survey 5-Year Estimates 21
 HOUSING SUPPLY
Age of Housing Stock




Source: 2017 U.S. Census American Community Survey 5-Year Estimates


Vacancy Rates
 Rental apartment vacancy rate was 4.2% in June, 2018.

 Homeownership vacancy rate was 1.2% in June, 2018.

 Healthy market rate is 7-8% for rental housing and 2% for homeownership.

The vacancy rate measures the state of the housing market. Vacant units represent the supply of homes that
exceeds demand, which is related to economic trends. A low vacancy rate can result in pressure on housing
prices. A 2% or below vacancy rate for ownership and 7 – 8 % for rental units is considered natural vacancy rates
in a healthy market. As of June 2018, the rental housing market in the Portland-South Portland Housing Market
was 5.7% while the rental apartment market was 4.2% (which is a decrease from 6.6% one year earlier). The
vacancy rate for homeownership units is at 1.2%, down from 1.4% in September of 2015.
Increased demand and limited homebuilding activities have contributed to a significant decline in available
inventory.




 Source: HUD Office of Policy Development and Research, June 1, 2018 22
 HOUSING SUPPLY

Housing Availability
 Deficit of affordable and available units, at or below 50% AMI, is 17,904 units in Maine

 Of every 100 extremely low-income renter household, only 59 occupy or have access to affordable and
 available units leaving a shortage of 41 rental homes per low-income renter household


Each year the National Low Income Housing Coalitional (NLIHC) measures the availability of rental housing
affordable to extremely low income (ELI) households and other income groups. Rental homes are both
affordable and available at a particular level of income if they are affordable to households with income below
the defined income level and are currently vacant, or are not occupied by households in a higher income range.
Nationally and locally, ELI households face the largest shortage of affordable and available rental housing. In
2018, Maine had 59 affordable and available homes for every 100 extremely low income renter households. As
household earning increased, the availability of housing units also increased. 105 and 108 affordable and
available rental homes exist for every 100 renter households earning at or below 80% of AMI and 100% of AMI
respectively.




Source: NLIHC Tabulations of 2016 ACS PUMS data


According to the NLIHC, “the lack of new affordable rental construction in the private market, and
insufficient housing assistance forces extremely low-income renters to rely on private-market housing that
filters down in relative price as it becomes older. The filtering theory suggest that new market-rate
development for higher-income households results in a chain of household moves that helps lower-income
households: higher-income households move into new, more expensive homes, leaving behind their older
and presumably less expensive housing, which is then occupied by other households who leave even older
housing behind, and so on. The filtering process, however, fails to produce a sufficient supply of
rental homes inexpensive enough for the lowest-income renters to afford.”




 23
 HOUSING SUPPLY

 Planning Board Approval Activity
 142 rental units were approved by the Planning Board during 2018.

 429 rental units were approved by the Planning Board during 2019.

 199 condominium units were approved by the Planning Board during 2018.

 16 condominium units were approved by the Planning Board during 2019.
Between 2014 and August of 2019, the Planning Board approved almost 2,300 units of residential housing
during Level III reviews (Level III site plan review is conducted for new building construction or additions of
10,000 square feet or more, subdivisions, multiple family development, and change of use over 20,000 square
feet). Approval types and quantity have fluctuated year to year based on the type of projects requesting
approval. During the last five years, rental unit approvals (1,326 units) have outpaced all other approval types
while two single-family subdivision approvals during 2017 (Knights Farm and Stroudwater) account for 76%
of all single-family units approved through subdivision review. Condominium projects brought forward for
review have steadily increased, but 2019 may see a sharp downturn as eight rental projects and one lodging
house have sought and received Planning Board approval compared to one condominium project.




Source: Portland Planning & Urban Development 8/19/19




 24
 HOUSING SUPPLY

Housing Supply: Certificate of Occupancy
 During 2017, 419 units of residential housing were approved, but only 67 units have received a
 certificate of occupancy.

 Of the 22 residential development projects approved by the Planning Board during 2018, only four
 projects are completed.



A Certificate of Occupancy permit is issued after a building is deemed complete – which can be years after
Planning Board approval. For example, 62 India Street (29 condo units) was approved in May 2016 but was not
ready for occupancy until July of 2018- 26 months later. 25 High (63 condo units) was approved and
completed over 29 months. Hobson’s Landing (383 Commercial Street; 85 condo units) received Planning
Board approval during June of 2018 and anticipates occupancy during the fall of 2020. Other approved
projects have not advanced beyond the planning stage, such as; 75 Chestnut Street (53 rental units approved
in 2016); 218-220 Washington Street (45 condominiums approved in 2017); and 155 Sheridan (19
condominiums approved in 2017). As noted, large development projects require years to complete, and based
on past history, Planning Board approval does not always equate to the eventual creation of much needed
and anticipated residential housing.




Source: Planning Board approvals, 2014 to August 2019



 25
 HOUSING SUPPLY

Place of Development




  Code:
 Orange: Approved by Planning Board
 Green: Under Construction
 Blue: Completed

 26
 HOUSING SUPPLY

Short Term Rentals
 Cap of 400 non-owner occupied STR was attained on May 15 of this year.

 STR remove much needed housing from the supply of long-term housing.
As of May 15 of this year, 400 non-owner occupied residential units were registered as Short Term Rentals (STR).
The rise of STR removes apartments and homes from the market, limiting the supply of long term housing for
local residents, and drives up prices of the available housing stock. Traditional buyers may find themselves in
competition with individuals or companies who assume revenue benefits with STR over long-term rentals. Most
of the units offered as STR are on the Peninsula, which may have a disproportionate impact on those
neighborhoods. Considering the Peninsula’s extremely low vacancy rate, any significant reduction in available
housing stock is a concern.




Source: Permitting and Inspections Department 8/29/19



  Home Sales
 Home sales declined in 2017 and 2018, but sale prices increased.

 Low inventory of homes for sales impacted both sale numbers and prices.

 Portland is the largest market in Maine for both single-family and condominium units. During 2017 and 2018,
 Portland experienced a decline in home sales; 2017 was the first decline since 2012, however, sale
 prices remain robust. According to the June 2018 HUD Comprehensive Housing Market Analysis “part of the
 increase in new home sales and prices since 2011 is attributed to increased development of relatively
 expensive condominiums because older households downsized from larger, single-family homes”. Per a
 local real estate agency, the median home sale price in 2018 of $316,250 was 10.4% greater than in 2017 and
 the median condominium sale price of $330,000 in 2018 increased 11% from the previous year’s median price
 of $297,500. During the first six months of 2019, the number of single-family sales transactions are
 approximately 2% below the comparable time-period for 2018 due mostly to low inventory levels.




Source: Maine Home Connection from Maine Real Estate Information System, 2019



 27
 HOUSING SUPPLY
  Development Costs
 Cost of materials and labor shortage is the largest contributor to construction costs.
From the 2017 Maine State Housing Authority report, Development Cost Trends in Affordable Housing, “the
largest contributor to construction cost was primarily comprised of material and labor costs. Subsidized
development costs are similar to market-rate units and projects in metro areas generally cost less than projects
in rural area likely due to economies of scale from increased density. Development costs have generally risen as a
result of increased materials and land prices, and continued shortage of labor. Fast-forward to June of this year,
the National Association of Home Builders reported tariffs on $10 billion worth of building materials, along with
the shortage of construction workers, and concerns over housing finance continue to impact housing
affordability.” Also, increased prices and construction delays notably impede the creation of subsidized rental
housing as rent limits are determined and set for the year by HUD which does not allow developers to increase
rents to cover higher costs.

  Labor Shortage
 Unemployment rate of 2.6% in June is below the healthy rate of 4.5 to 5%.

 Shortage of skilled laborers leads to higher labor cost and increases development costs.
The cost/availability of labor was builders’ top concern in 2017 cited by 82% in a December National
Association of Home Builders Survey. The unemployment rate of 2.6% in the Portland-South Portland
Metropolitan area is below the statewide average of 3.2% as of June 2019. The Federal Reserve estimates a
healthy economy will experience 4.5 to 5 percent unemployment. Associated General Contractors, a nation
trade group, notes employers are paying more for overtime, recruitment and training and new technology to
compensate for a lack of skilled workers. The shortage of skilled laborers leads to higher labor costs, which
increases total development costs.




 28
 HOUSING DEMAND
  Portland is a service center providing jobs, health services, and educational opportunities. Demand for
  housing by employees and students is a natural consequence growing out of this role. Two newly
  headquartered business, WEX and Covetrus, alone are expected to bring 1,500 to 2,000 new jobs to
  Portland. Portland is also nationally recognized and promoted as the "Most Livable City" (by Forbes), the
  "Best Town in the East" (by Outside Magazine), the "Best Healthy Place to Retire" (by AARP), the "Best City
  for Mid-Level Professionals" (by Kiplinger’s), the "Best Cities for Young Professionals" (by Forbes), and a
  food destination (by the New York Times). Positive publicity, changes in the city demographics and the
  limited amount of housing created over the past decade all contribute towards the shortage and demand
  for housing.

 Housing Demand
 Demand for housing within the Portland-South Portland Housing Market will require an additional
 7,200 housing units by 2021.

 Buyers 36 years and younger are the largest share of homebuyers (34%).

 47% of Older Boomers, buy due to retirement.

To achieve a balanced market of demand and supply
within the Portland- South Portland Housing Market Area,
HUD estimates a demand for 5,525 units of ownership
housing and 1,675 rental units to be created by 2021.
 Positive publicity,
Buyers 37 years and younger (Millennials/Gen Z) are the
 changes in the city
largest share of homebuyers at 34 percent of the market,
and the largest share of first-time homebuyers (86% of Gen demographics, and the
Z and 52% of Millennials) according to a 2019 National limited amount of
Association of Realtors report. Gen X consists of 24% of housing created over
recent homebuyers. This group is the most likely to be
married and have children under the age of 18 in their
 the past decade all
home. They are at the peak of their earning years and tend contribute towards the
to buy the largest homes located within top performing shortage and demand
school districts and near their place of work. Buyers 55 to for housing.
64 (Younger Baby Boomers) purchase multi-generational
homes as their households consist of children both over
and under age 18, and aging parents that need caretakers.
Older Baby Boomers, aged 65 to 73, often purchase due to
retirement, the desire to be closer to friends and family,
and to downsize. Buyers 74 to 93 (the Silent Generation)
purchase homes to also be closer to friends and family and
for the desire to own a smaller home. Twenty-nine percent
purchased senior-related housing and they tend to
purchase the newest homes.
 29
 HOUSING DEMAND
 Condominiums
 169 Newbury Street (Luminato), 26 units ($345,000 one-bdrm., $500,000 two-bdrm., $900,000 three-
 bdrm). Sold-out six months before the development was completed.

 25 High Street, 63 units while under construction were converted to condos. This building is sold out.

 20 Thames, 28 units priced between $500,00 to more than $2 million, five units unsold.

 383 Commercial (Hobson’s Landing), 85 units ($395,000 one-bdrm., $525,000 two-bdrm., $850,000
 three-bdrm). Expected completion date is fall 2020; 50% under contract.
  During 2018, condominium units in Portland sold faster and at higher prices than in previous
  years. According to a report by Elise Loschiavo of the Vitalius Real Estate Group, the average condo price rose
  around 6% after several years on the rise (including a 20% increase in 2017). The average sale price for a
  condo on the Portland peninsula was $434,410 in 2018, while the average price off-peninsula was $247,933.
  The median days for a condo listing dropped from 20 days in 2017 to 13 days in 2018. Demand by suburban
  retirees desiring to downsize in an urban setting, millennials who prefer walkable and vibrant locations, and
  out-of-staters is fueling demand.



 Multi-Family Rentals
 During the next three years, demand is expected for 1,675 new market-rate units in the Portland-
 South Portland housing market area (HUD 6/19).

 Construction of new multi-family rental units in Portland include; 443 Congress Street, 28 multi-
 family rental units; Hiawatha, 139 unit multi-family rental units; and 58 Boyd Street, 55 multi-family
 rental units.
  Per HUD, the demand for rental housing has “exceeded supply as relatively high home sales prices have
  prevented many renter households from pursuing homeownership”. Fewer young adults are buying homes,
  and the growing retiree population has also affected the demand for rental housing for both market and
  subsidized units. HUD defines the current apartment market conditions as slightly tight.

 2018 Estimated Demand for New Market-Rate Rental Housing in the Portland- South Portland HMA




Source: HUD Portland-South Portland, Maine Comprehensive Housing Market Analysis June 1, 2018

 30
 HOUSING DEMAND
  Single-Family Houses
 1700 Westbrook Street (Stroudwater Preserve): 123 Single Family & Townhouses (under
 construction).

“Sales of single-family existing homes in Maine remain stable and positive” according to the August report from
the Maine Association of Realtors, and demand should remain stable based on an increase in inventory and lower
mortgage interest rates. Demand remains stable as buyers wait for affordable housing to come onto the market.
A Harvard University Housing Study in 2018 reported that homeownership rates among young adults today are
lower than in the 80s as soaring housing costs, higher rates of college and graduate school attendance and lower
rates of marriage and childbearing are to blame, however, the sheer number of young adults will eventually lift
housing demand.


 Senior Housing
 The Motherhouse at Baxter Woods, 88 55+ rental units at affordable and market rate.

 Stevens Square at Baxter Woods, 21 55+ market rate condominium units; broke-ground 8-26-
 19, anticipated occupancy is early 2021.

 173 Kennebec Street, 40 55+ units of low-income rental housing (proposed).

 83 Middle Street, 44 55+ units of low-income rental housing (proposed).

 200 Valley Street, 60 55+ units of low-income rental housing (proposed).
A growing retiree population has increased the demand for housing. An estimated 13.7% of Portland households
are headed by a person age 65 or older during 2017 (per the US Census Bureau) compared to 12.8% during 2010.
Seniors age 75 or older need accessible buildings and apartments as well as supportive care due to the
prevalence of increasing disability with age. Seniors hoping to age in place are downsizing into homes that
require less upkeep, and offer a walkable community. Some seniors are seeking amenities such as fitness studios,
recreation rooms, high-end fixtures and finish options. Stevens Square at Baxter Woods, a 21 unit condominium
development for seniors broke ground on August 26. Prices range from $372,165 to $612,057- only eight units
remain unsold. Demand is also strong for affordable housing. According to Avesta Housing, “income qualified
demand in Portland currently exceeds 500 households (age 55+) and is projected to remain above 500 through
2023. In addition, across Cumberland County, there are currently 5,000 income qualified households.”




 Source: US Census 2006-2010 American Community Survey 5-Year Estimates
 Source: US Census 2013-2017 American Community Survey 5-Year Estimates
 31
 HOUSING DEMAND
 Low-Income Housing/Homelessness
 Very high demand for Very-low and Extremely-Low Income housing.

 Over 3,600 Portland residents or employee are applicants on the Maine Centralized Waitlist.

An example of demand far exceeding supply is the 2017 report by Avesta that 1,600 households applied for an
affordable apartment in Portland; however, they were only able to place 119 of those households. The Maine
Centralized Waitlist contains 14,000 to 16,000 households waiting for affordable housing within the state. The
Waitlist of applicants who live or work in Portland is 3,600+. Portland Housing Authority is providing housing
through 1,754 Section 8 vouchers; 88 Veteran Vouchers; 28 HUD Mainstream Vouchers; 100 Loring House
Vouchers; and 25 Foster Youth to Independence Initiatives. Of the 3,600+ waitlist applicants, 1,252 qualify for
one of the previously mentioned voucher programs. Portland Housing Authority’s “internal data, market
research and professional management experience point to high demand for affordable rental homes in
Portland. Of over 1,000 affordable rental apartments, the occupancy rates (> 98%) and fast lease-up rates are
the norm. In particular, there is very high housing demand for Very-Low Income and Extremely-Low Income
housing”. The average total number of individuals residing in Portland homeless shelters had a slight decrease
from August of 2018 to August of 2019. The average number of adolescents dropped from 19 individual to 16;
average families decreased from 206 individuals to 189 individuals (or 64 average families to 59 average
families); and average adults declined from 507 individuals to 457 individuals (these numbers do not include
the Expo). The Oxford Street Shelter provided housing for forty individuals from other cities and towns in Maine
during the month of August, as well as thirty out-of-state and four out-of-country shelter seekers.




 Source: City of Portland Health & Human Services Department, Social Services Division, 9/19

 32
 HOUSING DEMAND
 Student Housing
 Approximately 2,500 USM students rent off campus in Portland.

 About 76% of off campus students rent apartments in Portland.

According to HUD’s 2018 Comprehensive Housing Market Analysis, “the rental market in the Housing Market
Area is notably impacted by enrollment at the University of Southern Maine and the University of New
England. Of the 16,100 students enrolled at the two universities, approximately 2,700 are housed in on-
campus dormitories. The remaining 13,400 students who live off campus occupy an estimated 4,375 rental
units. Students account for approximately 6 percent of the rental market.” During the fall of 2018, student
housing at the University of Southern Maine, on the Gorham campus, was over-occupied by 112% (or 140
students). In USM’s 2019 report, Portland Campus Student Housing Project Definition, total residence hall
capacity is 1,180 students. An additional 2,575 students live off-campus in Portland. Of those students, 6%
rented in Parkside, 25% rented in the East End, 18% rented in the West End/Downtown, 40% rented North
of 295, and approximately 12% rented in other neighborhoods. Approximately 76% of students renting
off-campus live in apartments, 5% live in houses, and 20% rent a bedroom. The University of Southern Maine
is aware of the demand for student housing and is working towards a solution.




 Source: Brailsford & Dunlavey/ USM: Portland Campus Student Housing Project Definition, June 2019
 33
 HOUSING DEMAND
  Desirability
 Portland is the sixth most viewed city by out of state housing shoppers, out of 100
 large metro areas across the US.

 About 38% of all views are from residents of Boston.

According to Realtor.com, Portland is number six for the share of views from out-of-state shoppers. Every
quarter, Realtor.com conducts a cross market demand of which housing market received the most
non-local views. The 100 largest metro areas across the county are ranked based on the number of out-of-state
views. The metro centers on the top ten list are described as desirable destinations for retirees, vacation
destinations, second-home markets, and booming employment centers. The Portland-South Portland area
market is viewed most often by residents of Boston (37.1% of the time), New York City (12.8%), and Worcester,
MA (3.3%).




 Source: Realtor.com Q2 2019 Cross Market Demand Report




 34
 HOUSING RESOURCES
According to Enterprise Community Partners, “new rental construction over the past decade has been largely
geared toward the high end of the rental market, due to increasingly high development costs.” Public subsidies
are needed to subsidize the production and operation of affordable homes for the reason that the private market
provides too few homes affordable to the lowest-income households.




A. Federal Resources
The U.S. Department of Housing and Urban Development’s
(HUD) mission is to “create strong, sustainable, inclusive
communities and quality affordable housing for all.”

To fund this mission, HUD allocates money directly to states and Public subsidies are
local governments for community planning and development needed to subsidize the
projects through:
 production and operation
 HOME Investment Partnerships Program (HOME) of affordable homes...
 Community Development Block Grants (CDBG)

 Emergency Solutions Grants Program (ESG)

 Neighborhood Stabilization Program – no longer available

 Lead Hazard Control Grant

 Brownfield Economic Development Initiative (U.S. EPA funded)




HOME Investment Partnerships Program
 FY 2019 HOME Award totaled $1,020,693, slightly less than FY 2018 total of $1,151,710.

 $1,573,439 was committed towards the renovation and creation of 366 units of low income
 housing during 2018 and 2019.

 Recent HOME funded projects; 37 Front Street (111 units); 178 Kennebec Street (51 units); Deering
 Place (75 units); 66 State Street (30 units); 83 Middle Street (44 units).



 35
 HOUSING RESOURCES


 HOME Investment Partnerships Program
 HOME funds are awarded annually as formula grants to participating jurisdictions. HOME funds are used to
 assist with building, buying, and/or rehabilitating affordable housing for rent or homeownership as well as
 providing direct short-term rental assistance and security deposits to low-income families through the Tenant
 Based Rental Assistance Voucher Program (TBRA). During FY 18, Portland provided $118,529 in TBRA to 87
 households.

 During 2018 and 2019, $1,080,174 and $493,265 were committed respectively towards the creation of
 affordable housing. HOME has been the largest funding source for the City helping to develop approximately
 1,143 units of low-income housing through the allocation of approximately $9.3 million in funds since 2000.




Source: HUD Exchange, HUD Awards and Allocations (2009-2019)




 36
 HOUSING RESOURCES

Community Development Block Grant (CDBG)
 FY 2019 CDBG award totaled $1,893,566, slightly less than FY 2018 total of $1,895,922.

 $260,000 of CDBG funds was committed towards 166 units of low-income housing during
 2018 and 2019.

 58 Boyd Street (55 units); and 37 Front Street (111 units).


The Community Development Block Grant (CDBG) program distributes annual grants to provide communities
with resources to develop and expand housing and economic opportunities for low-income households at or
below 80% AMI. Approximately $3.7 million has been award during 2018 and 2019 of which $260,000 was
committed towards 166 units of low-income housing.




 Source: HUD Exchange, HUD Awards and Allocations (2009-2019)




 37
 HOUSING RESOURCES
 Emergency Solutions Grants Program (ESG)
 Portland’s ESG funding award in 2018 was $157,131, and $160,873 in 2019.

 Portland has seven homeless shelters.

HUD provides funding for the Emergency Solutions Grants Programs (ESG) to operate, provide essential services,
and improve the number and quality of emergency shelters for homeless individuals and families as well as to
prevent families/individuals from becoming homeless. Portland’s Health and Human Service Department
operates both the Oxford Street Shelter, which is the largest emergency shelter in Maine, the Family Shelter,
which is the largest shelter for families in Maine, and the Community Overflow Shelter(s) with ESG funding. The
City’s shelter program provides efficient and effective support services to promote rapid re-stabilization and the
achievement of permanent housing. The Family Shelter also serves as a Welcome House for new Mainer’s or
refugees/immigrants.

 Neighborhood Stabilization Program (NSP)
 Approximately $1.7 million in NSP funds helped develop the Adam Schools site into 16
 moderate-income homeownership units.

 The Neighborhood Stabilization Program provided emergency assistance to communities to purchase and
 redevelop foreclosed and abandoned properties to house workforce and low-income households. This
 program is no longer available.


  Lead Safe Housing
 Since 1998, the Lead Safe Program has funded lead abatement work in 430 housing
 units, protecting local citizens and children from lead hazards in their homes.
 The Lead Safe Program is funded by a competitive grant program available through HUD’s Office of
 Lead Hazard Control and Healthy Homes. The program is designed to raise awareness about the risks
 of childhood lead poisoning and to cover the costs of lead abatement of housing units in Portland that
 contain identified lead hazards. Portland received its sixth Lead Hazard Control Grant in 2016
 that was for a three-year period. The 2016 grant included a Healthy Homes allocation, which was used
 in tandem with the Cumberland County and City HOME Rehab program in order to improve the overall
 health and safety of Cumberland County’s low to moderate income housing stock. HUD recently
 approved a total of $2,541,696 for the City of Portland for another round of three-year funding to
 continue assisting in the critical financing of the high cost of lead abatement work.

 In the summer of 2019, LD 1116 was signed into law mandating all children in Maine, regardless of
 income, be tested for lead at the ages of 1- and 2- years old. This new law, along with the lowering of
 Maine’s childhood lead poisoning standard in 2016, is expected to create a spike in the number of
 children identified with lead poisoning. The Lead Safe Housing Program works closely with the Maine
 CDC to address high priority cases with program funding when applicable.
 38
 HOUSING RESOURCES

Brownfield Economic Development Initiative (BEDI)
Through grants received from the U.S. Environmental Protecting Agency, Portland is able to cover the cost of site
assessments and provide financial assistance in the form of low interest loans and grants to assist Portland and
other cities with the redevelopment of abandoned industrial lots that are considered environmentally
contaminated. Cleaning up and reinvesting in brownfields properties yield many benefits to a community. These
range from increasing the local tax base, property redevelopment, and job growth to taking development
pressure off of open land, and protecting the environment and people’s health.


A. Local Resources
Portland has valuable local funding tools to assist the City in financing affordable housing. The Housing Trust
Funds (HTF) and Affordable Housing Tax Incremental Financing Districts (AHTIF) support the production of
housing affordable to low and moderate-income households.


 Housing Trust Fund (HTF)
 137 units of affordable and workforce housing funded during 2018 and 2019.

 $3,340,996.80 has been deposited into the fund from which $663,835 has been spent and
 $1,786,734 is committed towards future housing projects.

 The balance of the Housing Trust Fund is $890,427.80 (10-9-19).
  The Housing Trust Fund is a more flexible source of gap financing for projects that are not eligible for
  HUD funding. Projects creating housing for the missing-middle (less than 120% AMI) may be funded
  through the Housing Trust Fund. During 2018, two projects creating or renovating 151 units of housing,
  and during 2019, two projects creating or renovating 56 units of housing were approved at a cost of
  $1,225,000 and $561,734 respectively.

  Revenue is generated mainly from fees associated with the City’s Housing Preservation and
  Replacement Ordinance, Inclusionary Zoning fee-in-lieu, and Inclusionary Zoning for Hotel Projects
  fee-in-lieu. The Housing Trust Fund has a balance of $890,427.80. To date, $3,340,996.80 has been
  deposited into the fund from which $663,835 has been spent and $1,786,734 is committed towards
  future housing projects such as; 37 Front Street; 977 Brighton Avenue; 83 Middle Street; and 47 Boyd
  Street. The new Inclusionary Zoning for Hotels fee-in-lieu is expected to add $593,736 to the HTF (fees
  are deposited upon completion of the project). Expected fee-in-lieu deposits from Inclusionary Zoning
  total $1,393,325 (fees are also deposited upon completion of the project). Since 2011, the Housing Trust
  Fund assisted in creating 208 low income, 12 workforce homeownership units and nine market rate
  units within six development projects.

 39
 HOUSING RESOURCES
 Housing Development Fund (HDF)
 Housing Development Funds have subsidized the creation of 218 housing units utilizing more
 than $1.5 million since 2000.
The Housing Development Fund is comprised of loan repayments from CDBG’s Multi-family rehabilitation
program, and proceeds from the sale of HUD Urban Development Action Grants UDAG) properties in Portland.
The money that comes into this fund from these programs is repurposed, at this time towards subsidized housing
development in Portland. HDF resources have subsidized the creation of 218 housing units utilizing $1,555,139
since 2000.




 Source: Housing and Community Development 40
 HOUSING RESOURCES

Selling/Leasing City-Owned and Tax Acquired Property
 Sales proceeds are targeted for the Housing Trust Fund.

 60 Parris Terrace: 23 condominium units (2 deed restricted workforce units).

 178 Kennebec Street: 51 rental units for households age 55+.

 83 Middle Street: 44 rental units for households age 55+.

 The City passed a provision governing tax acquired property wherein any profits from subsequent sales are
 allocated to the City’s Housing Trust Fund. The City may also provide city-owned land for housing development
 and may offer the land below market price to encourage housing development or support greater affordability.
 Selling city-owned land provides the City with unique control over the timing, location, and affordability of
 housing development in Portland. It also has the added benefit of turning land with no tax liability into an
 income generating property for the City’s tax rolls. The City is currently reviewing excess land with the intent of
 creating future housing. Previous transfers, such as 60 Parris Street from the City to a private developer, created
 23 condominium units- two of which are deed restricted as Inclusionary Zoning units, and twenty-one that were
 sold at or below 120% AMI (i.e. workforce affordable). Similarly, the transfer of 178 Kennebec Street will result in
 51 units of age 55+ housing; forty units will be leased at or below 60% AMI, and 11 units will be market rate. More
 recently, the City Council approved the option to lease land at 83 Middle Street to Community Housing of Maine
 for the proposed creation of 44 units of affordable housing for households aged 55+.




 41
 HOUSING TOOLBOX
Zoning is a local tool used to regulate the use of land in order to avoid nuisance conditions and to protect the
health, safety and welfare of its citizens. Housing policy experts however cite the importance of reducing regularity
barriers that limit the construction of housing through outdated, exclusionary, and unnecessary zoning
regulations. There is a general agreement that barriers consist of regulations that were adopted to protect or
maximize the value of the investment homeowners made in their residence against unwarranted fears. Those
regulations have unnecessarily raised housing cost and negatively affected socioeconomic diversity.

  Inclusionary Zoning (Order 82-15/16, effective 11-18-15)
 40 Free Street; 5 workforce rental units approved in 2019.

 132 Marginal Way; 20 workforce rental units approved in 2019.

 Total of $826,500 collected as fee-in-lieu.

 Provides 25% density bonus in certain zones and development fee reductions.

In October 2015, the City Council approved an amendment to the City’s zoning ordinance to mandate inclusionary
zoning within all residential development projects of ten or more units. Qualifying projects are
required to make available a minimum of 10% of their units as workforce housing to eligible households earning
100 to 120% of the area median income. Projects subject to Inclusionary Zoning are eligible for a 25% increase in
total permitted units. Effective July 18, 2018 the term housing expense was amended (Order 247-18/19) to include
condominium/HOA fees, mortgage insurance, and real estate taxes, and the sunset provision was deleted.

The introduction of Inclusionary Zoning ensures critically needed workforce housing is built or through the fee-in-
lieu option, funded for development at a later date. Four units of rental and condominium housing have been
created on-site and two units of rental housing have been created off-site; eight single-family homes are planned
or under construction; and thirty-five units of rental and condominium housing have been approved but are
pending construction. $826,500 of fee-in-lieu payments have been deposited into the Housing Trust fund and
allocated towards increasing the creation and affordability of rental housing. An additional $1,393,325 will be
collected upon completion of nine approved housing projects.




 42
 HOUSING TOOLBOX

Inclusionary Zoning Development Projects: December 2015 – October 2019
with all projects receiving any tax credit or city subsidies removed.




Source: Housing and Community Development




 43
 HOUSING TOOLBOX

 Hotel Inclusionary Zoning
 (Order 134-18/19 effective 2-22-19)
 121 Middle Street, pending fee-in-lieu of $79,926

 1 Center Street, pending fee-in-lieu of $513,810
In 2019, Portland amended Chapter 14 of the Land Use Code to require new hotel projects with 10 or more hotel
rooms within any 5-year period, to provide low-income housing for rent on-site, or pay a fee-in-lieu to support
affordable housing in the City. Based on City analysis, most specifically the analysis documented in the Greater
Portland Council of Government study “Proposed Hotel Linkage Fee: Supportable Range” finds that new
hospitality development creates a need for new affordable housing. This need is the result of the fact that
hospitality developments necessarily create a number of jobs that do not pay employees at a rate sufficient to
allow those employees to afford market-rate housing in the City.

 Housing Replacement Ordinance
 (Order 280-09/10 effective 8-19-10)
 Of the $1,056,830 deposited into the Housing Trust Fund (HTF), $630,585 has been
 expended to leverage the creation of 37 units of low-income housing, eight
 workforce housing units, and 34 Housing First units.

The city's land use ordinance contains a housing replacement requirement intended to limit the loss
of housing stock but in cases where housing is lost, promote and facilitate the development of new housing
supply. The ordinance requires the payment of a fee per unit for any net loss of housing as a result of demolition
of an existing residential property or conversion of residential space to another use. The fees received by the
City are contributed to the Housing Trust Fund. The last deposit into the Housing Trust Fund
from the Housing Replacement Ordinance was for $250,000 during 2012.




 44
 HOUSING TOOLBOX

Reduced Fees for Developing Affordable
Housing (Order 98-06/07 effective 12-4-06)
 72 Bishop Street- 30 affordable units

 17 Carleton Street- 37 affordable units

 134 Washington Street- 18 affordable units

 81 East Boyd Street – 45 affordable units

 58 Boyd Street – 44 affordable units

 510 Cumberland Avenue – 45 affordable units


  Portland adopted amendments to the land use code
  to reduce the development fees associated with the
  development of eligible affordable residential real
  estate projects by 5 to 25%. The cost of work (i.e.
  Building Permit) fees are also reduced based on the
  percentage of new units that are low income or
  workforce units.




Downtown Height Overlay District Amendment
(Order 91-13/14 effective 12-17-13)
 667 Congress St (Hiawatha- Longfellow Apartments) - 139 market-rate rental units.


The Downtown Height Overlay District Map was amended to rezone parcels between Danforth and York
Street to B-3 and increase the allowed height to sixty-five feet. Two years later the City adopted a second
map amendment (Order 81 15/16 effective 11-18-15) to further expand the Downtown Height Overlay District
on additional underutilized land between Danforth, York and High Streets to increase the allowable height
from 45” to 65” for residential development.



 45
 HOUSING TOOLBOX

B-1, B-1b Amendment
(Order 118 13/14 effective 1-15-14)
 118 Congress Street- 12 units

An amendment to the B-1 and B-1b zone was adopted to encourage traditional small-scale commercial and
mixed-use forms in existing neighborhood retail nodes. Buildings in the B-1 zone along Congress Street with
commercial first floor and residential upper floors are allowed to be 50 feet in height rather than 45 feet.




Allowing Accessory Structures in R-3 and R-5 Zones
to be converted to dwelling units
(Order 202-13/14 effective 5-28-14)
 14 low-income units have been approved by the Zoning Board of Appeals in the R-5 zone.

Any detached or accessory structure in the R-3 and R-5 zones, which were in existence on January 1, 1940, may
be converted to dwelling units without meeting front, side or rear yard setbacks. Converted units within the R-5
zone must be affordable to households earning up to 80% of the area median income and are subject to income
verification. Units may not be sold as condominium units.



 R-6 Zone in the Vicinity of Boyd, Oxford, and Mayo
 Street Rezoned to R-7
 (Order 244-13/14 effective 6-18-14)
 81 East Oxford (Bayside Anchor) - 45 units (36 rental units for low-income households).

 58 Boyd Street- 55 units (44 rental units for low-income households).


 In May of 2014, the City Council passed an amendment to the zoning map in the vicinity of Boyd, Oxford, and
 Mayo Streets in East Bayside from R-6 to R-7 to allow for greater density for future housing development.




 46
 HOUSING TOOLBOX

 Multi-Family Density Standard Amendment
 (Order 263 13/14 effective 7-16-14)
 101-121 Newbury Street- 35 units

 72 Bishop Street- 30 affordable units

 3 Pleasant Avenue- 25 units

The Commercial Business Zone (B-2, B-2b, B-2c) was amended to offer the opportunity for larger scale
commercial and residential development along the city’s major arterials and shopping centers. This
amendment permitted multi-family dwellings without boundary and commercial use restrictions, increased the
permitted housing density, clarified the setback requirements, and provided for lively, urban ground floor uses.



R-6A Zone (Order 73 14/15, effective 11-19-14)
In October of 2014, the City Council passed an order creating a new R-6a zone to encourage higher density
multi-family housing on large parcels located off the peninsula. The zone was designated appropriate for areas
that are along major transportation routes, near service areas, and in redevelopment (underutilized) or infill
areas. The R-6a zone encompasses the majority of Munjoy Hill. Prior to the text amendment, the minimum lot
size of 4,500 sf rendered 71% of the existing parcels as non-conforming. After lowering the minimum lot size to
2,000 sf, 86% of the existing R-6a lots were considered conforming.


R-6A Zone (Order 74 14/15 effective 11-19-14)
 777 Stevens Avenue (the Park Danforth) - 59 units of age restricted housing.

Following the creation of the R-6a zone, the City Council amended the zoning map to include 777 Stevens and
880 Forest Avenue in the R-6a zone. This amendment allowed for the construction of a new building with fifty-
four (59) senior independent living units attached to the existing building with a one-story connector. The new
building is four stories along Arbor Street and Forest Avenue, with a fifth story corner projection.


Rezoning 89 Anderson Street
(Order 102-14/15 effective 1-14-15)
 89 Anderson Street (East Bayside Lofts)- 53 market rate apartments

The zoning map was amended to rezone 89 Anderson Street from Residential R-6 to Neighborhood Business B-
1b to support greater residential development above a ground floor commercial use to serve the local market.

 47
 HOUSING TOOLBOX

R-5A Zone Amendment
(Order 276 14/15, effective 7-15-15)
 605 Stevens Avenue (Motherhouse) – 88 units of which 66 are affordable

 802 Ocean Avenue (Portland Retirement Residence)
The R-5a zone was amended by the City Council allowing the creation of multifamily dwelling units as a permitted
use. Multifamily development of four or more dwelling units qualify for height bonuses while three-family
dwellings have dimensional requirements similar to those of lesser density.


IR-1 and IR-2 Accessory Dwelling Unit (ADU)
Amendment for Peaks Island
(Ordern 82-15/16 effective 11-18-15)
On October 19, 2015, the City Council approved amendments to the IR-1 and IR-2 zones allowing for revisions to
the language regulating accessory dwelling units on Peaks Island. The revisions called for allowing ADUs on
undersized lots within or as additions to existing dwellings provided certain conditions are met. These units
would only be allowed if they are rented year round to households earning no more than 100% of the area
median income. The intent is to provide affordable year round housing to Peaks Island residents who face
pressure from seasonal rental markets.


Reduced Parking Requirements & Fee-in-Lieu Option
(Order 240-09/10 effective 6-21-10 and Order 83-15/16
effective 11-2-15)
 Nine projects, including six devoted to the creation of low-income housing have been
 permitted under the reduced parking requirements. One project, also aimed at low-income
 housing chose to pay a fee-in-lieu.

The cost of providing parking in new residential development projects can often be substantial and encourages
inefficient land use patterns. The city has reduced some parking requirement on the peninsula to help decrease
parking-related costs and incentivize residential development. Developers in the non-residential or the IS-FBC
zones have the option of paying a fee-in-lieu to meet their project's parking requirements. Fee-in-lieu payments
go to the Sustainable Transportation Fund. For each low-income or workforce housing unit for rent or sale within
an eligible project under the Affordable Housing Ordinance, no more than one parking space is required.
Additionally, the planning board may establish a parking requirement for affordable housing units for rent or sale
within an eligible project that is less than one parking space per affordable housing unit, regardless of the size of
the structure.
 48
 HOUSING TOOLBOX
Priority Review (Order 82-15/16 effective 11-18-15)
To the extent possible, the Planning Division offers expedited reviews for projects including low-income or
workforce housing units. The Planning Board make its best effort to hear, review, conditionally approve or deny
within one workshop and one public hearing any proposed plans or applications for eligible housing projects
containing some low-income or workforce units.


India Street Form Based Code (IS FBC) (Order 83-15/16
effective 12-2-15)
 169 Newbury Street (Luminato) 26 condo (2 off-site IZ units)

 62 India Street 29 condo units $276,500 to the Housing Trust Fund (collected)

 20 Thames Street 28 condo units $280,000 to the Housing Trust Fund (collected)

 56 Hampshire Street 30 rental units (1 off-site IZ unit, and $209,398 to Housing Trust
 Fund) (under construction)

 86 Newbury Street (Shipyard) 10 rental units (1 IZ unit on site)
 The rezoning of India Street to a form-based code is intended to regulate development through emphasizing the
 relationship between buildings, streets, open space, walkability, and urban uses. By implementing this new
 zoning method, the city hopes to create a more predictable development environment for the private sector
 and the public alike. Also, one additional story of up to 12 feet in height is allowed for residential developments
 where 20% of the units are workforce units for sale or low-income housing units for rent.

Amendments to Zoning Ordinance for Greater
Density and Height (Order 31-17/18 effective 10-6-17)
In 2017, the city amended Division 30 (Affordable Housing) to offer incentives for affordable housing in the B-1, B-
1b, B-2, B-2b, B-2c, B-3, B-3b, B-5, R-7, and R-P zones to allow the maximum number of units that would
otherwise be allowed to increase, along with a height bonus and a reduction in setback for Inclusionary Zoning
projects that create a greater percentage of low-income or workforce units for sale or rent. These zones are best
aligned to access transit along and adjacent to primary transit routes.

Order 31-17/18 also provided dimensional bonuses to promote orderly development of low and moderate
income developments as Planned Residential Unit Developments (PRUDs). When any PRUD provides 50% or
more workforce or low income housing, the area per dwelling unit would be reduced by 50%; the maximum
number of units and maximum length of building do not apply but may be set through site plan review; minimum
building setbacks may be reduced; and the minimum recreation space is reduced to 200 square feet per
unit. The amendment also allows land on both sides of a street to count toward the minimum lot size
requirement for the PRUD.
 49
 HOUSING TOOLBOX

B-1 and B-1b Neighborhood Business Zone
(Order 170-17/18, effective 3-5-18)
The City Council approved amendment of the city code to allow live/work units or straight residential units to
remove the regulatory barrier on ground-floor units in off-peninsula locations. The B-1 and B-1b Neighborhood
Business zones are intended to foster mixed-use development in its traditional form, with residential uses located
over ground floor commercial spaces. However, this design standard is somewhat incompatible with fair housing
laws that require residential projects of four or more units provide ADA accessible ground-floor units where no
elevator exists, or make all units and common space accessible in a building where an elevator does exist.
Installation of an elevator for universal building access in small-scale mixed-use projects is oftentimes challenging
if not cost prohibitive, thus requiring a ground-floor residential unit.




Munjoy Hill Neighborhood Conservation Overlay
District (Order 221-17/18 effective 6-4-18)
 130 Morning Street (9 units, 1 affordable unit)

 33 Montreal Street (9 units, 1 affordable unit)

 128 North Street (6 units, 1 affordable unit) (under Planning Board review)

 The Munjoy Hill Neighborhood Conservation Overly District was added to Chapter 14 of the Land Use Ordinance
 to address the negative impacts of development pressures within Munjoy Hill and to create a positive
 framework for investment in the area. Alternative dimension and design standards and demolition review were
 created for the District. In addition, developments of three or more units that elect to maximize the height
 bonus of 45’ must include at least one workforce housing unit for rent or for sale.



 Nonconforming Use and Nonconforming
 Buildings (Order 222 17/18 effective 6-4-18)
 In 2018, the City amended section 14-381 through 14-437 to simplify and modernize the requirements for
 additions to non-conforming structures in order to better accommodate owner’s desire to put limited
 additions on these structures. The amendment addresses concerns the existing language made it difficult to
 add on to existing homes and, therefore, encourage demolition over renovation.



 50
 HOUSING TOOLBOX
Transportation Improvements
to Allow for Greater Density
 Redesign Franklin Street and the Forest Avenue corridor to allow for additional development and
 multi-modal transportation.
The Planning and Urban Development Department, in cooperation with the Department of Public Works, has
been working on improvements to the city's transportation infrastructure both on- and off peninsula in part to
better accommodate greater housing density.


Short Term Rentals (Order 179-16/17 effective 4-26-17)
 732 properties are registered as short-term rentals - 128 are on Peaks Island; 288 are non-owner
 occupied; 287 are owner-occupied, and 29 are tenant occupied.

 872 units are registered as short-term rentals- 131 are on Peaks Island; 400 are non-owner occupied;
 312 are owner-occupied; and 29 are tenant occupied.

 Total of $209,436.80 transferred into the Housing Trust Fund from funds not spent toward program
 administration.

 Portland approve an ordinance in April 2017 that requires Short Term Rental (STR) units to be registered with
 the city effective January 1, 2018 and placed a rental cap of 300 non-owner occupied units on the mainland.
 During 2019, changes in how STR units were defined and a new rental cap of 400 non-owner occupied units on
 the mainland went into effect. The purposed of the Ordinance is to protect Portland’s long-term rental units
 from leaving the local market to host short-term guests, and to ensure the safety of each unit. The City adopted
 a registration fee to pay the cost of inspections. Funds not spend towards program administration are deposited
 into the Housing Trust Fund for the creation of affordable housing.


 Portland Water District Efficiency
 and Repair Services Program
 A total of 10 projects were funded by the Portland Water District.

 The Portland Water District Efficiency and Repair Services Program provides financial assistance to low
 income residential customers of the Portland Water District (PWD) for the repairs and improvements that
 reduce water consumption through the installation of plumbing fixtures and water saving devices including
 the repair of leaking or broken water pipes, toilets, hot water tanks, faucets, showerheads, toilet dams, and
 low-flow devices. The City of Portland administers the program on behalf of the PWD. A qualified residential
 customer is one who owns and occupies a year round residence within the PWD service area and whose
 household income is at or below 80% of the area median income. The PWD has initially set aside $10,000 for
 this program but has funded a total of $15,700.

 51
 HOUSING TOOLBOX

Healthy Neighborhoods Program
(Order 112-17/18 effective 12-20-17)
The City Council approved an amendment to Chapter 14 of the City Code requiring Maine Medical Center to
initiate and adopt a memorandum of understanding between MMC and the City of Portland towards a Healthy
Neighborhoods Program within the Maine Medical Center Institutional Overlay Zone. The Program shall be
designed to fund and execute housing and community improvement programs in the surrounding St. John
Valley and other neighborhoods.



Rental Housing Advisory Committee
(Order 32-18/19 effective 9-12-18)
Portland’s Rental Housing Advisory Committee provides the Housing Committee with recommendations or
proposals for improvements, modifications, or changes regarding landlord and tenant policy issues, and
identifies educational opportunities, seminars, and materials that would be useful to landlords and
tenants. The Committee held their first meeting on September 24 to create a work plan of topics for future
discussion.



Housing Safety
 Rental Housing Registration/Inspections
 18,076 units registered in 2019; up from 15,675 units registered as of May 2017.

 25 illegal unit inspections (8-26-19).

 936 long and short-term housing safety inspections (8-26-19).


 The Housing Safety Office administers a rental housing registration and inspection program for residential
 rental properties in the City of Portland. All property owners are required to register residential rented
 apartment units, rented houses, rented rooms, or rented beds with the City's Housing Safety Office beginning
 January 1, 2016 or within thirty (30) days of renting a property. The annual registration fee pays for the cost of
 a citywide rental inspection program. Owners occupying a unit on their own property are not required to
 register the unit they occupy, but must register the units that are rented. Over 2,500 inspections of short-term
 and long-term units have been conducted as of August 26, 2019.



 52
 HOUSING TOOLBOX

Fire Department Inspection Program
 724 fire prevention inspections completed from January to September 4, 2019

In 2015, Portland established a task force to review its fire inspections programs. The traditional focus had been
on three-unit and above structures (as well as schools, fire permits, and commercial buildings), but following
the tragic Noyes Street fire, the focus of residential inspections is now one and two-unit properties, and with the
introduction of the short-term rental program, these dwelling units also require on-site inspections.




 53
 ATTACHMENT A
 INCOME

(1) AREA MEDIAN INCOME (AMI)
The household income for the median or middle household in the region. It is the midpoint of household
incomes for the HUD Metro Fair Market Rent Area (HMFA) as defined determined and reported by the U.S.
Department of Housing and Urban Development (HUD) based on data provided by the American Community
Survey 5-Year Estimates. If the AMI is qualified in some way- generally as a percentage of AMI, then this is
reference to HUD’s income limits.

 HUD Income Limits
 Low Income: Households with a gross household income at or below 80% of the Area Median Income.

 Very Low-Income: Households with a gross household income at or below 50% of the Area Median Income.

 Extremely Low-Income: Households with a gross household income at or below 30% of the Area Median
 Income.




(2) PORTLAND-SOUTH PORTLAND, ME METROPOLITAN
STATISTICAL AREA (MSA)
Comprised of 68 towns and cities within Cumberland, Sagadahoc, and York Counties as determined and reported
by HUD (coterminous with the PORTLAND-SOUTH PORTLAND HOUSING MARKET AREA).

 Cumberland County (28 cities and towns)
 Baldwin, Bridgton, Brunswick, Cape Elizabeth, Casco, Chebeague Island, Cumberland, Falmouth,
 Freeport, Frye Island, Gorham, Gray, Harpswell, Harrison, Long Island, Naples, New Gloucester, North
 Yarmouth, Portland, Pownal, Raymond, Scarborough, Sebago, South Portland, Standish, Westbrook,
 Windham, Yarmouth.


 Sagadahoc County (11 towns/cities)
 Arrowsic, Bath, Bowdoin, Bowdoinham, Georgetown, Perkins, Phippsburg, Richmond, Topsham, West
 Bath, Woolwich.


 York County (29 towns/cities)
 Acton, Alfred, Arundel, Berwick, Biddeford, Buxton, Cornish, Dayton, Eliot, Hollis, Kennebunk,
 Kennebunkport, Kittery, Lebanon, Limerick, Limington, Lyman, Newfield, North Berwick, Ogunquit, Old
 Orchard Beach, Parsonsfield, Saco, Sanford, Shapleigh, South Berwick, Waterboro, Wells, York.



 54
 ATTACHMENT A
 INCOME
(3) PORTLAND, ME HUD METRO FAIR MARKET RENT AREA
(Portland HMFA)
Custom geographic definition area used in the calculation of income limit program parameters, such as the
CDBG and HOME programs. A HUD Metro Fair Market Rent Area (HMFA) is a subsection of the larger Metropolitan
Statistical Area (MSA). Portland’s HMFA is comprised of 19 towns or cities in Cumberland County, and four towns
in York County.
 Cumberland County: (19 towns/cities)
 Cape Elizabeth, Casco, Chebeague Island, Cumberland, Falmouth, Freeport, Frye Island, Gorham, Gray,
 Long Island, North Yarmouth, Portland, Raymond, Scarborough, South Portland, Standish, Westbrook,
 Windham, Yarmouth.

 York County: (4 towns)
 Buxton, Hollis, Limington, Old Orchard Beach

(4) PORTLAND-SOUTH PORTLAND HOUSING MARKET AREA (HMA)
Comprised of 68 towns and cities within Cumberland, Sagadahoc, and York Counties as determined and reported
by HUD (coterminous with the PORTLAND-SOUTH PORTLAND, ME METROPOLITAN STATISTICAL AREA)


(5) MAINEHOUSING PORTLAND-SOUTH PORTLAND
METROPOLITAN AREA HOUSING MARKET
A similar but not identical list of geographic areas used in the calculation of income limit parameters by
MaineHousing for MaineHousing programs. MaineHousing’s Portland-South Portland Metropolitan Area Housing
Market is comprised of 22 towns or cities in Cumberland County, 18 towns in York County, one town in
Androscoggin County, and two towns in Oxford County.
 Cumberland County:
 Baldwin, Cape Elizabeth, Casco, Cumberland, Falmouth, Freeport, Frye Island, Gorham, Gray, Naples,
 New Gloucester, North Yarmouth, Portland, Pownal, Raymond, Scarborough, Sebago, South Portland,
 Standish, Westbrook, Windham, Yarmouth.

 York County:
 Alfred, Arundel, Biddeford, Buxton, Cornish, Dayton, Hollis, Kennebunk, Kennebunkport, Limerick,
 Limington, Lyman, Newfield, Old Orchard Beach, Parsonsfield, Saco, Waterboro, Wells.

 Androscoggin County
 Durham

 Oxford County
 Hiram, Porter
 55
 CITY OF PORTLAND
 Planning & Urban Development Department
 Housing and Community Development Division

TO: Councilor Duson, Chair
 Members of the Housing Committee

FROM: Victoria Volent, Housing Program Manager

DATED: November 6, 2019

RE: 2019 Housing Committee Report
 Goals, Work Plan, and Accomplishments

Introduction

The City Council met on January 28, 2019 to develop key priorities and goals for the
Council and its Committees. Listed below is the 2019 Housing Committee goal followed by
the 2019 Housing Committee Workplan priorities, recent committee accomplishments, and
consideration of items to consider for the year ahead.

2019 HOUSING COMMITTEE GOAL

Goal: Increase access to rental and ownership housing that is safe, affordable, and
accessible for working and low -income families.

2019 HOUSING COMMITTEE PRIORITIES

A. Leverage an increase in the number of affordable housing units in the City in fiscal
 year 2019/20 by leveraging new projects and identifying opportunities to capacitate
 completion of projects in the pipeline. As part of establishing the 2019 Housing Trust
 Fund Annual Plan (framework, policy and priorities):

 • Set an annual target of new units or percentage of units to be ready for occupancy
 by the end of each fiscal year;

 • Identify a specific a public/private partnership project to add rental and ownership
 units to our housing inventory by leveraging policy, planning expertise, funding,
 zoning, public land and/or other strategies;

 • Increase the dollars available for affordable housing development by proposing a
 general fund allocation to the Housing Trust Fund in the annual city budget
 process.

B. Spur new workforce housing to address demand from new businesses to the City.
 Evaluate recent changes to the Inclusionary Zoning Ordinance regulations to
 determine if a down payment assistance program is needed. Support implementation
 of the Hotel Linkage fee proposal and targeted use of any funds yielded to leverage
 development of workforce housing.
 1
C. Advance multi-year workplan initiatives. Continue to serve as the lead council
 committee for guidance, evaluation and implementation of ongoing housing program
 and policy initiatives including, for example;

 • HOME: Recommendation of 2019 HUD funded Community Development Budget;

 • Rental Housing Safety & Inspection Program (through the Permitting & Inspection
 Department and the Fire Department). Continue to assess program
 implementation and effectiveness, receive mid-year and annual reports re:
 registrations and safety inspections of long and short term rental housing, and
 sponsor public review of rental market data;

 • Density goals for transit corridors. Review to determine what more the city can do
 to actualize this goal identified in the Comprehensive Plan;

 • Permitting & Review. Receive evaluation report from the Permitting & Inspections
 Department on the outcome of its initiatives to achieve customer service
 improvements including: transparency, process consistency, and time frames for
 issuance of permits, etc.;

 • Planning Department. Review proposed revisions to Chapter 14 Land Use Code
 Division 30 and the site plan review process; maintain awareness of housing
 development trends and review recommendations for continuous improvement of
 department services to the public.

 • The Rental Housing Advisory Board. Prioritize the activation of this Board and
 incorporate a timeline for receiving policy recommendations from the RHAP into
 the Housing Committee Work plan.

 • Biennial Housing Report and Interim Housing Report. Develop and issue in the
 October 2019 the full biennial State of Housing Report. The report will include
 housing market facts, an overview of public policy best practices and developing
 trends, rental and ownership affordability data, and a broad range of current
 housing statistics; and include outcome measurement of policies implemented by
 the city, including for example:

 o Update on the Inclusionary Zoning Ordinance (impact of the amendment to
 the calculation of the maximum sale price of workforce homeownership
 housing);
 o Hotel Linkage Fee – development, implementation, review of actual project
 impact?
 o Incentives for Density (are they working?)
 o Status of the Recode Initiative


HOUSING COMMITTEE GOAL ACCOMPLISHMENTS

The Housing Committee met eleven times throughout 2019, including the meeting on
November 13. Outlined below is a brief overview of how the Committee addressed the
goal and priorities highlighted by the City Council.
 2
GOAL: Increase access to rental and ownership housing that is safe, affordable and
accessible for working and low -income families.

During a joint meeting held on May 21, 2019 of the Economic Development Committee
and Housing Committee, each Committee voted to forward the recommendation
designating 66 State Street and 37 Front Street as Affordable Housing Development
Districts and Tax Increment Financing Districts (AHTIF). The requests were approved by
the Council on July 15, 2019.

During the Housing Committee meeting on April 10, the Committee approved application
criteria for staff to identify and recommend eligible development projects to apply for
Affordable Housing Development funding. The application went out to the public on April
24 and proposals were due on May 31. Six proposals were reviewed by the Committee
during their July 10 meetings.

The committee voted to recommend to the City Council the award of Affordable Housing
Development funding to five of the six proposals submitted as follows:

1. Community Housing of Maine (CHOM): 83 Middle Street – $193,266 in HOME
 Investment Partnership Program Funds (HOME) and $136,734 in Housing Trust
 Funds. Creating 44 units of affordable rental housing for seniors (3 studio units, and 41
 one-bedroom units) (serving households with incomes up to 80% of the area median
 income (AMI) as long as the average income and rental limit in the project remains at
 60% or less of the area median income).

2. Developers Collaborative: 66 State Street - $299,999 in HOME Funds. Creating 30
 units of low-income rental housing (30 one-bedroom units) (13 units at or below 50%
 AMI and 17 units at or below 60% AMI). AHTIF financing provided through a Credit
 Enhancement Agreement at 75% of the increased taxable value returning an average
 of $89,072 annually to the developer over 30 years.

3. Portland Housing Development Corporation: 47 Boyd Street - $425,000 in Housing
 Trust Funds. Rehabilitate an existing three-story multifamily building from 9 units to 12
 units, featuring 8 units affordable at 50% AMI, 1 unit affordable at 80% AMI, and 3
 market rate units.

4. HomeStart: 18 Luther Street - $36,000 in Housing Trust Funds. Upgrade on the
 single-family rental house and add an accessory dwelling unit onto the rear of the
 building.

5. Portland Housing Development Corporation: 37 Front Street - Replace the existing 50
 family apartments at Front Street with a new multi-family apartment project containing
 a total of 105 new apartments of which 84 apartments will be maintained as affordable
 units (with 69% at or below 50% AMI, 11% at or below 60% AMI, and 20% set aside
 for homeless or disabled households), 21 units will be market rate and 8 will be
 homeownership units (six affordable at 100% AMI) in seven buildings for families and
 seniors. AHTIF financing provided through a Credit Enhancement Agreement at 75%
 of the increased taxable value returning an average of $201,897 annually to the
 developer over 30 years


 3
2019 HOUSING COMMITTEE PRIORITIES ACCOMPLISHMENTS:

A. Leverage an increase in the number of affordable housing units in the City in fiscal
 year 2019/20 by leveraging new projects and identifying opportunities to capacitate
 completion of projects in the pipeline.

The current Affordable Housing Development Fund application sets an annual
development goal of 65 to 90 units at or below median income based on available funding.
During 2019, the Council approved funding that would create 87 units of housing with 84
units at or below the median income (see discussion above for details), and replace 50
family apartments with 105 new apartments and 8 homeownership units.

The Housing Committee has reviewed and discussed opportunities to engage the city in a
public/private partnership to add housing units to the city’s housing inventory utilizing city-
owned and tax acquired property. Over the course of four meetings in 2019, the Housing
Committee provided direction on six promising, but challenging sites. Easements,
wetlands, a potential vernal pool, abandoned sewer pipes, Environmental Site
Assessment and, Department of Environmental Protection reviews are just some of the
issues to be addressed. Though the Committee planned to have completed this process
during 2019, each challenge represented an unforeseen delay in the process.

The Housing Committee pursued establishing an annual allocation into the Housing Trust
Fund through this year’s budget process and discussed allocating additional funding from
the proceeds of the WEX sale. However, the Council did not include a general allocation
for the Housing Trust Fund in the annual budget.

B. Spur new workforce housing to address demand from new businesses to the City.
 Evaluate recent changes to the Inclusionary Zoning Ordinance regulations to
 determine if a down payment assistance program is needed. Support implementation
 of the Hotel Linkage fee proposal and targeted use of any funds yielded to leverage
 development of workforce housing.

The Housing Committee recommended the Council appropriate up to $36,000 from the
Housing Trust Fund to lower the effective sale price of three Inclusionary Zoning Home
Ownership units by up to $12,000 per unit as soft second mortgages to potential buyers.
Council approved the order on January 17, 2019. The recommendation was based on the
recognition the calculation of the maximum sale price of an Inclusionary Zoning workforce
unit did not provide a broad range of qualified buyers. To forestall a reoccurrence, the
Planning Board amended the Guidelines for Developers of Inclusionary Workforce Units
(on June 12, 2018) to change the calculation of the maximum sale price of a workforce
unit from 30% of 120% AMI to 30% of 110% AMI. This change lowers the maximum sale
price of an Inclusionary Zoning homeownership unit. Since implementation of the change
in the maximum sale price, one Inclusionary Zoning homeownership unit has sold without
problem.

In 2019, Portland amended Chapter 14 of the Land Use Code to require new hotel
projects with 10 or more hotel rooms within any 5-year period, to provide low-income
housing for rent on-site, or pay a fee-in-lieu to support affordable housing in the City. The
Planning Board has approved two hotel projects since adoption of the Order (effective
February 22, 2019). Each developer chose to pay the fee-in-lieu for a total of $593,736 to

 4
be deposited into the Housing Trust fund at the time the certificate of occupancy is issued.


C. Advance multi-year workplan initiatives. Continue to serve as the lead council
 committee for guidance, evaluation, and implementation of ongoing housing programs
 and policy initiatives.

During the September 11, 2019 meeting of the Housing Committee, Permitting &
Inspections and the Fire Department presented a joint review regarding the Rental
Housing Safety & Inspections Program. The Fire Department provided an update on the
Fire Department Inspection Program while the Licensing and Housing Safety Division
prepared a review of long-term and short-term rental registrations

As part of the ReCode effort, staff is reviewing parking regulations and their consistency
and relationship to the city’s vision as it relates to transportation and housing density
within service and transit nodes. The Planning and Urban Development Department, in
cooperation with the Department of Public Works, continues to work on improvements to
the city's transportation infrastructure both on- and off peninsula in part to better
accommodate additional housing development. The redesign of Franklin Street and
improvements to priority corridors such as Forest Avenue would help accommodate
additional development and multi-model transportation improvements.

The Permitting and Inspections department presented an evaluation report to the
Committee on May 8 regarding the outcome of initiatives to achieve customer service
improvements, including: greater process transparency and consistency, and improved
timeframes for issuance of permits. During that same meeting, Planning and Urban
Development reported on the outcome of the Chapter 14 Land Use Code Division 30
amendments, and provided an overview of development trends.

In August 2018, at the recommendation of the Housing Committee, the City Council
approved changes to the composition and duties of the Rental Housing Advisory
Committee. The duties of the Rental Housing Advisory Committee will include providing
the Housing Committee with recommendations or proposals for improvements,
modifications, or changes to the City’s housing ordinance or policies. The Rental Housing
Advisory Committee (RHAC) will also identify educational opportunities, seminars, and
materials that would be useful to landlords and tenants. RHAC conducted their first
meeting on September 24, 2019 to elect co-chairs, determine a meeting schedule through
2020, and discuss potential work plan topics.

The 2019 Biennial Housing Report was presented to the Housing Committee during their
October 9 meeting. Comprised of six chapters and an Executive Summary, the report
provides insight into Portland’s housing demographics, housing affordability, housing
supply, housing demand, housing resources, and housing toolbox. At the request of the
Housing Committee, the Housing Report includes housing market data, an overview of
public policy best practices, developing trends, rental and ownership affordability data, and
a broad range of current housing statistics including outcome measurement of
implemented policies.




 5
ADDITIONAL 2019 ACTIVITIES

 • Committee recommended and City Council approved the 2019 Housing Program
 budget
 • Committee approved the 2019 Affordable Housing Development application
 • Committee recommended and City Council approved the FY 2020 Housing Trust
 Fund Annual Plan
 • Committee reviewed the FY19 end of year report to HUD
 • Committee reviewed proposed Portland Development Corp. by-laws to allow the
 use of Brownfield funds for residential projects
 • Committee reviewed and approved of Affordable Housing TIF applications
 • Committee approved funding requests received from the Affordable Housing
 Development application
 • Committee, City Council approved the Metro Regional Coalition Housing
 Resolution
 • Continued oversight of:
 o Rental Housing Safety & Inspection Program
 o Residential Rental Registration Program
 o Inclusionary Zoning requirements


FUTURE WORK

The 2019 Housing Committee continued the progress made by earlier Housing
Committees in another busy and productive year. Achievements centered on advancing
the Council goal of increasing access to rental and ownership housing that is safe,
affordable and accessible for working and low -income families. Listed below are a few
items for the next Housing Committee to consider as part of their work plan for 2019.

 • Eliminate or amend Inclusionary Zoning off-site rules.
 • Explicitly exempt development projects from Inclusionary Zoning that are otherwise
 providing affordable or worksforce housing(e.g. Avesta, Portland Housing
 Authority, Community Housing of Maine) that meets or exceeds IZ requirements.
 • Evaluate the potential for additional affordable housing development on small
 and/or nonconforming lots than currently allowed under City regulations.
 • Evaluate existing zoning for potential changes, consistent with areas identified in
 the City’s Comprehensive Plan, to accommodate increased residential densities.
 • Encourage and support the creation of additional low income and workforce
 housing through innovative funding and housing models.
 • Continue to encourage and incentivize the development of Housing First projects.
 • Continue to work on sustainable means of capitalizing the Housing Trust Fund.

ATTACHMENTS:
Housing Committee 2019 Priorities and Goal/Objective
Final 2019 Housing Committee Work Plan – Completed Work




 6
 Draft 2019 Housing Committee Work Plan
 as of November 8, 2019

November 13, 2019
 1. (Action Item) Review and Recommendation to the City Council on Disposition of Tax Acquired and City-Owned
 Property
 2. Review and Recommendation to the City Council – Affordable Housing Development Loan Program Modification
 and Refinance Request for Avesta’s Unity at Bayside development
 3. Review of Draft 2019 Biennial Housing Report
 4. Review of 2019 Annual Housing Committee Report
 5. 2019 and 2020 Work Plan Discussion (new and/or updated recommendations to forward to the 2020 Housing
 Committee)

December 11, 2019



 COMPLETED WORK
January 9, 2019
 1. 2019 Work Plan Discussion and Preparation for Council Goals and Objectives Setting Session
February 13, 2019
 1. Review, Discussion and Recommendation to the City Council of Proposed Portland Development Corp. By-Law
 Modification and Program Guideline Amendments to allow the use of Brownfields Funds for Residential Projects.
 2. Housing Committee Accomplishments 2016-2018
 3. Update on Rental Housing Advisory Committee
 4. Review and discussion of opportunities to engage the city in a public/private partnership to add housing units to
 the City’s housing inventory utilizing city-owned property. (Auburn St., 99 Capisic St., West School Site.) Possible
 Executive Session
 5. 2019 Work Plan Discussion – a. Housing Committee Goals for 2019; b. March meeting date
March 7, 2019 (Joint Meeting with Finance Committee)
 1. Housing Trust Fund Discussion
March 27, 2019
 1. (Action Item) Housing Program Budget - Review and Recommendation to the City Council
 2. (Action Item) Rental Housing Advisory Committee Update and Proposed Ordinance Amendments
 3. 2019 Work Plan Discussion
April 10, 2019
 1. Housing Policy Discussion – Non-Renewal of Leases and Notification Requirements, Voucher/Rental Subsidy
 Discrimination, Rental Application Fee Abuse
 2. (Action Item) Affordable Housing Development Application - Review and Approval to Issue by the Committee
 3. (Action Item) Review and Recommendation to the City Council of the 2019 Housing Trust Fund Annual Plan
 4. Community Development Week – April 22-26/Fair Housing Month
 5. 2019 Work Plan Discussion
May 8, 2019
 1. Report from the Permitting and Inspections Department on the implementation and outcome of initiatives
 concerning the permitting and review process, time frames, etc.
 2. Report from Planning & Urban Development regarding Residential Housing from 2016-2019.
 3. Verbal update from Corporation Counsel’s Office and staff regarding possible revisions to City Code Chapter 14,
 Division 23 Nonconforming Use and Nonconforming Buildings, Section 14-391 Nonconformity as to number of
 dwelling units.
 4. Review of Affordable Housing TIF Applications
 5. 2019 Work Plan Discussion
May 21, 2019 (Joint Meeting with Economic Development Committee)
 1. (Action Item) Review and Approval of Affordable Housing TIF Applications
 1
 2. Presentation from Health and Human Services Acting Director on possible public-private partnerships to support
 affordable housing projects on City-owned properties.
 3. Presentation of Disposition of Tax Acquired and City-owned Property
June 12, 2019
 1. Review of 2019 Short Term Rental Registration Program (Possible Executive Session)
 2. Communication Item FY20 HUD Annual Allocation Plan
 3. Review of Affordable Housing Development Funding Requests
July 10, 2019
 1. (Action Item) Review and Approval of Funding Requests Received from the Affordable Housing Development
 Application
 2. 2019 Work Plan Discussion
 3. Verbal update on miscellaneous items
August 14, 2019 cancelled
September 11, 2019
 1. Review of Affordable Housing Development Funding Request for 18 Luther Street
 2. Welcome and Organizational Meeting for the Rental Housing Advisory Committee
 a. Introduction of newly appointed members of the Rental Housing Advisory Committee
 b. Quick overview of the language establishing the Committee and respond to questions
 c. Facilitate the Rental Housing Advisory Committee in establishing a meeting schedule
 3. Metro Regional Coalition Housing Resolution
 4. Presentation, Overview and Integrated Report from Permitting and Inspections and Fire Department re: Short-term
 and Long-term Rental Housing Safety & Inspection Program - Implementation and Financial Report (Public
 Comment)
 5. Communication Item: FY19 HUD Consolidated Annual Performance Report
 6. Communication Item: Bayside Village Briefing
 7. 2019 Work Plan Discussion
October 9, 2019
 1. Presentation of 2019 Biennial Housing Report
 2. Communication Item: Update on 93 Douglass Street (site of former West School) – City Manager Jon Jennings will
 provide an update for the Committee.
 3. Communication Item: Update on Disposition of Tax Acquired and City-Owned Property
 4. 2019 Work Plan Discussion




 2
 Draft 2019 Housing Committee Work Plan
 as of November 8, 2019

November 13, 2019
 1. (Action Item) Review and Recommendation to the City Council on Disposition of Tax Acquired and City-Owned
 Property
 2. Review and Recommendation to the City Council – Affordable Housing Development Loan Program Modification
 and Refinance Request for Avesta’s Unity at Bayside development
 3. Review of Draft 2019 Biennial Housing Report
 4. Review of 2019 Annual Housing Committee Report
 5. 2019 and 2020 Work Plan Discussion (new and/or updated recommendations to forward to the 2020 Housing
 Committee)

December 11, 2019



 COMPLETED WORK
January 9, 2019
 1. 2019 Work Plan Discussion and Preparation for Council Goals and Objectives Setting Session
February 13, 2019
 1. Review, Discussion and Recommendation to the City Council of Proposed Portland Development Corp. By-Law
 Modification and Program Guideline Amendments to allow the use of Brownfields Funds for Residential Projects.
 2. Housing Committee Accomplishments 2016-2018
 3. Update on Rental Housing Advisory Committee
 4. Review and discussion of opportunities to engage the city in a public/private partnership to add housing units to
 the City’s housing inventory utilizing city-owned property. (Auburn St., 99 Capisic St., West School Site.) Possible
 Executive Session
 5. 2019 Work Plan Discussion – a. Housing Committee Goals for 2019; b. March meeting date
March 7, 2019 (Joint Meeting with Finance Committee)
 1. Housing Trust Fund Discussion
March 27, 2019
 1. (Action Item) Housing Program Budget - Review and Recommendation to the City Council
 2. (Action Item) Rental Housing Advisory Committee Update and Proposed Ordinance Amendments
 3. 2019 Work Plan Discussion
April 10, 2019
 1. Housing Policy Discussion – Non-Renewal of Leases and Notification Requirements, Voucher/Rental Subsidy
 Discrimination, Rental Application Fee Abuse
 2. (Action Item) Affordable Housing Development Application - Review and Approval to Issue by the Committee
 3. (Action Item) Review and Recommendation to the City Council of the 2019 Housing Trust Fund Annual Plan
 4. Community Development Week – April 22-26/Fair Housing Month
 5. 2019 Work Plan Discussion
May 8, 2019
 1. Report from the Permitting and Inspections Department on the implementation and outcome of initiatives
 concerning the permitting and review process, time frames, etc.
 2. Report from Planning & Urban Development regarding Residential Housing from 2016-2019.
 3. Verbal update from Corporation Counsel’s Office and staff regarding possible revisions to City Code Chapter 14,
 Division 23 Nonconforming Use and Nonconforming Buildings, Section 14-391 Nonconformity as to number of
 dwelling units.
 4. Review of Affordable Housing TIF Applications
 5. 2019 Work Plan Discussion
May 21, 2019 (Joint Meeting with Economic Development Committee)
 1. (Action Item) Review and Approval of Affordable Housing TIF Applications
 1
 2. Presentation from Health and Human Services Acting Director on possible public-private partnerships to support
 affordable housing projects on City-owned properties.
 3. Presentation of Disposition of Tax Acquired and City-owned Property
June 12, 2019
 1. Review of 2019 Short Term Rental Registration Program (Possible Executive Session)
 2. Communication Item FY20 HUD Annual Allocation Plan
 3. Review of Affordable Housing Development Funding Requests
July 10, 2019
 1. (Action Item) Review and Approval of Funding Requests Received from the Affordable Housing Development
 Application
 2. 2019 Work Plan Discussion
 3. Verbal update on miscellaneous items
August 14, 2019 cancelled
September 11, 2019
 1. Review of Affordable Housing Development Funding Request for 18 Luther Street
 2. Welcome and Organizational Meeting for the Rental Housing Advisory Committee
 a. Introduction of newly appointed members of the Rental Housing Advisory Committee
 b. Quick overview of the language establishing the Committee and respond to questions
 c. Facilitate the Rental Housing Advisory Committee in establishing a meeting schedule
 3. Metro Regional Coalition Housing Resolution
 4. Presentation, Overview and Integrated Report from Permitting and Inspections and Fire Department re: Short-term
 and Long-term Rental Housing Safety & Inspection Program - Implementation and Financial Report (Public
 Comment)
 5. Communication Item: FY19 HUD Consolidated Annual Performance Report
 6. Communication Item: Bayside Village Briefing
 7. 2019 Work Plan Discussion
October 9, 2019
 1. Presentation of 2019 Biennial Housing Report
 2. Communication Item: Update on 93 Douglass Street (site of former West School) – City Manager Jon Jennings will
 provide an update for the Committee.
 3. Communication Item: Update on Disposition of Tax Acquired and City-Owned Property
 4. 2019 Work Plan Discussion




 2