Portland greenlights 54 affordable apartments across from Maine Med garage
A rendering of a proposed apartment building at 879 Congress St. (Courtesy of Archetype Architects)
A gravel parking lot just across the street from the Maine Medical Center parking garage could soon be home to a seven-story affordable housing building with more than 50 units.
The Portland Planning Board on Tuesday approved plans for 54 one-bedroom apartments at 879 Congress St.
Proposed by Portland Housing Development Corporation, the development arm of Portland Housing Authority, the 50,000 square-foot building will also include 1,400 square feet of ground floor commercial space.
The units, all income-restricted, will be reserved for people making between 30% and 80% of the area median income, or between about $29,000 and $75,000 for a single person.
While the organization received the go-ahead from the planning board this week, Justin Barker, development officer, said it could be years before the building is ready for residents.
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Portland approved a record-high number of housing units in 2025. Developers completed far fewer.
The development corporation will apply for Low-Income Housing Tax Credits this fall with the hope of breaking ground in late 2027 or early 2028 and completing the building by 2030, Barker said.
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HOUSING GAINS, LOSSES
The project is also partially funded by a grant from the Maine Medical Center Healthy Neighborhoods partnership with the city — a program designed ” to offset the loss of housing associated with the hospital’s expansion over time, particularly within the St. John Valley neighborhood, by supporting housing in the neighborhood,” according to a request for proposals from the city.
It was not immediately clear Wednesday afternoon how many units or buildings have been lost.
But perhaps counter to the grant’s intent, to build more housing on that site, the city will also have to lose some. The property is already home to a five-unit building of market-rate apartments that will be demolished.
Barker said the affordable housing agency will offer the current residents financial assistance for packing supplies and security deposits, and once construction is complete, those who meet income-requirements will have the option to move into the new building.
A NEW ENDEAVOR
The planned ground-floor commercial space — likely either retail or dining — is the first time the housing agency has branched into commercial development, Barker said.
“We don’t have a lot of experience in that so we’re kind of learning as we go,” he said. “But we are certainly very excited by the location and opportunity for commercial development along this corridor and obviously being right near Maine Medical Center is a huge bonus.”
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There’s no tenant in mind yet, since so much is still in flux until the organization secures its funding, but Barker said it would ideally be something the building’s residents would be able to use.
If they are unable to find a tenant, Barker told the Planning Board, there are still ways the organization could “chop up that space and reuse it,” like partnering with a nonprofit in need of a home base.
OTHER AFFORDABLE PROJECTS
The Portland Housing project is the latest of several affordable housing developments proposed in recent weeks.
Last month, the planning board approved an Avesta Housing project of 33 units designed for people exiting chronic homelessness at the former Tortilla Flat location on outer Forest Avenue.
The project is part of the state’s Home for Good program, more commonly known as housing first, which is intended to address chronic homelessness through stable housing with built-in onsite supportive services.
The city is expected to consider a similar proposal Home for Good project just off Forest Avenue next month.
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Developers Collaborative is proposing two projects at 41 Ashmont St. — the 30-unit Home for Good project in concert with Catholic Charities Maine, and a 33-unit building for low-income people age 55 and older next door.
Together, all four projects would add 150 units of sorely needed affordable housing in the city.
UNCERTAINTY IN THE INDUSTRY
Development has seemingly hit a lull in Portland. As of June 30th, only 165 units have been approved, and only two of the approved projects have more than one or two units.
The Avesta Home for Good project and a GreenMars proposal for 87 small apartments on Congress Street near Washington Avenue account for 120 of those.
Comparatively, at the same time last year, the planning board had greenlit more than 1,000 units across six large-scale projects.
The drop-off follows a year of bustling approvals but few completions as developers battle myriad headwinds, including high development costs and regulations for both market rate and affordable projects they say are making projects impossible.
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Locally, developers have complained about the city’s inclusionary zoning policy, which a recent report concluded has hindered housing construction. Nationally, affordable housing developers say the federal Build America, Buy America program has created costly delays and threatened the viability of projects.
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The projects approved this year aren’t immune to these challenges. GreenMars has said that unless the city changes the inclusionary zoning policy soon, its Congress Street project won’t get off the ground.
And the Portland Housing project approved this week will still be subject to BABA, which requires projects using certain federal funds to source 95% of their materials from the U.S., despite the fact that many crucial components aren’t available from American manufacturers.
Barker said he’s hopeful that by the time the project is ready to break ground, Congress will have rolled back some of the requirements that have stalled other projects. The 21st Century Road to Housing Act, which passed last month, directed the Department of Housing and Urban Development to review and clarify the program rules.
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Tagged: affordable housing, development, housing
Hannah is the housing reporter at the Portland Press Herald, covering all aspects of Maine’s housing crisis - real estate and development, home ownership and rental issues and the lack of both affordability. More by Hannah LaClaire
