Mills, MaineHousing Award $12 Million to Build 92 Affordable Apartments

Governor Janet Mills and MaineHousing awarded $12 million in grants through Maine's Home for Good program on March 18, targeting chronic homelessness with 92 new affordable apartments split across three cities: Portland, South Portland, and Bangor.

All 92 units will be supported by vouchers, which require tenants to pay up to 30 percent of their income on rent. The projects are part of MaineHousing's Home for Good program, more commonly known as "Housing First," an initiative established in 2023 intended to address chronic homelessness through stable, affordable housing and supportive services.

Each development is expected to utilize a financing structure that includes 4% Low-Income Housing Tax Credits, MaineHousing tax-exempt bond financing, and state subsidy to support capital expenditures. In total, the $12 million state investment will leverage $24 million in additional funding, including federal Low-Income Housing Tax Credits and MaineHousing loans. The $36 million effort includes $12 million from the state.

The three selected developments in Bangor, Portland, and South Portland were chosen through a competitive review process. Among them, the South Portland Housing Authority was chosen to develop and manage one of the properties, with executive director Mike Hulsey saying the plan is to develop 30 units, with the nonprofit Preble Street providing social services on site. The project will need approval from the South Portland planning board. In Bangor, the housing authority there had already received state approval to build 30 units of permanent supportive housing, a first of its kind for the city. Executive director Mike Myatt said the authority was then chosen to build another 30 apartments. Catholic Charities is expected to own and provide social services to the new Portland site.

In addition to construction financing through MaineHousing, the Maine Department of Health and Human Services will provide ongoing funding for the 24-hour supportive services required at each property. Residents will have 24-hour access to those services, with on-site social workers available to help residents find employment, support daily living skills, and provide access to services for substance use disorders or mental health challenges.

"Addressing Maine's housing needs calls for a number of creative approaches, including ways to get people off the streets and into stable housing, where they can then get help to turn their lives around," Governor Mills said. "With these awards from MaineHousing, communities will have more resources to address the serious challenges caused by chronic homelessness."

MaineHousing Director Dan Brennan framed the investment in public health terms. "Chronic homelessness is often caused by underlying and untreated physical and mental health illnesses, which when left uncared for, adds up far beyond the cost of providing people with the housing and support they need to stay healthy," Brennan said. "This proven formula not only saves lives in the long run, but it also saves money, and it improves the overall health of our communities and the state of Maine."

DHHS Director for the Office of Behavioral Health Sarah Squirrell said in a statement that "the Home for Good grants represent a critical pathway to ensure individuals previously facing chronic homelessness have access to services as they transition into new, stable housing," adding that services will be provided "with the goal of eliminating or mitigating previous barriers to successfully maintaining housing and preventing return to homelessness."

MaineHousing issued the first round of Home for Good awards in April 2025, providing $20 million in state funding for five projects in Sanford, Portland, Augusta, Auburn, and Bangor that will create a combined 138 units of housing to address chronic homelessness. A timeline for the three newly announced projects was not included in the announcement.