Although the Town Council rejected a proposal brought by the Ordinance Committee for affordable housing on Nov. 11, councilors recognize the need for a variety of housing options in a town where the median cost of a single-family home is over $500,000 and there are limited affordable rental units.
The proposed ordinance was based on one adopted by Cape Elizabeth. It would have required developers of subdivisions with 10 or more units or lots to set aside 10% as affordable for moderate income buyers, defined as making between 80% and 120% of medium family income for the area. All of the units would be owner-occupied and subject to restrictions on resale. To keep a property affordable, it could be sold only to a moderate-income buyer at a price determined by the town.
Councilors all agreed that there needs to be a solution to the lack of affordable housing, sometimes referred to as workforce housing in recognition that many people employed in Gorham cannot afford to live here. Seven Siegel, who sponsored the proposal, said, “I do not think this is a perfect solution, but I don’t see another one. Currently there is no affordable housing in Gorham.”
Proposals with restrictive ordinances on builders and developers to encourage affordable housing can have an opposite effect. Councilor Lou Simms said that the jury is out on how effective they are. David Willis, a council member and local realtor, said there are other ways to achieve it. He questioned whether developers would build without incentives, a point made also by Rob Lavoie, who said there are no guarantees and builders don’t need to build here.
Deed restrictions were also seen as a problem. Councilors raised objections to the resale provisions that did not permit buyers to build up equity in the property. Philip Gagnon agreed on the need for affordable housing, but did not believe the restrictions limiting buyers from profiting from the increased value of the property to be fair. Willis also pointed out that owners were not protected from loss in a market downturn.
The Council voted not to send this proposal back to the Ordinance Committee for revision, but will look to other measures for addressing the problem. But as Siegel said, “The longer we delay, the worse it gets.”
One approach is to permit greater density in locations already designated as Residential Growth Areas. The Council amended the Land Use and Development Code to allow for affordable housing in the town’s growth areas, as required by state law LD2003. Builders would receive a bonus of 2.5 times the base density in these areas where 51% of units meet affordable criteria. Buyers of the affordable units would be subject to the income requirements and restrictive convents. So far, there have been no builders seeking this bonus.
David Willis believes, however, that restrictive ordinances on builders and developers to encourage affordable housing projects can shut them down. More realistic would be to offer incentives such as more flexibility on parking requirements and even tax incentives.
At the Dec. 3 Town Council meeting counselors passed an ordinance allowing up to 75 additional multi-family dwellings within the Growth Area designated in the town’s Comprehensive Plan, located near the town center. Each unit would not exceed 1,000 sq. ft. of living space. In addition to providing more market-rate units, dwellings of this size would probably be a net increase in property taxes. Property taxes from single-family homes with school-age children usually work the other way.
Tom Poirier, Community Development Director, sees increasing the number of 1,000 sq.ft. units permitted annually in the growth areas an incentive to builders, and more likely to produce a variety of housing than exclusionary zoning bonuses. “We need more incentives for density” he said. “We are Maine’s 14th biggest town and we need to provide for older people, young people, and families who can’t afford a house. Availability of money is a problem, but Gorham could pair up with Avesta or Westbrook Housing Authority on projects.”
Avesta Housing, a non-profit agency, has several housing projects in Gorham for people over 55 and people with disabilities, but no affordable housing facilities for other low- or moderate-income Gorham residents. Recently the Portland Press Herald reported that Avesta’s Home Ownership Center has inaugurated a new program “designed to help moderate-income first-time home buyers break into a housing market that seems determined to push them out.” Avesta will purchase and renovate homes in order to sell them to qualified applicants and an affordable price.
Westbrook Housing Authority uses some state and federal funding for housing and support services. Working with their partner, Westbrook Development Corporation, they have produced 597 affordable rental units and 93 affordable homes. Accessing funding from the state or federal government is complex, but the PPH reported this month that Maine Housing had awarded nearly $13 million for affordable housing, including 170 units for families in Portland, Biddeford and Mexico.
In Gorham large developments of single family and multifamily units are underway or in the planning stage. Robie Street Development south of the Village School and the Gorham Fairway on former golf course property eventually will have more than 1,500 dwelling units for people who can afford to pay market-rate. Meanwhile, the Town Council will continue to look for ways to generate housing for people who want to live in Gorham but can’t afford to.