Committee backs amending Doherty Commons covenants to allow for-sale condos at 100% AMI

The Portland City Council Housing Committee voted Aug. 2 to recommend that the full City Council amend the declaration of covenants for Doherty Commons to allow Phase 3 to be developed as price-restricted for‑sale condominiums instead of rental apartments.

The change would let the developer build condos restricted to households at 100% of area median income (AMI) or below. Mary Davis, director of the city's Housing and Community Development Division, told the committee the affordability levels would remain the same even though the housing type would change.

Developer Matt Peters, of Maine Cooperative Development Partners, said the switch to for‑sale units became financially feasible after the project secured a competitive MaineHousing grant of $1,500,000. Peters said higher interest rates had made the earlier rental financing plan infeasible. He told the committee that Phase 2 — 20 price‑ and income‑restricted units in two buildings — is under construction and expected to be completed this fall; Phase 3 would add another roughly 42 homes and to target a 2026 construction start for that phase.

Committee members asked about resale restrictions, condo fees and long‑term affordability. Peters said buyers will need a mortgage and will pay condo fees; Davis said the city would set an initial budget for association fees and that condo fees were taken into account when calculating an affordable sales price. Davis described the resale restriction the city will require: when an owner sells a unit, the city’s formula will determine an affordable sales price for the next buyer so the unit remains price‑restricted at the same AMI level when it is re‑sold.

After questions from council members, the committee voted to send a recommendation to the City Council to amend the covenants. Roll call on the motion recorded Councilor Regina Phillips, Councilor Sarah McNevich, Councilor Sykes and Chair Bayos Ali voting yes.

The developer and city staff framed the change as preserving the intended affordability and ownership goals of the original limited‑equity cooperative concept while using available state funding to complete Phase 3 in a tighter financing market. The amendment will go to the full City Council for final approval.

A related note from staff: under the developer’s current agreements with the city some parcels had originally been restricted to rental housing, so the recommended amendment is limited to the Phase 3 area and to keeping the same affordability targets.