Bangor reviews ARPA spending; council set to decide in June whether to reassign interest for Together Place

City Manager Debbie Lohrey reviewed the status of American Rescue Plan Act (ARPA) beneficiary awards at a Bangor City Council workshop on May 19, saying most projects "appear to be on track" and highlighting childcare, homelessness and housing investments.

Lohrey told the council that, as of the report, Bangor had received $20,400,000 in ARPA funds through March 31, 2025; $7,150,000 had been disbursed to beneficiaries and $13,300,000 remained in a segregated bank account but was fully obligated to federal requirements. She said unallocated interest as of April totaled $210,706, "and that assumes that you still allocate the $3.75 for Together Place housing," per the packet.

Why it matters: ARPA awards fund capital and operating projects across childcare, homelessness response and affordable housing that the city said are intended to expand capacity and services in Bangor.

Child care: Lohrey said 18.8% of Bangor's ARPA award was dedicated to child care. She reported progress on three major recipients: Bangor Children's Home, which is completing building repairs including roof and window work; the Bangor YMCA, which the city awarded $2,000,000 (Penobscot County contributed $3,000,000) and is in its final fundraising stage and expected to break ground later this year; and the Penquist childcare project (New Beginnings), which has a $1,500,000 award and equipment on site with a projected early construction start later in 2025.

Homelessness and shelter services: The council was told about a $241,000 award to the Bangor Public Library to support a social worker. Lohrey said the social worker had 940 interactions in 2024 and made 73 referrals across health, housing, substance use disorder, mental health, case management and legal services. Penobscot Community Health Center's Hope House has roughly $2,500,000 budgeted for initial design work; Lohrey said Hope House operations now are run by Preble Street while PCHC retains building ownership and is planning an expansion to add beds. Community Care (Shaw House), a youth shelter, received roughly $550,000 from both the city and Penobscot County for interior and exterior renovations and an HVAC replacement; Lohrey said Dunbar and Braun has been selected as contractor with construction expected to begin late June or early July.

Affordable housing: About 17.29% of ARPA funding went to housing. The council awarded $2,000,000 to the entity listed in the packet as the Bangor Housing Development Court to support infrastructure for 48 affordable units for people 55 and older on Sunset Avenue; staff said the project is expected to close funding with Main Housing in June with construction starting in early summer. Lohrey described additional site acquisitions, including purchase of an adjoining parcel from the University of Maine at Augusta and ongoing coordination with Maine Department of Transportation on a surplus parcel that has significant wetlands and a revised price. Habitat for Humanity Greater Bangor has acquired lots on Thirteenth Street and Grove Street (a double lot that will be demolished and used to build two houses) and is pursuing subdivision planning at 493 Valley Avenue. Penquist also received $540,000 for infrastructure at Milford Place; staff said utility work is complete and those funds have been expended.

Funding and administration notes: Lohrey said annual beneficiary reporting is required within 120 days after the end of the calendar year and that the city's grant manager is the primary point of contact responsible for entering expense reporting into the federal portal. Councilors asked about insurance claims related to ARPA-funded projects; staff recommended that if an insurance claim does not cover costs, any unreimbursed expense would be paid from interest funds rather than general taxpayer revenue. Lohrey said the city will post the annual reports and a summary of expenditures on the city's ARPA webpage.

Together Place housing: Councilors were reminded of a prior vote to substitute interest earnings for Together Place after concerns about meeting timelines. Lohrey said no units were yet under contract and it was unlikely the Together Place project would meet the June deadline; she recommended the council reconvene in June to decide whether to continue assigning interest earnings to that project.

Next steps: Councilors asked for follow-up in June on Together Place and updates on Heart of Maine United Way and a HEAL status item. After the ARPA review, the council moved to enter executive session under MRSA 4056(a) for committee appointments and discussion of an interim city manager.

Votes at a glance

- Motion to go into executive session under MRSA 4056(a) for committee appointments and interim city manager discussion — Passed (roll call recorded as yes: Councilor Cornium; Councilor Dean; Councilor Fish; Councilor Trumbull; Councilor Beck; Councilor Letterman; Councilor Mallard marked absent).