Housing committee recommends three affordable‑housing TIF credit agreements to full council

The Portland City Council housing committee voted to forward three requests for affordable‑housing tax increment financing (TIF) credit enhancement agreements to the full City Council after brief presentations and public comment.

Mary Davis, housing and community development staff, told the committee staff supports recommending 75% capture of new tax increment over a 30‑year term for each of the three projects and that the city’s underwriter has preliminarily reviewed project financials and is comfortable with that level of support. “City staff supports the recommendation, and I’m happy to answer any questions that you may have,” Davis said.

The committee’s recommendation comes ahead of an application deadline for the state low‑income housing tax credit (LIHTC) program administered by MaineHousing. Davis said the LIHTC application is due Sept. 18 and that TIF applications must be submitted to MaineHousing no later than Aug. 19 to receive scoring consideration that can award up to three points for projects that secure a local credit enhancement agreement.

Prosperity Place (Baron Center) Prosperity Place is proposed on a portion of city‑owned property at the Baron Center. The project would create 50 mixed‑income family rental units built to the city’s green building standards: 15 one‑bedroom units, 25 two‑bedroom units, 8 three‑bedroom units and 2 four‑bedroom units. Ten units would be set at 30% of area median income (AMI); 20 units at 50% AMI; 17 units at 60% AMI; and three units at 80% AMI. As required by the city’s request for proposals, 30% of units will be set aside for referrals from…