Council approves first reading to pursue $500,000 CDBG application for Project HOME at 12 School Street

The Saco City Council on April 27 approved first reading of a motion to pursue a Community Development Block Grant (CDBG) application for Project HOME’s proposal at 12 School Street. Councilor Johnston introduced the item, saying the city’s letter of intent had been accepted and the city was invited to apply for $500,000 to redevelop the building into seven deed‑restricted affordable housing units with a second‑floor community/program space.

The economic development department will administer any grant award and staff told the council the city faces no matching‑fund requirement; the developer is responsible for the 20% match. Councilor Johnston asked whether the project would return to council if state or federal funding did not come through; Director Desjardins said the applicant would continue seeking other funding and that the city would be kept apprised.

Councilors also asked about the duration of affordability covenants. Staff said deed restrictions and grant requirements typically include long‑term affordability terms (grant programs often require up to 30 years), and the council retains authority to add covenants when selling city property.

The council voted to approve the first reading and scheduled a public hearing and final reading for May 11, 2026. The vote on first reading was recorded as 5–0 in favor.

What happens next: the city will prepare the full CDBG application and hold the public hearing on May 11. If the application advances, additional project details and any required deed covenants will be presented to the council at the final reading.