Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
Council approves submission of CDBG application to support Project HOME redevelopment at 12 School Street
Summary
The Saco City Council voted unanimously to approve submitting a Maine CDBG housing assistance grant application on behalf of Project HOME for 12 School Street, a planned redevelopment to create seven deed‑restricted affordable units and community space; the developer reduced its grant request to $249,999 citing Build America/Buy American procurement triggers.
The Saco City Council voted 7–0 on May 11 to authorize the submission of a Maine Community Development Block Grant (CDBG) application on behalf of Project HOME for the acquisition and redevelopment of 12 School Street.
Project HOME plans to convert the historic building into seven deed‑restricted affordable housing units, reserve two units for new city employees, and provide community and programming space on the second floor. Councilor Johnston moved to approve the application; Councilor Doyle seconded the motion and the measure passed on a roll call vote.
Why it matters: The project would add permanently affordable housing in downtown Saco and leverages multiple funding sources and tax-credit structures that private developers cannot access directly. The grant application would support rehabilitation work necessary to bring the building back into service for residential and community uses.
Developer and financing details: Project HOME representatives said they reduced their CDBG request from $500,000 to $249,999 after consulting state CDBG staff because requests above $250,000 could trigger Build America/Buy American procurement requirements that complicate sourcing of certain building systems. Dan Black, Project HOME’s CFO, told the council the organization has a $455,000 award from the Federal Home Loan Bank of Boston and has applied to the Federal Home Loan Bank of New York with an expected decision in the third quarter. Black estimated the total project cost at about $2,300,000 and described leveraging state and federal historic tax credits to monetize a large share of rehab costs.
Council questions and city exposure: Councilors asked whether the reduced grant request would change the timeline and what developer funding would cover. Project HOME said the reduced CDBG ask does not derail the timeline; they will combine awards, historic tax‑credit equity and guarantees of construction loans to finance the work. Councilors also asked whether the city would convey property if the project did not proceed; Project HOME said the property remains under a purchase‑and‑sale agreement and would stay with the city if the project failed to close.
Next steps: The council’s approval allows city staff to submit the full CDBG application on Project HOME’s behalf and continue pairing the request with other funding sources. The public hearing opened and closed with no public speakers. The grant application will proceed through state CDBG review and any subsequent funding decisions will be reported back to the council.
