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Council approves two TIF actions to support affordable housing; residents press for public engagement
Summary
Council reauthorized a credit‑enhancement agreement for the School Street affordable‑housing TIF and approved a new municipal Belmont Avenue TIF with a 50% / 30‑year credit‑enhancement for a proposed 60‑unit affordable housing project; public commenters sought more community conversation before expanding the district footprint.
The Belfast City Council voted on Aug. 5 to reauthorize a 30‑year, 50% credit‑enhancement agreement tied to the School Street affordable‑housing TIF and to approve a new municipal Belmont Avenue tax‑increment financing (TIF) district and associated 50%/30‑year credit enhancement that will support a proposed 60‑unit affordable housing development.
Thomas, the staff presenter, told the council the statutory changes enacted this year allow affordable‑housing TIF extensions that can support low‑income housing tax‑credit applications: "We can reauthorize a 30‑year 50% credit enhancement agreement," he said, citing LD 1783.
The Belmont Avenue proposal draws a larger district to provide flexibility to fund right‑of‑way and infrastructure improvements as development proceeds. The project partners said timing was critical for the state low‑income housing tax credit application. "These 60 units that we want to build — it delays it a whole year" if the town misses the current funding round, developer partner David Pelton said, urging council action.
Several residents spoke at a lengthy public hearing raising concerns about the district's scale, the need for broader community engagement on economic‑development strategy, and the possibility of future use of TIF revenues for large municipal projects. "It seems to me that this is kind of a backdoor approach" to designating a broad area, one resident said.
Councilors and staff responded that TIFs are subject to statutory limits, annual reporting and council approval of any future expenditures, and that the immediate credit‑enhancement under consideration would apply only to specific parcels carved from a larger property for the project. The council included a condition that the non‑LIHTC portions of the development remain affordable up to 120% of area median income for certain units.
Both actions passed by recorded summary (5–0). Staff said they would finalize application materials and the credit‑enhancement agreement and that any future spending of TIF revenues must follow standard council process, public hearings and project‑level approvals.
