Using Tax Increment Financing for Affordable Housing in South Portland, ME

The Challenge

The former St. John Church in South Portland, ME, had been vacant since 2013. With a mounting need for affordable housing, the South Portland Housing Development Corporation (SPHDC) was in search of creative financing to support the redevelopment of this 2-acre site. They were interested in partnering with the City of South Portland and applying to the Maine State Housing Authority to create an affordable housing Tax Increment Financing (TIF) district and commissioned Camoin Associates to help.

The Solution

Camoin Associates completed Maine’s Affordable Housing TIF Program application including all needed financial tables and supporting documentation. In addition, Camoin Associates worked with SPHDC to submit the application to the City of South Portland and their TIF attorney to complete and approve the TIF Development Plan. For this TIF project, a 75% tax reimbursement would be granted to the developer, and 25% of those funds would go towards education.

The Impact

In July 2018, a resolution to create a TIF program was passed 7-0 by South Portland’s City Council.

The South Portland Housing Authority completed construction of a 42-unit apartment building on the site of the decommissioned church in 2023.

With a waiting list of over 850 households prior to opening, this development helps meet a very pressing need in the region.