Social Housing Task Force

SOCIAL HOUSING TASK MEMBERS City Councilor Kate Sykes FORCE City Councilor Sarah Michniewicz Paul Styslinger Tuesday, September 30, 2025 at 6:00 PM Bill Stauffer Jason Spector Via Zoom Cat Buxton Wendy Cherubini Cullen Ryan Matthew Peters Kristin Leffler Jon Fetherston Jonathan Culley Tim Wells REMOTE ACCESS INFORMATION: The Social Housing Task Force will conduct this meeting remotely via Zoom pursuant to the Remote Meeting Policy adopted by the Social Housing Task Force. Allow your computer to install the free Zoom app to get the best meeting experience. If you are not able to attend live either in person or via Zoom, a recording will be available in the Agenda Center following the meeting. https://us02web.zoom.us/j/86569643089?pwd=RhZ8QAN0vON2uLyxS0arKsSkg87hqt.1 PUBLIC COMMENT INFORMATION: To submit written public comment on an agenda item, email socialhousingtaskforce@portlandmaine.gov. Submissions must be received by 12:00 pm the day before the Social Housing Task Force meeting to guarantee their inclusion in the agenda packet. All submissions must include the commenter's name and legal address. To help ensure your comment is submitted for the correct item, please include the name of the agenda item (see below). AGENDA: Greater Portland Council of Governments Presentation: Regional Housing 1. Development Context i. GPCOG Regional Housing Trends Slides 2. City of Portland Staff Presentation: Portland Housing Development Context i. Housing Approvals and Completions ii. Housing Resources and Subsidized Housing Development iii. 2024 Portland Housing Report 3. Task Force Members Questions and Discussions 1 Page 1 Regional Housing Trends Portland Social Housing Task Force 9/30/25 Page 2 How Much Housing Do We Need? • Maine: Needs 84,300 new homes by 2030 • Cumberland County: Needs 18,830 new homes by 2030 2023 2024 Page 3 How Do We Measure Progress? Census Building GPCOG Decennial Census Permit Survey Collected Data • Most official and comprehensive • Collected every year • More accurate and complete count of housing units • Not all communities self-report • Asked about affordable vs. market • Only happens every 10 years (data estimated for those that don’t) rate • Doesn’t include all housing types • Time intensive (ex., publicly owned housing, some • Not all communities report ADU’s, mobile homes) • Not all permits result in completed • Not all permits result in completed housing units housing units Page 4 Cumberland County Building Permits 1992 2,000 1909 1944 Annual Target = 1,920 permits 1624 1547 1,500 1385 Total Building Permits 1,000 Great Recession 691 643 575 585 529 500 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: Census SOCDS Building Permit Database Page 5 Annual Building Permits by Community 2020 2021 2022 2023 2024 1,200 1,110 1,000 Total Building Permits 800 600 400 363 205 200 152 182 - Cape Cumberland Falmouth Freeport Gorham Portland Scarborough South Westbrook Yarmouth Elizabeth Portland Source: Locally reported to GPCOG Page 6 Net Building Permits [2020-2024 TOTAL] Market Rate Affordable 2,012 2,000 507 1,500 Total Building Permits 1,319 209 1,000 842 655 200 1,505 224 1,110 500 383 337 341 642 194 93 120 431 2 91 0 Cape Yarmouth Cumberland Falmouth Gorham Freeport Westbrook South Scarborough Portland Elizabeth Portland Source: Locally reported to GPCOG Page 7 Net Building Permits Per Capita [2020-2024 TOTAL] Building Permits per 1,000 Residents (2020-2024) Population 70,000 60 58 Building Permits per 1,000 Residents 60,000 50 44 50,000 2023 Population 40 40,000 31 32 29 30 27 30,000 23 20 20 20,000 13 10 10 10,000 0 - Cape Yarmouth Gorham Cumberland Falmouth Portland South Westbrook Freeport Scarborough Elizabeth Portland Source: Locally reported to GPCOG Building permits per capita shows the number of permits issued per 1,000 residents by dividing total permits from 2020–2024 by the 2023 population estimate and multiplying by 1,000. Page 8  Total People / Jobs 0 20,000 40,000 60,000 80,000 Portland South Portland Scarborough Brunswick 77,600 Westbrook Windham Portland’s 1950 Population Gorham Falmouth Standish Cape Elizabeth Yarmouth Freeport Jobs Cumberland Page 9 Gray People New Gloucester Bridgton Harpswell Raymond North Yarmouth Naples Casco Harrison Portland’s Role in the Region [PEOPLE + JOBS] Sebago Pownal Baldwin Chebeague Is. Source: 2023 ACS 5-year estimate (people) / 2022 Census LODES Version 8.0 (Jobs) Long Island Frye Is. Portland’s Role in the Region [HOUSING UNITS] Portland Cumberland County Portland's Percent of County 160,000 151,519 35% 149,452 Portland’s % of Cumberland County’s Housing Units 138,657 140,000 30% 122,601 30% 120,000 25% Total Housing Units 26% 100,000 94,513 24% 24% 24% 20% 80,000 15% 60,000 35,957 10% 40,000 33,836 35,747 31,858 28,145 20,000 5% 0 0% 1990 2000 2010 2020 2023 Source: Decennial Census / 2023 ACS 5-year estimate Page 10  • As a region, we’re currently not on track to meet statewide housing goals. • Building permits peaked in 2021-2022, then dropped in 2023 and 2024. • Portland is growing again and is a key driver of Key housing and affordable housing. Takeaways • But Portland’s share of regional housing is shrinking, so there’s room to play an even bigger role. Page 11 https://www.greatmaineneighborhoods.org/housing-dashboard Page 12 Thank You! Rick Harbison Senior Planner, GPCOG rharbison@gpcog.org Page 13 Social Housing Task Force Housing Approvals & Completions 09.30.2025 Page 14 Units Approved by Year (2010-2025) Page 15 Units Completed by Year (2010-2025) Page 16 AFFORDABILITY OF UNITS COMPLETED (2010-2024) Completed Units by Affordability Level (2010-2024) Completed Units by Affordability (2010-2024) 800 40% AMI 1% 50% AMI 13% 60% AMI 700 5% 215 600 80% AMI 75 1% 500 170 100% AMI 1% 120% AMI 400 66 2% 111 68 300 535 488 200 64 412 358 1 38 298 321 25 37 140 100 166 184 168 15 124 125 81 30 52 Market-rate 0 77% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Market-rate Affordable Page 17  2024 in Housing Approved Completed 464 units 582 units Rental Rental 85% 74% Affordable Market-Rate 74% 58% Multi-Family Multi-Family 85% 88% New Construction New Construction 58% 96% Page 18 HOUSING PRODUCTION (2017-projected) 7,000 5,810 2021-2030 Housing Production Goals Report 6,000 5,417 5,024 5,000 4,631 +4,463 units 4,238 3,845 4,000 3,452 2,870 2017-2027 3,000 Portland’s Plan 2,120 +2,557 units 1,935 2,000 1,503 1,137 987 1,000 563 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Units produced Cumulative total number of units produced Page 19 UNITS COMPLETED (2010-2024) Rental and Ownership Units • Most units are rentals • Rental units are more likely to be located on the peninsula Affordability • About a quarter of all units are affordable Bedroom Mix & Project Size • A significant majority of units are smaller • Larger, multi-family projects comprise the significant majority of completed units Historic Districts • Historic districts overperform in housing creation, including affordable housing creation • In 2024, the highest number of units completed were in historic districts • In 2024, the majority of units completed were in historic districts Accessory Dwelling Units (ADUs) • Almost all ADUs are off-peninsula and involve the reuse of an existing structure Page 20 INCLUSIONARY ZONING APPROVALS (2024) 25 IZ completed projects breakdown • 14 created units • 8 paid fee-in-lieu • 3 created units/paid fee-in-lieu Page 21 CURRENT + ONGOING INITIATIVES Maine Housing Opportunity Program (HOP) Grants Housing data dashboard ADU promotion Inclusionary zoning study HOTELS AFFORDABILITY EMPLOYEES GAP LINKAGE FEE Revised Land Use Code HOMES Hotel inclusionary zoning policy Developers 101 Page 22 Questions Page 23 Revenue Sources ● HOME Program- Federal funding ● Jill C. Duson Housing Trust Fund - Local funding ● Tax Increment Financing (TIF)- Local program Page 24 Revenue HOME Funding: FY 2024-2025 ● Portland- $514,873 ● Cumberland County- $325,050 ● Decrease in funding Jill C. Duson Housing Trust Fund: 2024 ● $993,573 in fees ● $4,880,126 in General Fund Allocation Page 25 Appropriations HOME Funding: FY 2024-2025 ● $294,489 for 186 Woodford Street Jill C. Duson Housing Trust Fund: 2024 ● $492,000 for 202 Woodford Street ● $155,511 for 186 Woodford Street ● $650,000 for 70 East Oxford ● $1,080,000 for 337 Cumberland Avenue Page 26 Inclusionary Zoning- Revenue Allocated during Planning Board review ● $577,066 approved fee-in-lieu payment for workforce housing units ● $1,304,376 approved fee-in-lieu payments for hotels Collected at the time the certificate of occupancy is issued ● $728,887 Fee-in-lieu payments received in for workforce housing ● $334,852 Fee-in-lieu payments received for hotels Page 27 Affordable Housing Tax Increment Financing (TIF) ● Flexible financing tool to assist affordable housing development. ● Uses taxes on future gains in real estate value to assist affordable housing development projects. 2024 Approved Affordable Housing TIFs ● 70 East Oxford ● 186 Woodford Street ● 202 Woodford Street ● 42 Atlantic Street Page 28 Subsidized Housing Development 202 Woodford Street Community Housing of Maine (CHOM) will partially demolish and rebuild/renovate the existing Woodfords Congregational Church Parish House into 46 units of studio and one-bedroom apartments for seniors earning up to 60% of the area median income. 10% of the units would be set aside for individuals residing in a Portland shelter. This project was made possible by $492,000 in Housing Trust funding and an AHTIF. Page 29 Subsidized Housing Development 186 Woodford Street Community Housing of Maine (CHOM) will build a new four-story, 51 unit building with studio and one-bedroom apartments affordable for households earning up to 60% of the area median income. 10% of the units would be set aside for individual residing in a Portland shelter. This project was made possible by $294,489 in HOME funding, $155,511 in Housing Trust funds, and an AHTIF. Page 30 Subsidized Housing Development 70 East Oxford Street Portland Housing Authority will develop a new six-story building with 50 affordable and 5 market rate apartments. 33 unit would be affordable at up to 50% AMI and 17 units would be affordable at up to 60% AMI. 10% of the units would be set aside for individual residing in a Portland shelter. There will be a combination of studio, one, two and three-bedroom apartments. This project was made possible with a $650,000 Housing Trust fund subsidy, and an AHTIF. Page 31 Subsidized Housing Development 337 Cumberland Avenue Youth and Family Outreach will construct a six story, 60 unit building with affordable and market rate apartments. 29 apartments would be affordable at up to 50% AMI, 19 apartments would be affordable up to 60% AMI, and 12 apartments would be market rate. There would be a mix of studio, one, two and three-bedroom units. 10% of the units would be set aside for individual residing in a Portland shelter. The first floor would be dedicated to child care services. This project was made possible with $1,080,000 in Housing Trust funds, and an AHTIF subsidy. Page 32 Workforce Housing Development Market Rate Development that includes workforce housing units ● 509 Forest Avenue (Rumery Lofts)- 10 of the 38 apartments will be affordable at 80% of the area median income (AMI). Lease up is expected in June of this year ● 482 Congress Street- 10 of 39 apartments will be affordable at 80% of the area median income. ● 985 Forest Avenue- 5 out of 21 apartments will be affordable at 80 AMI. All three properties represent renovation projects Page 33 Income and Rental Data ● The U.S Department of Housing and Urban Development (HUD) computes income limits for Portland based on local Area Median Income (AMI). ● Portland applies HUD’s income limits to determine and monitor household eligibility with the City’s inclusionary zoning and affordable housing programs. Income Limits Rent Limits Page 34 Monitoring Annual requirement conducted by the Housing and Community Development Department. ● Workforce Housing- 145 units ● HOME- 146 units ● Housing Trust Fund- 779 units ● Tax Increment Financing-1,437 units Page 35 2024 HOUSING REPORT May 2025 Page 36 The 2024 Housing Report has been prepared by the Departments of Housing & Economic Development and Planning & Urban Development for the City Council’s Housing & Economic Development Committee. This report is designed to give an overview of housing development activity, funding sources, and projects benefitting from funding subsidies in the 2024 calendar year. 2 Page 37 1. 2024 HOUSING DEVELOPMENT A. RESIDENTIAL APPROVALS In 2024, a total of 64 residential projects were approved in the City of Portland, representing 464 dwelling units. 13 of these projects, with 393 units, were reviewed by the Planning Board, and the remaining 51 projects were approved administratively. Rental/Ownership. Of the 464 total units approved in 2024, the majority (396, or 85%) are anticipated to be rental units, while the remaining units (68, or 15%) are anticipated as owner-occupied. A significant number of 85% rental units were approved at 186 Woodford Street near Woodford’s Corner, as well as in two projects on the of approved units are peninsula at 331 Cumberland Avenue and 70 East Oxford rentals Street (AKA 9 Boyd Street). The largest shares of anticipated ownership units were approved at 246 Eastern Promenade, within the Stroudwater Preserve subdivision, and in two separate 9-unit condominium projects at 64 Pine Street and 19 West Street. Affordability. The majority (268, or 58%) of the approved units for 2024 are proposed to be deed-restricted affordable housing for households earning at or below 80% Area Median Income (AMI) (Figure 1). All of these units are proposed as rental units and are located in buildings of 10 or more units. 25 of these units are proposed remain affordable to households earning at or below 80% of AMI, 69 are proposed to remain affordable at 60% AMI, and 174 are proposed to be affordable at 50% AMI. Figure 1: Units Approved by Affordability (2024) 38% 42% 15% 5% 3 Page 38  Figure 2: Units Approved by Project Size (2024) Project & Unit Size. Most of units approved in 2024 250 (408, or 88%) are proposed within buildings containing five or more units, with many of these buildings 200 significantly larger than five units. In fact, projects proposing 30 or more units account for 72% of all 150 approved units in 2024 (Figure 2). All ownership-unit Units projects were smaller in scale, each proposing fewer 100 than 15 units. In contrast, the vast majority (351, or 89%) of rental units are proposed in buildings with 15 or more 50 units. In terms of unit size, one-bedroom units made up the largest share of approvals in 2024 (38%), followed by 0 two-bedroom units at (34%). 1-4 5-9 10-19 20-39 40+ Number of Dwelling Units in Project In smaller approved projects within buildings of 1-4 units in size, units tended to be larger, primarily comprised of Figure 3: Units Approved (2024) two, three, or four bedrooms (47, or 84%). In larger approved projects of five or more total units in size, smaller one- and two-bedroom units predominated. Location. A significant number of approved units in 2024 (280, or 60%), were located on the peninsula, concentrated near Congress Street. This includes the majority of both ownership and rental units. One notable exception to this pattern is the City’s largest approval in 2024 at 186 Woodford Street, located near Woodford’s Corner (Figure 3). Additionally, 130, or 28% of all approved units in 2024 were located in historic districts. Nearly all approved units (453, or 98%) are located within ¼ mile of a fixed-transit route, including all projects proposing the creation of 5 or more units. Type of Construction. More than half of the approved units in 2024 (253, or 55%) are proposed as new construction, while the remaining 45% of approved units involve the adaptive reuse of an existing structure through renovation or addition. New construction rates are fairly consistent across project sizes, with 57% of smaller projects (1-4 units) and 54% of larger projects (5 or more units) involving new construction. A significant 55% majority (74%) of affordable units are proposed as new of approved units are construction, while 57% of market-rate units involve the proposed to be created reuse of existing structures. Additionally, 88% of through new construction ownership units are new construction, whereas 55% of rental units are expected to be created through reuse. 4 Page 39  Figure 4: Units Approved (2024) 464 units approved 58% (268) deed-restricted affordable 85% (396) rentals 88% in buildings of 5 or more units 186 Woodford Street 84 affordable units of new construction and reuse of the Woodfords Congregational Church 70 East Oxford Street 55 affordable units of new construction Legend 1-4 Units 331 Cumberland Avenue 60 affordable units of new 5 or More Units construction Transit Line 5 Page 40  6 Page 41 B. RESIDENTIAL CERTIFICATES OF OCCUPANCY In 2024, 71 residential projects were completed, resulting in the creation of 582 units. 11 of these projects, representing 90% of units (522) were reviewed by the Planning Board. The remaining 10% of projects (56) created 60 units and were reviewed administratively. 74% Rental/Ownership. Of the 582 total units completed in 2024, the majority (431, or 74%) are anticipated as rental units. of completed units are rentals Notable larger projects completed in 2024 with rental units include 200 Federal Street, 91 Winter Street, 63 Front Street, and 73 Winter Street. Larger projects with ownership units include 387 Commercial Street, 65 McAuley Way (Building 2), the Stroudwater Preserve Subdivision, and 39 Winter Street. Affordability. The majority of units completed in 2024 (413, or 71%) are market-rate (Figure 5). The 169 affordable units completed in 2024 are all rental units and are located in developments of 20 or more units. Of the 169 affordable units, 27 are restricted to households earning at or below 100% of AMI, 50 are affordable at 60% AMI, 90 at 50% AMI, and 2 units at 40% AMI. Figure 5: Units Completed by Affordability (2024) 15% 71% 9% 5% <1% 40% AMI 7 Page 42 Project & Unit Size. A significant number of Figure 6: Units Completed by Project Size (2024) completed units (495, or 85%) are located within 500 projects containing five or more units, with projects 450 of 30 or more units accounting for 80% of all 400 completed units. The majority of completed 350 ownership units (92, or 61%) are in larger multi-unit 300 developments such as (387 Commercial Street and 65 McAuley Way). A much larger share (403, or 91%) Units 250 200 of completed rental units are in projects of 30 or 150 more units. In terms of unit size, the highest 100 proportion of completed units were one-bedroom 50 units (47%), followed by studios at (22%). Units in smaller projects are generally larger, with 79% 0 1-4 5-9 10-19 20-39 40+ consisting of one, two, or three bedrooms. Units in Number of Dwelling Units in Project projects with 5 or more units typically follow different size trends, with a greater proportion of smaller are smaller units, with 92% comprised of Figure 7: Units Completed (2024) studio, one, or two-bedroom units. Location. The majority of completed units (462, or 80%), both rental and ownership, were located on the peninsula in the Downtown and West End neighborhoods. There were also larger projects completed off-peninsula in the East Deering (45 Front Street) & Deering Center (65 McAuley Way) neighborhoods (Figure 7). 372, or 64% of all completed units in 2024, were located in historic districts, representing the highest number of total units created in historic districts in the last fourteen years. Nearly all completed units (561, or 96%) are located within ¼ mile of a fixed-transit route, including all projects proposing the creation of 5 or more units. Type of Construction. Almost all units completed in 2024 (561, or 96%) were created through new construction, while the remaining 4% involved the reuse of an existing structure through renovation or addition. All projects that created 5 or more units, as well as all affordable housing projects, were 96% completed through new construction. of completed units were created through new construction 8 Page 43  Figure 8: Units Completed (2024) 582 units completed 29% (169) deed-restricted affordable 74% (431) rentals 85% in buildings of 5 or more units 73 & 91 Winter Street 200 Federal Street 95 affordable rental units 236 market-rate and 27 affordable units Legend 1-4 Units 387 Commercial Street 5 or More Units 64 market-rate ownership units Transit Line 9 Page 44  10 Page 45 2. HOUSING DEVELOPMENT TRENDS A. TOTAL PRODUCTION 4,383 approved housing units have been created in the City of Portland between 2010-2024. Over the past 14 years, housing production has shown an upward trend. In keeping with this trajectory, 2024 recorded the second-highest level of housing production since 2010, with 582 dwelling units completed (Figure 10). Guided by the premise that “all who work in Portland should have the option of living in Portland,” the City’s 2017 comprehensive plan, Portland’s Plan 2030, established a goal of 2,557 new housing units over the ten- year period from 2017-2027, or an average of 256 new units per year. As of the end of 2023, housing production has exceeded that target (Figure 9) and if the current pace continues, Portland is projected to surpass its comprehensive plan goal by more than 2,000 units by 2027. In September of 2024, the State of Maine published Statewide and Regional Housing Production Goals for the period 2021-2030, including specific goals for each of the state’s sixteen counties. Cumberland County has the highest goal in the state at 18,830 new housing units, reflecting both historic underproduction and projected future demand. The state has not set municipal goals. However, if, at a minimum, Portland maintains its current share of the county’s total housing stock (23.7%), the city could be expected to account for 23.7% of the county-wide goal, or 4,463 units. Since 2021, 1,948 new housing units have been created in Portland, representing just under 44% of this target. If current trends continue, the city is projected to deliver approximately 4,307 units by 2030, or 96.5% of its proportional share of the county-wide goal. The City will continue to monitor total production in light of the statewide goals. Figure 9: Housing Production by Certificates of Occupancy Issued (2017-projected) 7,000 2021-2030 Housing Production Goals Report 5,810 6,000 5,417 +4,463 units 5,024 5,000 4,631 4,238 3,845 4,000 3,452 2,870 3,000 2017-2027 Portland’s Plan 2,120 +2,557 units 1,935 2,000 1,503 1,137 987 1,000 563 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Units produced Cumulative total number of units produced 11 Page 46 Figure 10: Units Completed by Year (2024) 800 700 600 500 400 750 300 563 582 200 424 432 366 100 248 30 192 166 162 150 185 15 118 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 B. RENTAL/HOMEOWNERSHIP The majority of units completed in the last fourteen years (68%) have been rental units. In 2024, the proportion of rental units was higher than the 14-year average, at 76%. Four of the past five years have seen the number of completed rental units exceed ownership units, aligning with regional and national increases in larger rental housing production during the COVID-19 pandemic 1 (Figure 11). Years with higher ownership totals can be attributed to larger multifamily condominium projects (Table 3). Figure 11: Completed Units by Ownership (2010-2024) 81 800 700 89 138 600 500 303 172 61 400 70 669 300 38 91 111 74 474 89 444 200 59 6 305 260 100 8 7 24 154 178 75 88 121 74 59 61 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Rental Ownership The significant majority (95%) of ownership units completed from 2010-2024 are market rate, with only 63 ownership units created for households earning less than 120% AMI. This lack of affordable homeownership production can largely be attributed to a heavy reliance on Low-Income Housing Tax Credits (LIHTC), which are designed for affordable rental projects. 1 Joint Center for Housing Studies of Harvard University. America’s Rental Housing 2024. 25 Jan. 2024. 12 Page 47  Table 3: Larger Multi-family Ownership Projects by Year of Completion Year of Total Ownership Portion of All Ownership Completion Address Units Affordability Units Completed in Year 2014 40 Hancock Street 40 Market Rate 44% 802 Ocean Avenue 150 Market Rate 101 York & 25 High Streets 63 Market Rate 2018 88% 62 India Street 27 Market Rate 169 Newbury Street 26 Market Rate 20 Thames Street 27 Market Rate 2019 20 @ 120% AMI 56% 60 Parris Street 23 3 Market Rate 75 Chestnut Street 54 Market Rate 2022 12 @ 120% AMI 69% 104 Grant Street 23 11 Market Rate C. AFFORDABILITY Since 2010, 23% of the completed units within the Figure 12: Completed Units by Affordability Level city qualify as affordable, with rents or purchase (2010-2024) prices limited to households earning below 120% of the area median income (AMI) (Figure 12). The 40% AMI 50% AMI proportion of deed-restricted affordable housing 1% 60% AMI 13% 5% units completed in 2024 was slightly higher, at 29%. And in 2024, the percentage of affordable 80% AMI units approved was significantly higher, at 58%. 1% Of the affordable units created since 2010, the 100% AMI majority (81%) have been designated for 1% households earning less than 80% of AMI. In 2024, again, the proportion was slightly higher, with 84% of completed affordable units in 2024 designated 120% AMI 2% for households earning less than 80% of AMI. A significant majority (76%) of completed affordable units between 2010-2024 are located on the peninsula. 2024 saw a decrease from this trend, however, with only 67% of completed affordable units located on-peninsula. Recent Market-rate approval data suggests this shift is continuing, with 77% several significant affordable housing projects approved off-peninsula between 2022-2024. 13 Page 48 D. BEDROOM MIX & PROJECT SIZE When looking at bedroom mix (Figure 13), data Figure 13: Completed Units by Bedroom Mix from the last 14 years shows that a large (2010-2024) percentage of completed units (85%) are small in size (studios to two-bedroom units). While the 5-bedroom 0% 6-bedroom size distribution of units completed in 2024 held 4-bedroom 0% with this trend, there were slightly more studios 2% and less two-bedroom units than in previous 3-bedroom Studio years. 13% 16% In terms of project size, 86% of units completed in 2024 are from a relatively small number of 2-bedroom large projects (Figure 14). From 2010-2024, 22% average project size has increased significantly 1-bedroom from 2,034 square feet to 11,448 square feet, 47% reflecting the overall increase in larger, multi- family development projects. This trend is accompanied by a decrease in average square footage per unit (1,988 to 1,799 square feet), which aligns with the pattern of smaller unit sizes with multi-family developments. E. LOCATION Over the past 14 years, the neighborhoods of Figure 14: Units Completed by Project Size Bayside, Downtown, Munjoy Hill, and the West (2010-2024) End have seen the highest levels of new housing 3,000 construction (Figure 15). From 2010 to 2024, the majority of completed ownership units (59%) 2,500 and rental units (79%) have been located on the 2,000 peninsula, where larger multi-family developments are far more prevalent and zoning Units 1,500 has historically been more permissive. A substantial majority—92%—of all completed 1,000 units during this period were built within ¼ mile 500 of a fixed-transit route. This pattern continued in 2024, with large-scale multi-family developments 0 primarily completed in Downtown and the West 1-4 5-9 10-19 20-39 40+ End. Number of Dwelling Units in Project 14 Page 49  Figure 15: Completed Housing Units (2010-2024) Legend 1-4 Units (19% of all Completed Units) 5 or More Units (81% of all Completed Units) Transit Line 15 Page 50  F. HISTORIC DISTRICTS In 2023, the City published Trends in Portland’s Historic Districts, an assessment of demographic and development trends in and outside of historic districts from 1990-2021. The study generally found that, despite lower levels of new construction, historic districts have experienced similar increases in density as areas outside of historic districts through a mix of additions and repurposing of structures for higher residential density. Although Figure 16: 73 & 91 Winter Street only 4% of the city’s land area lies within historic districts, historic districts contain 25% of the city’s total housing units 2, and since 2010, the ratio of housing units completed within districts (35%) suggests that these areas generally outperform other parts of the city in terms of housing production. This holds for affordable housing as well, with 36% of completed affordable units located within historic districts from 2010-2024. In 2024, development in historic districts was especially strong, with more units completed than in any year since 2010. These projects accounted for 71% of all housing units completed citywide, marking a high point both in absolute numbers and as a share of total development. Figure 17: Completed Units in Historic Districts (2010-2024) 800 700 600 262 500 400 263 58 372 40 152 300 200 57 100 34 27 41 54 100 1 59 3 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Rest of City Historic Districts G. ACCESSORY DWELLING UNITS (ADUs) Since 2010, 88 ADUs have been approved and 53 ADUs have received certificates of occupancy in the city. The vast majority of completed ADUs (96%) are located on the mainland off-peninsula. Most ADUs completed between 2010-2024 (89%) involve the reuse of an existing structure (e.g., an internal conversion or an addition to an existing structure). 2 City of Portland Assessment Records (as of February 28, 2025) 16 Page 51 The City’s ADU policy has evolved significantly over the past decade, with major changes introduced in 2020 to allow up to two ADUs on any legal residential property. Although the total number of ADUs approved annually remains relatively modest, ADU approvals have roughly tripled since this new ADU framework was implemented, from an average of less than three per year before 2020 to 18 in 2023 and 16 in 2024. In 2024, there was a noticeable shift away from ADUs created through the reuse of existing structures, with only 64% involving reuse, reflecting a growing preference for new, freestanding ADUs. This trend is also evident in 2024 approvals, which included a higher number of new detached units than in previous years. Figure 18: Approved and Completed ADUs by Year (2010-2024) 2024: ReCode Phase 2 allows 20 more flexibility for ADUs 18 16 14 2020: ReCode Phase 1 allows 12 up to 2 ADUs 10 2015: ADUs expanded as 18 permitted uses 16 8 14 6 10 11 4 8 7 6 2 4 4 5 5 3 3 3 2 3 3 3 2 2 2 0 1 1 1 1 1 1 1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Approved Completed H. INCLUSIONARY ZONING The City’s inclusionary zoning (IZ) policy requires Table 4: Inclusionary Zoning Over Time that all residential projects of 10 or more dwelling units either create affordable units or pay an in- IZ Before and After Citizen Referendum lieu fee to the Jill C. Duson Housing Trust Fund. This policy represents an attempt to leverage the Year % of Fee-in-Lieu Affordability Level Affordable (Adjusted (% of AMI) private market to create affordable housing. Units Annually) After the Green New Deal citizen referendum Required Rental Ownership passed in 2020, changes were made to the inclusionary zoning policy (Table 4). The 2015 10% $100,000 100% 120% percentage of affordable units required increased from 10% to 25%. The referendum also resulted 2020 25% $150,000 80% 80% in deeper levels of affordability for IZ units, changing affordability levels for rentals from 100% AMI to 80% AMI and ownership units from 120% to 80%. Of the 13 residential projects approved by the Planning Board in 2024, the majority of projects either fell below the 10-unit threshold or were exempt due to the use of subsidies for affordable housing. Four projects triggered compliance with IZ requirements. Two of these projects, 509 Forest Avenue and 482 Congress Street, involved the adaptive reuse of existing buildings. Another, 246 Eastern Promenade, was proposed as 17 Page 52 new construction. The fourth project, 985 Forest Avenue, was subject to IZ requirements due to an enforcement action related to unpermitted dwelling units. The property owner was issued a notice of violation and, in order to legalize the 18 existing units, was required to comply with the IZ ordinance. Of these four inclusionary zoning projects, three proposed to provide some or all required IZ units on-site, while one, 246 Eastern Promenade, opted to pay an in-lieu fee totaling $577,067 (Table 5). Table 5: Planning Board Approvals and IZ Applicability (2024) Units Affordable Number of IZ IZ On- Address Approved Units Approved required IZ units Applicability site/fee 186 Woodford Street 84 84 0 Exempt 331 Cumberland Ave. 60 48 0 Exempt 70 East Oxford Street 55 50 0 Exempt 156 High Street 31 31 0 Exempt 42 Atlantic Street 30 30 0 Exempt 19 West Street 9 0 0 N/A 64 Pine Street 9 0 0 N/A 90 Atlantic Street 6 0 0 N/A 56 Cumberland Avenue 5 0 0 N/A 509 Forest Avenue 38 10 10 25% On-site 482 Congress Street 35 10 10 25% On-site 985 Forest Avenue 18 5 5 25% On-site $577,067 246 Eastern Promenade 13 0 0 25% fee-in-lieu Total 393 268 Since the creation of the City’s IZ policy in 2015, 47 projects have been subject to the City’s IZ ordinance. As of the end of 2024, 25 of these projects have been issued certificates of occupancy (Figure 19). 145 IZ units have been created and a total of $3,467,237 has been paid into the City’s Housing Trust Fund. Of the 25 completed projects required to provide IZ units, 14 have created units and 8 have met the requirement through a fee in-lieu, and three have met the requirement through providing units & paying a fee-in-lieu. Figure 19: IZ and Non-IZ Units Completed by Year of Approval (2016-2024) 1,000 97 800 600 29 400 5 844 1 3 9 200 454 299 354 0 1 241 247 0 18 0 87 67 2016 2017 2018 2019 2020 2021 2022 2023 2024 Non-IZ Units IZ Units 18 Page 53 3. HOUSING-SUPPORTIVE LAND USE POLICY The City’s guiding policy documents place a strong value on housing creation, diversity, and affordability. These concepts are a centerpiece of Portland’s Plan 2030, and have been Council priorities for many years. The housing component of Portland’s Plan states that the city must “recognize that [its] vitality rests on the availability of diverse, secure housing options for existing residents, new arrivals, and all stages of life” (p. 47). In keeping with Portland’s Plan, the City of Portland has worked for decades to revise land use policy with the goal of both retaining existing housing supply and encouraging the production of housing of a wide range of types and sizes. The City’s land use code has long included a housing replacement ordinance, for instance, which requires any development proposals that remove housing to replace those units or contribute to the City’s Housing Trust Fund. In the past decade the City has modified base zoning (changing permitted uses, increasing density, height, and minimizing setbacks), simplified provisions for ADUs, and removed commonly perceived barriers to housing production, like parking requirements. Simultaneously, the City’s land use code has been used to implement affordable housing goals. Since the mid-2000s, the code has included dimensional bonuses for affordable and workforce housing. Affordable housing applications have been eligible for a reduction in fees and priority review since the mid-2000s. In 2015 the City adopted inclusionary zoning, which requires that projects of 10 or more dwelling units provide a share of workforce housing or contribute financially to the City’s Housing Trust Fund. A second inclusionary zoning policy was adopted in 2019 for hotel projects. A. RECODE PHASE II In late 2024, the City Council adopted the second phase of ReCode Portland, a two-phase initiative to rewrite the City’s entire land use code with the aim of aligning it directly with the goals of Portland’s Plan. Housing was a major focus of ReCode, and ultimately, the revised code adopted by the City Council expands opportunities for residential growth across the city. In historically low-density residential zones, particularly off-peninsula, the code creates opportunities for new, mid-density housing in the form of three- and four- family buildings, with more flexibility in terms of dimensional standards. The revised code also creates targeted opportunities for much more housing in mixed-use zones and along public transit routes, with increases in permitted heights and eliminating density requirements. The new code introduces parking maximums, simplifies affordable housing and inclusionary zoning requirements, eliminates barriers to ADU production, and streamlines the site plan review process for small and mid-density housing projects, as well as changes to residential use. While land use policy is far from the only factor affecting housing construction in the City of Portland, the revised land use code creates significant opportunities, and moving forward, the City’s housing data collection and reporting efforts put it in a strong position for monitoring the ways in which the market begins to respond. B. CURRENT AND ONGOING INITIATIVES In addition to the transformative changes adopted through ReCode Phase II, work continues with several current and ongoing initiatives focused on housing-supportive policy, including: 19 Page 54 Housing Dashboard. In 2023 the City developed an interactive online housing dashboard that visualizes housing trends from 2010 onward. The dashboard is updated quarterly using information from City building permit and site plan records. The dashboard shows approved and completed units, including data on affordability, ownership, and location. Continuing forward, the dashboard will supplement the annual housing report, providing current information on key metrics to members of the public, elected officials, and City staff throughout the year. State of Maine’s Housing Opportunity Program (HOP) Grant - Housing Policy Study. In 2025, the Planning & Urban Development Department was awarded a $50,000 grant through the State of Maine’s Housing Opportunity Program. The funding will support a comprehensive evaluation of existing housing policies, with a particular focus on Portland’s inclusionary zoning ordinance. The study will analyze housing production trends, regulatory factors that may be influencing those trends, and identify opportunities to strengthen the effectiveness of the City’s housing policies within the context of the local market. State of Maine’s Housing Opportunity Program (HOP) Grant - ADU Educational Materials. In 2025, GPCOG, in partnership with the Planning & Urban Development Department, was awarded a grant to develop educational materials—including a website and video—on how to build accessory dwelling units (ADUs) in the City of Portland. These educational efforts aim to explain the regulatory process, dispel common misconceptions about regulatory barriers, and provide a central resource where people can learn more about creating ADUs on their properties. Hotel Inclusionary Zoning Ordinance. In 2019, the City adopted a hotel inclusionary zoning ordinance, requiring hotel projects and hotel expansions with 10 or more rooms to either provide low-income housing units or contribute a fee-in-lieu to the City’s Housing Trust Fund. City staff are currently analyzing and preparing recommendations for the Planning Board and City Council—based on feedback from the Housing & Economic Development Committee—to consider potential modifications and increases to the fee-in-lieu paid by hotel developments in support of affordable housing creation. Developers 101 Document & Forum. To promote transparency and help both current and prospective applicants better understand the development review process—including site plan and subdivision applications, as well as Planning Board reviews—the City is developing new materials that will clearly outline application requirements, review timelines, legal obligations, neighborhood engagement expectations, and case studies of best practices. These resources aim to support a review process that is clear, consistent, and predictable and aim to dispel common misconceptions about process and regulatory barriers. 20 Page 55 4. HOUSING PROGRAMS A. FEDERAL REVENUE SOURCES HOME. HOME is one of the primary federal tools that HOME FUNDS AT A GLANCE states and local governments have for the production 1,558 HOME housing units created and and preservation of affordable rental and owner- subsidized since 2000 occupied housing for low-income to extremely low- $11.5 million HOME funding allocation since income families, including mixed-income housing and 2000 housing for the homeless. It is an anchor of the 85% Percentage of HOME units that nation’s affordable housing finance system and can are affordable to households be an important factor for community revitalization. earning up to 60% AMI For many states and local governments, HOME is the only reliable stream of affordable housing development funds available. HOME funds are awarded annually from the U.S. Department of Housing and Urban Development (HUD) as grants to participating jurisdictions such as the City of Portland. Portland has been a participating jurisdiction in the HUD HOME Program since its inception in 1992. Prior to 2009, Portland received an annual allocation of HUD HOME funds but other communities of Cumberland County did not. The creation of the Portland/Cumberland County HUD HOME Consortium in 2009 brought additional funding for affordable housing activities into the region. Figure 20: HOME Funding by Fiscal Year (2012-2025) 2024-2025 $325,050 $514,873 2023-2024 $401,411 $635,826 2022-2023 $414,352 $656,325 2021-2022 $383,780 $607,899 2020-2021 $407,611 $645,647 2019-2020 $395,008 $625,685 2018-2019 $445,712 $705,998 2017-2018 $319,219 $505,637 2016-2017 $322,232 $510,410 2015-2016 $347,236 $473,597 2014-2015 $369,837 $543,341 2013-2014 $350,937 $515,216 2012-2013 $365,313 $533,230 Cumberland County Portland 21 Page 56 Table 6: Portland HOME Funding by Project by Appropriation Year (2014-2024) Total Low-/ Moderate- HOME Project Address/Name Project Type Year Units Income Units Funding Thomas Heights New Construction 2014 18 18 $522,448 Bayside Anchor New Construction 2015 45 45 $500,000 Rosa True Apartments Rehabilitation 2015 10 10 $149,500 548 St. John Street Rehabilitation 2016 4 4 $75,000 Motherhouse Rehabilitation 2017 88 66 $627,223 178 Kennebec Street New Construction 2018 51 40 $370,000 63 Front Street New Construction 2018 45 45 $204,070 37 Front Street New Construction 2018 60 60 $306,104 Deering Place Rehab/New Construction 2018 75 45 $500,000 58 Boyd Street New Construction 2018 55 44 $200,000 155 Danforth New Construction 2019 30 30 $299,999 83 Middle Street New Construction 2019 45 45 $449,066 577 Washington Avenue Rehabilitation 2020 100 100 $400,000 91 Winter Street New Construction 2021 52 52 $200,000 73 Winter Street New Construction 2021 43 43 $400,000 Riverton Park Rehab/New Construction 2023 182 182 $589,897 186 Woodford Street New Construction 2024 51 51 $294,489 Total 954 871 $6,087,796 Cumberland County HOME Consortium. CUMBERLAND COUNTY HOME CONSORTIUM Portland and Cumberland County have formed a AT A GLANCE HOME Consortium to receive an annual allocation of HOME Investment Partnership funds through $3.5 million Total investment (2009-2024) HUD. The HOME funds are used for the creation 640 Housing units under construction, of affordable housing development throughout rehabilitated, and/or created from Cumberland County, but outside of Portland. 2009-2024 614 Low and moderate-income units $5,540 Average contribution per unit 22 Page 57  Table 7: Cumberland County HOME Consortium Funding by Project (Inception-2023) Low-/ Moderate- Total Income HOME Owner/Project Name Community Project Type Year Units Units Funding Oak Leaf 2 Freeport New Construction 2011 25 25 $ 118,994 Sandy Creek Bridgton Rehabilitation 2013 20 20 $ 125,000 Steeple Square Westbrook Rehabilitation 2014 73 73 $ 173,650 Bartlett Woods Yarmouth New Construction 2015 28 28 $ 162,236 Blackstone Falmouth Rehabilitation 2016 39 39 $ 123,125 Apartments Larrabee Commons/Dr. Berry Westbrook New Construction 2017 38 38 $ 220,000 Apartments Riverview Terrace & Westbrook Rehabilitation 2017 83 83 $ 240,000 Larrabee Woods Larrabee Heights/Harnois Westbrook New Construction 2018 61 61 $ 100,000 Apartments West End Phase I South Portland New Construction 2018 64 50 $ 246,046 West End Phase II South Portland New Construction 2019 52 40 $ 423,225 16 Hancock Street Gray New Construction 2020 26 26 $ 199,000 15 Harrison Road Bridgton New Construction 2020 48 48 $ 150,000 Village Crossing Scarborough New Construction 2021 31 31 $ 400,000 Betsy Ross Crossing South Portland New Construction 2023 52 52 $ 864,906 County Totals 640 614 $3,546,182 B. LOCAL REVENUE SOURCES Jill C. Duson Housing Trust Fund. The Jill C. 2024 JILL C. DUSON HOUSING TRUST FUND Duson Housing Trust Fund was established to promote, retain, and create an adequate supply of $6,056,387 Total deposited in 2024 housing, particularly affordable housing, for very $2,377,511 Total allocated for spending in low, low, and median-income households. The 2024 Housing Trust Fund is an important source of funding towards the creation of housing that is not eligible for funding from other funding sources such as HOME or the Low Income Housing Tax Credit program (LIHTC), the creation of housing for “missing middle” households, and creating other types of housing such as cooperative housing. 23 Page 58 Table 8: Jill C. Duson Housing Trust Fund Contributions (Inception-2024) Year Source Type Amount 2002/03 Maine Medical Center Housing Replacement $315,580 2002 Sportsman's Grill Housing Replacement $40,000 2009 Berlin City Auto Housing Replacement $116,000 2010 Stop 'n' Shop Housing Replacement $289,250 2012 Rockbridge/Eastland Park Housing Replacement $42,500 2012 Riverwalk/Ocean Gateway Housing Replacement $250,000 2012 118 Congress LLC Easement Fee $3,500 2017 91 & 97 Belfort Street Sale of Tax-Acquired Property $86,424 2017 116 Upper A Street Sale of Tax-Acquired Property $78,527 2017 443 Congress Street Inclusionary Zoning $280,000 2018 62 India Street Inclusionary Zoning $276,500 2018 Short Term Rental fees Short-Term Rental Fees $33,139 2018 0 Thames Street sale Sale of City-Owned Property $1,000,000 2019 20 Thames Street Inclusionary Zoning $270,000 2019 20 Thames Street Easement Fee $7,500 2019 17 Sumac Street) Sale of Tax-Acquired Property $79,618 2019 Short Term Rental fees Short-Term Rental Fees $176,118 2019 Short Term Rental penalty fee Penalty Fee $15,200 2020 Short Term Rental penalty fee Penalty Fee $7,700 2019 56 Hampshire Street Easement Fee $12,123 2019 121 Middle Street Hotel Inclusionary Zoning $41,866 2020 99 Capisic Street Sale of Tax-Acquired Property $163,169 2020 Short Term Rental fees Short-Term Rental Fees $122,965 2020 22 Bramhall Street Easement Fee $3,799 2020 50 Monument Square Inclusionary Zoning $222,789 2020 121 Middle Street Hotel Inclusionary Zoning $30,448 2020 Council Order 89 20/21 Appropriation $500,000 202156 Hampshire Inclusionary Zoning $198,928 202140 Free Street Inclusionary Zoning $10,609 20211 Center Street Hotel Inclusionary Zoning $513,810 2021Short Term Rental Fees Short Term Rental Fees $109,681 2021Newell Street Sale of Tax-Acquired Property $900 202110 Hammond Street Inclusionary Zoning $169,744 202122 Hope Avenue Inclusionary Zoning $150,000 2022 5 India Street Inclusionary Zoning $261,086 2022 18 Luther Street Loan Repayment $36,000 2022 Short Term Rental fees Short-Term Rental Fees $79,460 2022 City Manager Appropriation Appropriation $250,000 2022 Newell Street Sale of Tax-Acquired Property $8,100 2022 Stroudwater Development Inclusionary Zoning $16,234 2022 75 Chestnut Street Inclusionary Zoning $587,444 24 Page 59 Table 8: Jill C. Duson Housing Trust Fund Contributions (Inception-2024) (continued) Year Source Type Amount 2022 754 Congress Street Hotel Inclusionary Zoning $182,688 2023 Short Term Rental fees Short-Term Rental Fees $129,378 2023 218 Washington Avenue Inclusionary Zoning $461,250 2024 178 Middle Street Hotel Inclusionary Zoning $86,602 2024 387 Commercial Street Inclusionary Zoning $707,130 2024 Short Term Rental fees Short-Term Rental Fees $112,522 2024 54 York Street Hotel Inclusionary Zoning $65,562 2024 126 North Street Inclusionary Zoning $21,757 2024 General Fund Allocation General Fund Allocation $4,880,126 Previous Interest Earned Interest $51,556 Total Deposits $13,555,281 Table 9: Use of the Jill C. Duson Housing Trust Fund (Inception-2024) Year Expenditure Amount 2011 Avesta Oak Street Lofts -$380,585 2014 Housing First Pre-Development Request for Proposal -$75,000 2015 65 Hanover & 52 Alder Streets Feasibility Study -$9,250 2017 65 Munjoy Street -$175,000 2019 60 Parris Down Payment Assistance -$24,000 2019 977 Brighton Avenue -$300,000 2020 Affordable Rental Housing Incentive -$1,000 2021 18 Luther Street -$36,000 2022 200 Valley Street -$442,386 2022 37 Front Street -$499,500 2023 155 Danforth Street -$135,000 2023 37 Front Street -$55,500 2023 83 Middle Street -$136,734 2023 63 Front Street -$333,000 2023 200 Valley Street -$49,154 2023 Riverton Park (Allocated- Not Yet Spent) -$910,103 2023 Dougherty Condos (Allocated- Not Yet Spent) -$1,500,000 2024 155 Danforth Street -$15,000 2024 45 Dougherty Court -$1,175,885 2024 45 Dougherty Court -$24,115 2024 63 Front Street -$37,000 2024 202 Woodford Street (Allocated- Not Yet Spent) -$492,000 2024 186 Woodford Street (Allocated- Not Yet Spent) -$155,511 2024 70 East Oxford Street (COMB Block) (Allocated- Not Yet Spent) -$650,000 2024 337 Cumberland Avenue (Allocated- Not Yet Spent) -$1,080,000 Total Spent or Allocated -$8,691,723 25 Page 60 Inclusionary Zoning Fee-In-Lieu. In October 2015, 2024 INCLUSIONARY ZONING FEES IN-LIEU the City Council approved amendments to the City's zoning ordinance to mandate inclusionary zoning of $577,066 Approved fee-in-lieu payment for ten percent of the units as workforce units within all workforce housing units residential development projects of ten or more $1,304,376 Approved fee-in-lieu payments units. With the adoption of the Green New Deal, for hotel twenty-five percent of the units in a qualifying $728,887 Fee-in-lieu payments received in project are now set-aside as workforce units. The for workforce housing Green New Deal applied to all residential $334,852 Fee-in-lieu payments received for development projects that had not received hotels workshop review by the Planning Board as of December 6, 2020. As an alternative to providing workforce housing units, developers of residential housing that triggers inclusionary zoning may pay fee-in lieu for some or all of the workforce units not created on-site. The 2024 fee was $177,559 per unit. In 2019, the City proposed and established a hotel inclusionary zoning ordinance. The requirement applies to hotel projects with 10 or more rooms and any hotel expansions of 10 or more rooms within any five-year period. To meet the requirement, hotel projects can provide one unit of low-income housing for rent within the city for every 28 hotel rooms. The other alternative is for a hotel project to pay a linkage fee (fee-in-lieu). The 2024 hotel fee-in-lieu was $4,692 per guest room. The workforce housing fee-in-lieu payments are paid and deposited into the Jill C. Duson Housing Trust Fund when the certificate of occupancy is issued, which typically occurs at the time tenants or homeowners move into a building. Hotel fee-in-lieu payments are also paid and deposited when the certificate of occupancy is issued. The Planning Board approves the fee-in-lieu payments, which may occur months or years prior to the actual payment deposit. The time from approval to deposit is an expected delay. For that reason, approved fees are not included in the Housing Trust balance until the fee is actually received. Table 10: Inclusionary Zoning Fee-in-lieu Approved by the Planning Board (2024) Address Status Units Type IZ Units Fee-in-lieu 246 Eastern Promenade Approved 13 Ownership - $577,066 Table 11: Hotel Inclusionary Zoning Fee-in-lieu Approved by the Planning Board (2024) Address Status Rooms Type IZ Units Fee-in-lieu 1060 Westbrook Street Approved 119 Hotel - $558,348 245 Commercial Street Approved 52 Hotel - $243,984 465 Congress Street Approved 92 Hotel - $431,664 215 Commercial Street Approved 15 Hotel - $70,380 Total $1,304,376 26 Page 61 Table 12: Inclusionary Zoning Fee-in-Lieu Payments Received (Inception-2024) Address Year Paid Units Type IZ Units Fee-in-lieu 443 Congress Street 2017 28 Rental - $280,000 62 India Street 2018 29 Ownership - $276,500 20 Thames Street 2019 27 Ownership - $270,000 50 Monument Square 2020 21 Rental - $222,789 40 Free Street 2021 51 Rental 5 $10,609 56 Hampshire Street 2021 29 Rental 1 $198,928 10 Hammond Street 2021 16 Ownership - $169,744 22 Hope Avenue Subdivision 2021 16 Ownership - $150,000 5 India Street 2022 24 Rental - $261,086 1700 Westbrook Street (Phase 2) 2022 41 Ownership 4 $16,234 75 Chestnut Street 2022 54 Ownership - $587,444 218-220 Washington Avenue 2023 45 Ownership - $461,250 387 Commercial Street 2024 64 Ownership - $707,130 126 North Street 2024 6 Rental 1 $21,757 Total $3,633,471 Table 13: Hotel Inclusionary Zoning Fee-in-Lieu Payments Received (Inception-2024) Address Year Paid Rooms Fee-in-lieu 121 Middle Street (2nd and 3rd floors) 2019 & 2020 19 $72,314 1 Center Street (Canopy by Hilton) 2021 135 $513,810 178-184 Middle Street (Docent’s Collection) 2024 19 $86,602 754 Congress Street (Longfellow Hotel) 2024 48 $182,688 54 York Street (The Weldon Hotel) 2024 14 $65,562 Total $920,976 C. AFFORDABLE HOUSING TAX INCREMENT FINANCING (TIF) The Affordable Housing Tax Increment Financing (AHTIF) Program offers municipalities a flexible financing tool to assist affordable housing projects and support related infrastructure and facilities by designating a specific area as an affordable housing development district and adopting an affordable housing development program for the district. AHTIF enables communities to use a percentage of the new property taxes generated from the affordable housing district to help make the housing affordable and to pay for related costs. Communities using AHTIF also avoid the decreases in state revenue-sharing and state education subsidy and increases in county taxes that otherwise would occur with increased property values from the AHTIF district. Maine law requires municipalities to apply to MaineHousing for review of the district and development program approved by the municipality to ensure compliance with the conditions set out in the AHTIF statute. Municipalities may designate up to two percent of their land in an AHTIF district. Per State statue, rental units must be maintained as affordable for a minimum of 30 years and homeownership units must remain affordable for a minimum of 10 years. The City’s local TIF Policy requires that the affordability requirements remain in place for the full term of the Affordable Housing Tax Increment Financing district. 27 Page 62  Figure 21: Affordable Housing Tax Increment Finance Districts in Portland 186 Woodford Street 51 affordable apartments 70 East Oxford Street 55 apartments (50 affordable) 202 Woodford Street 46 age-restricted affordable apartments Legend 42 Atlantic Street 2024 Affordable Housing TIFs 30 affordable apartments Pre-2024 Affordable Housing TIFs 28 Page 63 5. 2024 SUBSIDIZED HOUSING DEVELOPMENT Table 14: Subsidized Housing Development in Portland (2000-2024 by year of subsidy approval) Owner/Project Year Units HOME HDF CDBG HTF TIF NSP Unity Village/Bayside 2000 33 $86,500 $0 $363,863 $0 $0 $0 Island View Apartments 2001 70 $71,015 $192,639 $136,346 $0 $0 $0 St. Dominic's 2002 12 $0 $436,500 $0 $0 $0 $0 Brannigan House 2002 10 $93,000 $0 $0 $0 $0 $0 Wellesley Estates 2002 45 $0 $256,000 $0 $0 $0 $0 Logan Place 2003 30 $435,000 $0 $0 $0 $0 $0 Yale Court 2002 30 $150,000 $200,000 $0 $0 $0 $0 Peninsula Community I 2003 12 $300,000 $0 $0 $0 $0 $0 Peninsula Community II 2004 16 $307,700 $0 $0 $0 $0 $0 IRIS Park Apartments 2004 30 $0 $250,000 $0 $0 $0 $0 Fay Garman House 2004 12 $150,000 $0 $0 $0 $0 $0 Peninsula Community III 2005 10 $200,000 $0 $0 $0 $0 $0 Walker Terrace 2004 40 $382,000 $220,000 $0 $0 $0 $0 Fore River 2006 20 $388,474 $0 $0 $0 $0 $0 Valley Apartments 2006 24 $320,000 $0 $0 $0 $0 $0 Pearl Place I Apartments 2007 60 $427,000 $0 $0 $0 $615,502 $0 Bayside East 2007 20 $250,000 $0 $0 $0 $0 $0 53 Danforth Street 2008 43 $325,000 $0 $0 $0 $0 $0 Florence House 2008 25 $240,000 $0 $0 $0 $0 $0 Oak Street Lofts 2011 37 $0 $0 $0 $380,585 $0 $0 Pearl Place II Apartments 2011 54 $400,000 $0 $0 $0 $0 $0 Elm Terrace 2011 38 $403,795 $0 $0 $0 $0 $0 409 Cumberland Avenue 2013 57 $500,000 $0 $0 $0 $759,392 $0 Adams School 2013 16 $0 $0 $0 $0 $0 $1,710,000 Thomas Heights 2014 18 $522,448 $0 $0 $0 $207,116 $0 Bayside Anchor 2015 45 $500,000 $0 $0 $0 $0 $0 17 Carleton Street 2015 37 $0 $0 $0 $0 $726,000 $0 Rosa True School 2015 10 $149,500 $0 $0 $0 $0 $0 548 St. John Street 2016 4 $75,000 $0 $0 $0 $0 $0 Motherhouse 2017 88 $627,223 $0 $0 $0 $0 $0 65 Munjoy Street 2017 8 $0 $0 $0 $175,000 $0 $0 58 Boyd Street 2018 55 $200,000 $0 $30,000 $0 $2,144,566 $0 977 Brighton Avenue 2018 40 $0 $0 $0 $300,000 $1,954,486 $0 Deering Place 2018 75 $500,000 $0 $0 $0 $4,185,757 $0 37 Front Street 2018 60 $306,104 $0 $250,000 $555,000 $6,056,916 $0 63 Front Street 2018 45 $204,070 $0 $0 $370,000 $0 $0 178 Kennebec Street 2018 51 $370,000 $0 $0 $0 $2,889,164 $0 83 Middle Street 2019 45 $499,066 $0 $200,000 $136,734 $1,559,287 $0 66 State Street 2019 38 $0 $0 $0 $0 $2,672,169 $0 155 Danforth Street 2019 30 $299,999 $0 $0 $150,000 $0 $0 18 Luther Street 2019 2 $0 $0 $0 $36,000 $0 $0 200 Valley Avenue 2020 60 $0 $0 $0 $491,540 $4,092,269 $0 577 Washington Avenue 2020 100 $400,000 $0 $184,150 $0 $3,809,991 $0 104 Grant Street 2020 23 $0 $0 $0 $0 $2,749,457 $0 73 Winter Street 2021 43 $400,000 $0 $0 $0 $1,337,426 $0 91 Winter Street 2021 52 $200,000 $0 $0 $0 $1,473,978 $0 45 Dougherty Court 2022 63 $0 $0 $0 $1,200,000 $2,329,683 $0 25 Casco Street 2023 54 $0 $0 $0 $0 $2,836,087 $0 Riverton Park 2023 182 $589,897 $0 $0 $910,103 $3,459,750 $0 Lambert Woods North 2023 72 $0 $0 $0 $0 $3,705,106 $0 Dougherty Commons 2023 20 $0 $0 $0 $1,500,000 $0 $0 70 East Oxford Street 2024 55 $0 $0 $0 $650,000 $3,149,733 $0 202 Woodford Street 2024 46 $0 $0 $0 $492,000 $2,214,620 $0 186 Woodford Street 2024 51 $294,489 $0 $0 $155,511 $2,307,595 $0 337 Cumberland Avenue 2024 60 $0 $0 $0 $1,080,000 $2,868,063 $0 42 Atlantic Street 2024 30 $0 $0 $0 $0 $1,372,473 $0 Total 2,306 $11,567,280 $1,555,139 $1,164,359 $8,582,473 $61,476,585 $1,710,000 29 Page 64 XX 202 Woodford Street Community Housing of Maine (CHOM) will partially demolish and rebuild/renovate the existing Woodfords Congregational Church Parish House into 46 units of studio and one-bedroom apartments for seniors. 18 of the units will be affordable for households earning up to 60% AMI while the remaining 28 units are affordable for households earning up to 50% AMI. 10% of the units will be set aside for individuals residing in a Portland shelter. The new apartments will be fully electric, and utilize no fossil fuels. Amenities include a laundry room. See Table 16 for affordability rates at 50% and 60% of the area median income (AMI). Image Source: CWS Architecture 30 Page 65 186 Woodford Street Community Housing of Maine (CHOM) will build a new four-story, elevator-assisted building with 51 affordable studio and one-bedroom apartments for households earning up to 60% of the area median income (AMI) in the current Woodfords Congregational Church parking lot. 10% of the units will be set aside for individuals residing in a Portland shelter. The new apartments would be fully electric, and utilize no fossil fuels. Amenities include three laundry rooms and a lounge. See Table 16 for affordability rates at 60% of the area median income (AMI). Image Source: Community Housing of Maine 31 Page 66 70 East Oxford Street will be a new six-story building with 50 affordable and 5 market rate apartments. 33 of the units will be affordable to households earning up to 50% AMI, and 17 of the units will be affordable to households earning up to 60% AMI. 20% of units will be available for persons residing in a Portland shelter. The building will offer five (5) studio, fifteen (15) one-bedroom, sixteen (16) two-bedroom, and nineteen (19) three-bedroom apartments. See Table 16 for affordability rates at 60% and 50% of the area median income (AMI). Image Source: Ryan Senatore Architecture 32 Page 67 337 Cumberland Avenue will be a six story, 60-unit building with affordable and market rate apartments. 29 apartments will be affordable for households earning up to 50% AMI, 19 apartments will be affordable for households earning up to 60% AMI, and 12 apartments will be at market rate. The four upper floors will be comprised of 4 studio apartments, 24 one-bedroom apartments, 22 two-bedroom apartments, and 10 three-bedroom apartments. The first floor will be dedicated to childcare services. Amenities include laundry facilities, storage related to biking and other human powered uses, a community room, fitness area, lobby, trash room, a community meeting area, and a site office. See Table 16 for affordability rates at 60% and 50% of the area median income (AMI). Image Source: Youth and Family Outreach 33 Page 68 6. 2024 WORKFORCE HOUSING DEVELOPMENT 509 Forest Avenue (Rumery Lofts) is currently under construction with an anticipated lease-up date of June 2025. This three story renovation project will provide 38 new apartments including 10 workforce housing units on the second and third floors with first floor commercial space. 3 studio, 1 one-bedroom, and 6 two-bedroom units will be available for households and individuals earning up to 80% of the area median income (AMI). See Table 16 for affordability rates at 80% of the area median income (AMI). Image Source: Invivid Architecture 34 Page 69 482 Congress Street will renovate office space on the second through fifth floors into 39 apartments including 10 workforce housing units. Of the 14 one-bedroom and 25 two-bedroom units, 10 one-bedroom units would be available for households earning up to 80% of the area median income. See Table 16 for affordability rates at 80% of the area median income (AMI). Image Source: Zillow 35 Page 70 977 Forest: 8 Units 997 Forest: 13 units 985 Forest Avenue received Planning Board approval to legalize 18 existing residential units, located within five condominiums, into compliance with current building and life safety code requirements, and land use regulations. After renovation, 997 Forest Avenue will contain 13 apartments, and 977 Forest will contain 8 apartments totaling 17 one-bedroom, 3 two-bedroom, and 1 three-bedroom units. Five of the units will be deed restricted to remain affordable for households earning up to 80% of the area median income (AMI). See Table 16 for affordability rates at 80% of the area median income (AMI). Image Source: Google Street View 36 Page 71 7. INCOME AND RENTAL DATA A. 2025 INCOME & RENT LIMITS HUD AFFORDABILITY AT A GLANCE The U.S Department of Housing and Urban Development (HUD) computes income limits for HUD describes households in the 30% AMI Portland based on local Area Median Income (AMI) bracket as extremely low-income (Table 16). Portland applies HUD’s income limits to households determine and monitor household eligibility with the City’s inclusionary zoning and affordable 80% AMI households are described as low- housing programs. income households HUD measure of housing affordability is Table 17 presents the maximum rent limits (which spending 30% or less of gross monthly includes rent plus utilities) broken down by income towards housing expense household size and area median income levels. Table 15: 2025 Income Limits - Portland HUD Metro Fair Market Rent Area Household Size AMI Studio 1 2 3 4 5 30% $23,400 $27,300 $31,200 $35,100 $38,950 $42,100 50% $38,950 $45,450 $51,950 $58,450 $64,900 $70,100 60% $46,750 $54,500 $62,350 $70,150 $77,900 $84,150 80% $62,350 $72,700 $83,100 $93,500 $103,850 $112,200 100% $77,900 $90,900 $103,850 $116,850 $129,800 $140,200 120% $93,450 $109,050 $124,600 $140,200 $155,750 $168,250 Table 16: 2025 Maximum Rent Limits – Portland HUD Metro Fair Market Rent Area Bedroom Count AMI Studio 1 2 3 4 5 30% $585 $682 $780 $877 $973 $1,052 50% $973 $1,136 $1,298 $1,461 $1,622 $1,752 60% $1,168 $1,362 $1,558 $1,753 $1,947 $2,103 80% $1,558 $1,817 $2,077 $2,337 $2,596 $2,805 100% $1,947 $2,272 $2,596 $2,921 $3,245 $3,505 37 Page 72 8. MONITORING Monitoring is an ongoing responsibility of the City to ensure compliance with program regulations, applicable federal and local statutes, grant requirements, and terms and conditions of grant awards. Monitoring requirements vary based on the type of housing (workforce housing versus affordable housing), and the type of funding in the project. A. WORKFORCE HOUSING Since adoption in October 2015, inclusionary zoning has required the creation of workforce units (rental or ownership) or a fee-in-lieu payment for projects with ten or more dwelling units. Monitoring of inclusionary zoning commences during the review of certificates of occupancy. Projects that provide workforce units establish a workforce housing agreement with the City requiring workforce units and unit features be comparable to market-rate units. The agreement is then filed as part of the property deed. Projects that choose to provide a fee-in-lieu pay the annually adjusted inclusionary zoning fee (per unit or partial unit) into the Jill C. Duson Housing Trust Fund at time of issuance of a certificate of occupancy. As of 2024, a total of 145 workforce units have been created and are being monitored by the City. For rental housing, staff works with property managers to set maximum rent and income limits (provided annually by the US Department of Housing and Urban Development (HUD) guidelines based on bedroom size). Before a tenant may lease a workforce unit, or renew their lease, they must be income-qualified by the City of Portland. Income qualification requires the completion of the Income Verification Form, forwarding two recent pay stubs (or similar documents), and a copy of the lease agreement. After receipt of these documents, staff reviews and confirms if the tenant(s) income qualifies and confirm the amount of the monthly rent within the lease. For workforce homeownership projects, staff works with the developer to determine the maximum sale price of each workforce unit. The maximum sale price calculation consists of the mortgage payment, less real estate taxes, less mortgage insurance, less condo fees, less homeowner's insurance, less utilities. During the resale of a unit, staff recalculates the maximum sale price for the seller. As with rental units, each household is income-qualified to ensure compliance with income guidelines. B. HOME Affordable housing projects that receive HOME funding are required to be monitored by the City to ensure compliance with regulations established by the U.S. Department of Housing and Urban Development (HUD). Monitoring includes confirming the number and type of HOME-assisted units, confirming units are leased to households at or below the HOME income limits for their household size, ensuring the rents plus tenant-paid utilities do not exceed rent limits, ensuring utility costs are accurate, and ensuring exceptions are only allowed when households also receive project-based vouchers. Additionally, the City has a memorandum of agreement with MaineHousing, to provide annual on-site property inspections, which is another HOME program requirement. The total number of households requiring annual HOME monitoring has grown from two households in 2000 to 146 households in 2024. 38 Page 73 C. HOUSING TRUST FUND AND AFFORDABLE HOUSING TAX INCREMENT FINANCING UNITS Though not as extensive as the monitoring required for HOME units, affordable housing projects that receive Housing Trust Funds and/or Affordable Housing Tax Increment Financing (TIF) are also required to be monitored by the City to ensure compliance with income and rent limits. Compliance for rental units includes ensuring units are leased to households at or below set income limits for their household size, and ensuring the rents plus tenant-paid utilities do not exceed rent limits. For homeownership units, potential homebuyers are also required to establish income eligibility. From 2011 to 2024, 16 residential housing projects were approved for a subsidy from the Housing Trust Fund equaling a total of 779 households requiring annual monitoring to ensure units are occupied by households that earn at or below the agreed-upon area median income, and the maximum sale price or rent is restricted in a similar manner. From 2007 to 2024, 25 residential housing projects with 1,437 households received Affordable Housing Tax Increment Financing (AHTIF). At least 33% of the units in these projects are required to be monitored annually to ensure units are occupied by households that earn at or below the agreed-upon area median income and the rent is similarly restricted. To compete for limited 9% federal Low Income Housing Tax Credit (LIHTC) subsidy funding, developers are more frequently requesting AHTIFs to ensure success in the scoring process within their subsidy funding requests. 39 Page 74