This information was put together from a variety of sources, including other affordable housing organizations Maine State Housing, Housing and Urban Development (HUD) and the Maine State Board of Realtors.
1) Who is Home Start?
2) What is your definition of affordable housing?
3) Why do we need affordable housing on Peaks Island?
4) What is the trend when looking at affordable housing in other communities in the State?
5) Does grant money force you to go beyond Peaks Island for renters/owners?
6) Is Home Start being driven by community needs or by funding sources?
7) Where do the income criteria (to qualify for affordable housing) originate?
8) Does Home Start have to build?
9) Is there anything specifically in your mission for home ownership?
10) PILP is dedicated to preserving open space. Would you consider making that a part of your mission?
11) Is there a cost number for an affordable house?
12) On Monhegan, house prices were so high it became necessary to find affordable housing so lobstermen and fishermen could continue to work there. What is your purpose for finding affordable housing since most people have to work in Portland?
13) Have you been watching for the availability of affordable housing in the Peaks real estate market?
14) What is your pre-approval process? Who would be eligible? Can we put together a process for people to approach Home Start? What if thereís no one who can qualify?
15) What are the specifics on grants you have already researched/received, including amounts, stipulations, etc.?
16) Is there an advantage to selling your house to an affordable housing non-profit? Could you approach the seller?
17) Are you trying to create home owners or a stock of affordable housing?
18) How will you identify community needs?
19) Why do people need to be identified as ìaffordable housing peopleî?
20) Does the existence of the Peaks Island Council (PIC) change how non-profits communicate with Portland?
21) How far is Home Start willing to go (at the meeting on the 29th) in making commitments regarding what you will and wonít do (such as building houses where they arenít wanted)?
22) Suggestions we have been given
Who is Home Start
Home Start is an all-volunteer organization of Peaks Islanders concerned about the future of our island home. One of the things that make our community so wonderful is the economic diversity of our year-round population. Home Start was established to try to maintain the diversity and therefore the future sustainability of our island through providing affordable housing options.
By bringing together community support, state and federal grants, low-interest loans, and thousands of volunteer hours, Home Start hopes to be able to create stable, permanently affordable homes for Peaks Island families and individuals who are unable to buy a home on the private market because of a lack of income.
How would it work? Home Start hopes to acquire property through funds from grants and donations of cash and land from individuals. Any existing homes would be renovated and with acquired land, Home Start would design and build homes to meet the needs of pre-qualified applicants. Our intent in design and construction is to follow green building guidelines.
Applicants could earn no more than 80% of the median income for Portland. There will also be asset limits and residency and community requirements that will be determined by a committee made up of board members and interested community members.
What is your definition of “affordable housing”?
Home Start follows the commonly accepted guideline for housing affordability, and that is housing costs that do not exceed 30% of a household's gross income. Housing costs considered in this guideline generally include taxes and insurance for owners, and usually include utility costs. When the monthly carrying costs of a home exceed 30-35% of household income, then the housing is considered unaffordable for that household.
Why do we need affordable housing on Peaks Island?
The housing costs in desirable locations are affected by the laws of supply and demand. The most "affordable" places are those where there is the least demand relative to supply, but where the supply of available housing is less than the demand, low- and moderate-income households often struggle to obtain housing that is affordable.
Measuring the demand for homes is complicated. A few islands have done Housing Needs Assessments. Usually, the islands hire a group to look at the census data, and to do a comprehensive survey of year-round and summer residents and also a cross-section of population off-island that might be interested in moving to the islands. The current housing stock is also examined as well as the islandís real estate trends. Home Start applied for funds to attempt to have a needs assessment done this year, but the funds had run out. Our belief in the need for affordable housing stems from the trends that are occurring on the other Maine Islands, the city of Portland, as well as the country as a whole. Desirable communities, particularly along the coast of Maine are becoming less affordable for working class members of the community. We see this on Peaks Island where the housing market and rising land values have outpaced lower to middle class incomes. We have a limited supply of residential land, and a number of regulations that make it difficult or costly to increase housing supply at prices and rents affordable to consumers at income ranges below the Portland median income.
We believe that Peaks Island has not yet reached an unaffordable threshold where no new middle class families can afford to move here, however, this has been the trend in desirable communities all over the country and we see the signs of this here in our own community. Home Start is attempting to be proactive and taking steps to preserve the economic diversity of our community while we still have the opportunity.
We have received many comments about the general unaffordability of Peaks Island, and the foolishness of trying to create housing opportunities when there are so many other affordability issues facing islanders.
Our answer is that we live in a beautiful location with a great school, a wonderful community and easy access to the largest city in Maine. We believe that Peaks Island is a special community, with economic and social diversity and to preserve that we want to create opportunities for people at all income levels to be able to call Peaks Island home permanently. You cannot easily separate out affordability of the island as a whole from affordable housing. But without first having affordable housing the island will never be affordable to families. Our goal is to help families and individuals afford to live on Peaks Island while spending no more then 30% of their gross income on housing. We are looking to first help families already on the island who may need housing. These families should be aware of the additional costs to living on an island, and will be able to weigh the costs vs. the benefits.
What is the trend when looking at affordable housing in other communities in the State?
When looking specifically at the other island communities, the trend has been towards new construction, whether that is construction that is owner initiated or organization initiated. There are a few islands that have attempted rehabilitation; i.e. Chebeague Island and Monhegan Island. However, the preference for most of the islands has been for new construction as the most affordable way to provide secure and affordable housing with the limited resources available.
Does the grant money force you to go beyond Peaks Island for renters/owners?
No. We are not forced to go beyond Peaks Island. Our mission is to first target the housing needs of year-round moderate-income Peaks Islanders.
Is Home Start being driven by community needs or by funding sources?
This paragraph was taken directly out of our Peaks Island neighborhood plan:
Year-round residents are now older and the number of people per household has decreased as has the Islandís school population. All agree that the high cost of living and lack of affordable housing are the root of this phenomenon. Portland's severe housing shortage is exacerbated on Peaks Island. The Island's historic and architectural resources are at extreme risk from development. The plan also urges equitable alternatives to the real estate-based property tax system that has become especially onerous to coastal residents.
We operate out of a community mandate from the neighborhood plan, and the organization was reinvigorated after the concerns expressed during "Peaks Island Today and Tomorrow". A platform of concern for affordable housing and island affordability in general was what 6 of our 7 Island Councilors ran on. Affordability has long been on the minds of Peaks Islanders. Our organizationís mission is to do something about the lack of affordable housing. However, to do anything in an unaffordable real estate market there is the need for money. We are committed to seeking out funding sources to follow our mission. So the answer to the question is that we are mission driven first in a mission that was created out of an expressed Peaks Island need and community process, but we are committed to finding funding to carry out this mission, and some of this funding does come with some stipulations. However, we are committed to maintaining the character of Peaks Island and are seeking funding sources that will allow us to do this.
Where do the income criteria (to qualify for affordable housing) originate?
We are following the nationwide guidelines to provide housing for families at 80% of area median income (AMI). Any government funding will be tied to these numbers. This means that we will primarily be following the Portland Housing and Urban Development (HUD) numbers.
Some funding sources, like Maine State Housing Association (MSHA), provide funding for households earning up to 120% of area median income and so there is the possibility that at some point we may be able to provide housing for households from 60% of AMI, up to 120% of AMI.
Does Home Start have to build?
Home Start believes that building new homes on existing infrastructure is the most economical and affordable way to address the islands need. We have examined the experiences of other islands and other affordable housing groups around the state and country and many of them have found this to be the case. Here on Peaks Island, much of the existing stock of homes is in need of significant and expensive repairs, which would be a potential drain on a young familyís finances. We would like to build efficient, green homes on the island that will have less expensive utilities and therefore less costly to operate and maintain. That being said, our first project was the purchase and renovation of 18 Luther St, and we will continue to look into renovation as an option.
Is there anything specifically in your mission for home ownership?
Home Start Mission Statement:
To create and maintain affordable housing opportunities for residents of Peaks Island.
Home Start Guiding Principles:
- To help in the maintenance of Peaks Island as a vital and diverse year-round community through providing access to permanently affordable housing for current and future community members of modest income.
- To acquire or build properties for rent or for sale in an environmentally sensitive and socially responsible manner.
- To raise funds from private and public sources to underwrite our program.
PILP is dedicated to preserving open space. Would you consider making that a part of your mission?
Our mission is related to housing. See above. While preserving open space is not specifically in our mission, we recognize the value of open space for our entire community. We believe that a healthy, balanced community provides for both.
Is there a cost number for an affordable house?
There is not a set cost for an affordable house. Affordability is tied to a family's income. However, MSHA will not help families with homeownership purchases over $303,000 in Portland. HUD's housing program is tied to lower home purchase prices of $256,000. However, a family still needs to be able to qualify for a mortgage for these homes. We are hoping to provide affordable, energy efficient homeownership opportunities with green design features for island families of modest means. We are hoping to provide home ownership opportunities under $200,000.
On Monhegan, house prices were so high it became necessary to find affordable housing so lobstermen and fishermen could continue to work there. Whatís your purpose for finding affordable housing since most people have to work in Portland?
Our purpose is to maintain the sustainability of our year-round island population and community. We have a vital and diverse community made up of retired people, people who work in town, people who work from home, and people who work on the island. Living on any island can be challenging and expensive, but our community is what makes Peaks Island so special. We have just as many reasons as an isolated island like Monhegan to preserve it.
Have you been watching for the availability of affordable housing in the Peaks real estate market?
These are all of the houses in the last three years that have sold for under $300,000. The house in bold is 18 Luther St, the one house owned by Home Start.
Peaks Island Sales data for houses
Under $300,000 for 2005-2007
Date Sold List Price Sold Price
11/21/2007 $254,000 $215,000
11/21/2007 $259,900 $243,500
10/19/2007 $295,000 $275,000
10/12/2007 $235,000 $195,000
10/12/2007 $269,000 $245,000
9/10/2007 $289,000 $253,000
9/7/2007 $225,000 $215,000
7/2/2007 259,900 $250,000
5/11/2007 $199,000 $163,000
4/26/2007 $269,900 $249,000
3/15/2007 $217,500 $200,000
2/14/2007 $230,000 $210,000
10/27/2006 $289,000 $255,000
9/29/2006 $220,000 $203,000
8/23/2006 $244,000 $200,000
5/31/2006 $239,000 $229,500
4/24/2006 $287,900 $285,000
12/15/2005 $239,000 $210,000
5/16/2005 $284,000 $279,000
1/11/2005 $259,000 $254,000
What is your pre-approval process? Who would be eligible? Can we put together a process for people to approach Home Start? What if there's no one who can qualify?
We did have a process and a selection committee to find renters for our first two properties, but we will need to develop this process and criteria over time for homeownership opportunities. There are many working models on other Maine Islands for us to consider. We will need community input, and volunteers to help develop the appropriate model that makes sense for our community.
What are the specifics on grants you have already researched/received, including amounts, stipulations, etc.?
Grants awarded:
Genesis Foundation Maine Islands Challenge Grants- for acquisition on Elizabeth St.,
Island Institute Affordable Coast grants- for acquisition on Luther St.
METACH grant through CEI- For technical assistance from AVESTA
HomePort, City of Portland- renovation funds on 18 Luther St.
Is there an advantage to selling your house to an affordable housing non-profit? Couldn't you approach the seller?
Yes. This called a bargain sale of real estate. When someone sells property to a charity at a bargain price, the sale is separated into two different transactions, a sale, and a charitable contribution. The sale portion is subject to income tax on the sellerís share of the property's appreciation. The charitable contribution portion is entitled to a charitable contribution deduction. This amount for the charitable deduction is the difference between the fair market value of the property and the sale price. (Maine Board of Realtors)
Are you trying to create home owners or a stock of affordable housing?
Home Start is attempting to create homeowners through creating a stock of permanently affordable housing for islanders who are unable to qualify for a home otherwise. Home Start is not looking to interfere with the market. We believe that potential homeowners should buy homes at market value if they can afford it, however, we do not want to restrict our community to only those that can afford current home prices. And so we are looking to offer opportunities for these folks who wish to live on the island in a stable housing situation while building some equity.
How will you identify community needs?
We are working on putting together a way that people can approach Home Start comfortably to express their desire for housing.
Why do people need to be identified as affordable housing people?
The real problem is the stereotype that people hold about who people in need of affordable housing are. What is wrong with being identified as a person of modest means? There are many of us who fit this category and would qualify for a future Home Start home but we were fortunate to buy into the Market while homes were still with the reach of average working class families. However, some CLTs are pursuing models of buyer-initiated CLT homes, and in these cases people would not necessarily know families were buying a subsidized home. This is something that Home Start could look at in the future, if funding sources allow for it.
Does the existence of the Peaks Island Council (PIC) change how non-profits communicate with Portland?
The Island Council is new and everyone is figuring out the answer to this. The Peaks Island Council is an advisory committee bringing recommendations for island issues to the Portland City Council. We support the work of the Island Council and we are currently in dialogue with them, both to see how we can help as an organization and to see what role the PIC will play between Portland and non-profits. The Island Council has recently split into subcommittees and one of these was to address zoning and housing. We are hopeful that this means that the Island Council will take more direct action in preserving the affordability of housing on Peaks Island, and advocate the island case to the City Council.
Who is Avesta?
In Avesta's own words:
"For over thirty-five years, Avesta Housing has been driven by the vision that decent, affordable housing should be available to all Mainers, without exception. Avesta's mission is to promote and provide housing opportunities for Southern Maine people in need. Founded with a shoestring budget and a staff of three as York Cumberland Housing in 1972, Avesta is a tax-exempt 501(c)(3) organization that has grown to become one of the country's most innovative and respected leaders in affordable housing.
Avesta has developed over 1,500 affordable units serving seniors, families, and persons with special needs. It currently manages 1,300 apartments in 50 properties. In its development efforts, Avesta is sensitive to both the needs of the people who will live in its properties and to the communities where it is building. Avesta has earned a reputation for excellence by handling each project with compassion, conscientiousness, and the highest level of expertise. Avesta is led by a Board of Directors consisting of members drawn from a variety of banking, business, public, community, social service and housing organizations. Avesta maintains its administrative headquarters in Portland, Maine and has 67 employees."
On the suggestion and advice of the Genesis Community Loan Fund, Home Start approached Avesta looking to form a working partnership. We believe that they have the knowledge, staff, expertise and experience to help us, as an all-volunteer organization, navigate the complicated process of developing affordable housing homeownership opportunities on Peaks Island. A first draft contract was placed in the library binder and caused quite a bit of confusion, however, as yet, there is no concrete project and therefore no contract has been signed.
Suggestions we have been given
- Provide silent second mortgages to help keep families in their homes. No one would object to that.
This is a good idea, but outside the scope of our organizational mission or abilities. We do not have command of these types of resources. - Ask the community to donate time and materials to fix up housing.
This is a great idea, but it still requires the capital to initially purchase homes. We have had a much harder time finding funding to buy and renovate existing homes. However, this is what we have tried to do. We currently own 18 Luther St. and our working on fixing it up. We welcome volunteers to contact us. - To help with affordability on Peaks, you could subsidize school costs and boat passes for young families, and support the Children's Workshop.
This is a great idea. Many of us, individually, already do support the Children'ís workshop. However, something on this scale is outside our scope and abilities as a housing organization. However, we would support these efforts by other organizations. - Consider sustainability. How can decisions you make now be sustainable in the long term.
We are all aware that Peaks Island has a multi-faceted affordability challenge. Our island's long-term sustainability depends on all of these needs being addressed, but no one organization can be effective by trying to solve all of them at once. We need multiple groups working on diverse issues. This is why we are thankful for groups such as PILP and PITA who are already working on some of these issues. Providing families of diverse incomes the opportunity to stay on Peaks permanently is the need that we have been trying to address. Long-term sustainability is also the reason that we are looking at the CLT model. We are looking to provide a sustainable solution to a nationwide growing housing crisis here on Peaks Island in perpetuity. - Make energy efficiency and green objectives part of your goals.
This is included as one of our guiding principles. - Clarify your mission, your purpose and motivating goals. This will help garner community support.
We feel that our mission is clear, and we have tried to further clarify it by providing our guiding principles.