SCARBOROUGH — 3i Housing of Maine (3iHoME), in partnership with the Preservation of Affordable Housing (POAH), is asking the Scarborough Town Council to approve a credit enhancement agreement (CEA) in an existing Tax Increment Financing (TIF) district to build 51 affordable apartments in The Downs in Scarborough for people with mobility disabilities.

The apartments will be available to households with at least one member having a mobility disability. They will be designed for easy mobility with or without a wheelchair. Bathrooms, kitchens and all living areas will be barrier free and the entire building will be wired for adaptable environmental controls and smart home functionality, according to the 31HoME website.

POAH is requesting the CEA to “offset operating costs,” said Cory Fellows, vice president of Real Estate Development with POAH. The organization will also submit an application to Maine Housing asking for 9% in Low Income Housing Tax credits.

Karen D. Martin, executive director of Scarborough Economic Development Corporation (SEDCO), said , “the town is working on a possible credit enhancement agreement that would reimburse POAH, the company proposing to build and manage the 3iHoME project, for a portion of the property taxes that they pay. Essentially the Credit Enhancement says that 3iHoME must pay their property taxes to the town each year. The town agrees to give back a portion of those taxes that they pay in order to support this affordable housing project.”

Bryan J. Shumway, chairman of the Scarborough Housing Alliance, wrote a letter of support for the 3iHoME/POAH CEA request. “To be feasible, the proposal requires an allocation of competitive funds from Maine Housing: in today’s funding environment, the support of a local tax agreement is critical to receiving such funding. To this end, 31HoME/POAH has requested a CEA from the town of Scarborough,” he said.

The nonprofit developers are seeking a CEA, which is a financial mechanism that may be used within a TIF district to compensate a developer or business fully or partially for approved development project costs using Municipal Tax Increment Financing (TIF) funds. Tax Increment Financing is a flexible finance tool used by municipalities to leverage new property taxes generated by a specific project or projects within a defined geographic district.

The proposed building will be four stories and about 67,845 square feet, to be located  on a 1.3 acre lot at the corner of Downs Road and Market Street.

Fellows described the project as the first of its kind in Maine. When complete, the property will be a new model for people with disabilities to move through the world on their own rather than being in an institution.

“There will be 51 residential units, a community lounge, administrative and support services offices, as well as a mobility demonstration area for individuals to show off and innovate on assistive technologies,” Fellows said. “It’s not supportive housing or senior housing. It is to promote independent living to the extent the people may need help getting to doctor appointments” and more.

Eric Sanderson, assistant town planner, said “Since the project is an approved subdivision, the Downs team will need to meet its conditions of approval for the town center subdivision before any work can start. Additionally, 3I will have to meet its conditions of approval set by the planning board to receive a building permit before proceeding to construction.”

The project would create hundreds of new permanent and temporary jobs will result from the 3i HoME project, Fellows said, as well as over 200 short term jobs generated during the construction phase, Fellows said. Some of the positions included engineering positions, contractors, architects, plumbers, carpenters, custodians, property managers and more.

The plan includes ways to improve use for pedestrians with sidewalks and an open area that is for residents and the public,” Fellows said.

In addition, the project will have “Passive House,” which means no fossil fuels will be used in its mechanical systems. “The idea behind this energy efficiency is to promote inclusivity among all households, regardless of ability,” Fellows said.

Town Manager Thomas Hall wrote, “the result of the workshop is that there appeared to be general support by the town council to support this project and a recognition of the importance to show local support through a CEA. There are a number of options that will be considered before finalizing the CEA request. Formal action on this item is scheduled for Sept. 20.”

“The developer has a deadline of next month to submit a proposal for consideration with Maine Housing,” said Liam Gallagher, assistant town manager.

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