A development that will provide 24 affordable housing apartments for older residents of Indian Island will receive $2.1 million in financing from a California company.
Hunt Capital Partners said Wednesday that it closed on the money, which is in the form of federal low-income housing tax credit equity financing. Hunt specializes in the syndication of federal and state low-income housing, historic and solar tax credits.
The money will go toward the construction of Penobscot Elder Homes on Indian Island, which is within the Penobscot Nation Reservation. The development, already under construction, is scheduled for completion in November.
Penobscot Elder Homes will have 16 one-bedroom and eight two-bedroom units for residents 55 and older.
“Like a lot of populations, they are aging,” said Michael Bush, director of the department of housing for the Penobscot Nation. “This is an opportunity for elders who are aging to find housing to age in place.”
He said eight of the units will be ADA-accessible.
The total development cost is $5.79 million. The Penobscot Nation provided $3.4 million in soft construction to permanent loans. MaineHousing provided a $3 million construction loan, and Bangor Savings Bank provided a $750,000 construction loan.
All units will be restricted to households with incomes up to 50 percent and 60 percent of the area’s median income.
The two-story development will include a lobby with a common area, a community kitchen, community room and laundry rooms.
Residents will have access to various tribal services, including community service coordination, transportation services and a health clinic located 0.1 miles from the development.
Out of the 243 households who live on Indian Island, 45.2 percent have a head of household who is 55 or older, according to Hunt Capital.
Many senior households on the reservation are considered overcrowded, with multiple generations confined to a single unit.
Penobscot Elder Homes will increase the affordable housing supply on the island, Hunt Capital said.
Hunt Capital Partners’ executive managing director Dana Mayo said this is the Penobscot Nation’s first low-income housing tax credit deal.
“Penobscot Nation has put together an experienced team for this development,” Mayo said.
Penobscot Nation is the sponsor, developer and property management agent for Penobscot Elder Homes.
Genesis Community Loan Fund of Brunswick is the development consultant and has previously worked with the general contractor, E.W. Littlefield Inc. & Sons of Hartland, and the project architect, TAC Architectural Group of Bangor.
Littlefield began construction in October 2018.
The construction includes the demolition of an eight-unit, age-restricted complex known as the Nohkomess Apartments. All families have been relocated and are expected to move into Penobscot Elder Homes upon its completion, according to Hunt Capital.
Bush said the Nohkomess Apartments were in poor condition and it wasn’t efficient to modernize them.