Credit: Sanford Housing Authority
By Kendra Williams
The Sanford Housing Authority Development Corp. has been awarded $2.5 million in federal funding to support the development of workforce and senior housing in Sanford and the surrounding region. The funding, secured through a federal spending package championed by U.S. Sen. Susan Collins, will act as seed money to strengthen competitive applications for additional state and federal housing resources.
Sanford Housing Authority Executive Director Diane Small said the investment is aimed at ensuring residents within the authority’s nine-town jurisdiction have access to stable housing. “We want to ensure that people in our jurisdiction have the opportunity to live in safe, affordable, and well-maintained homes,” Small said, adding that securing early funding helps local projects remain competitive for full development awards.
According to Small, the need for housing — particularly for residents aged 55 and older who may still be employed — continues to grow. The Sanford Housing Authority currently maintains a waiting list of more than 700 households. While the list is long, Small emphasized that applicants should not be discouraged. “There are many factors that are weighed,” she said, noting that some applicants may move through the process more quickly than expected.
The funding will be used during the pre-development phase to conduct feasibility studies evaluating potential housing opportunities throughout York County and the authority’s broader catchment area. This work includes zoning reviews, environmental studies, and site evaluations, as well as consideration of access to transportation and childcare. Small said these factors are critical to determining where housing can best support residents in remaining stably housed and thriving. Pre-development work is expected to take up to six months, followed by a three-to-four-month feasibility study and application review period.
Housing officials said the $2.5 million award strengthens future applications to MaineHousing by providing early funding that reduces the amount of state subsidy required, making local projects more competitive for full development funding. Once fully funded, affordable housing projects can take up to two years to complete due to financing and construction timelines.
The nonprofit Development Corporation serves as the development arm of the Housing Authority, enabling it to acquire property and pursue financing tools such as low-income housing tax credits and tax increment financing, which require nonprofit ownership. Under this structure, the Development Corporation acquires and develops properties while the Housing Authority contracts to manage and maintain completed units.
The planned housing is intended to serve asset-limited, income-constrained, employed (ALICE) households and low-income workers, including certified nursing assistants, childcare providers, retail employees, and others who earn modest wages and often live on tight budgets. Housing officials said these workers are essential to the local economy but frequently struggle to get ahead due to rising housing costs.
In addition to new construction, the Housing Authority has pursued workforce housing through land bank programs that purchase and rehabilitate homes, reselling them below market value to local workers. Officials said the approach can also involve working with homeowners who wish to downsize, allowing the Development Corporation to acquire and rehabilitate their homes for resale as workforce housing. Fair housing rules apply to ensure properties are sold at reasonable prices and not to out-of-state, for-profit entities.
The Sanford Housing Authority Development Corp. is one of two York County projects included in the Maine funding package. In Wells, York County Community College will receive $6.5 million to construct year-round student housing.
The post Housing Authority Details Plans for Use of Grant appeared first on Sanford Springvale News.
