Portlands city council approves loan for affordable housing project [Video]

The Portland City Council approved loaning more than $942,000 from the city’s housing trust fund for an affordable housing project near Woodford’s Corner on Monday night, but put off a vote on another housing project.

Community Housing of Maine, a nonprofit affordable housing developer, plans to build 84 units dedicated to residents 55 and older along Woodford Street near Woodfords Congregational Church. The group asked for the $942,000 loan from the city’s housing trust fund and $3.7 million in tax-increment financing over 30 years to help finance the development. The council unanimously approved the loan, with two amendments.

Tax-increment financing is a common funding source for affordable housing projects. Tax revenues from new development in specific parts of the city can be diverted back to developers or placed in special municipal development accounts to pay for projects outside of the city’s regular budget.

Director of Housing and Economic Development Greg Watson said at the meeting that city staff supports the project.

Councilor Anna Bullett …