Governor Mills, MaineHousing Announce Award of $12 Million for Creation of 92 Housing Units to Address Homelessness

Three housing developments in Bangor, South Portland, and Portland will support community efforts to address chronic homelessness

Governor Janet Mills and MaineHousing today announced the award of $12 million in grants through Maine's Home for Good program, which will create 92 new affordable apartments in three Maine communities that support efforts to address and prevent chronic homelessness.

The three selected developments -- in Bangor, Portland, and South Portland -- were chosen through a competitive review process. Each development represents a significant step forward in the Mills Administration's ongoing commitment to expanding housing options across Maine, such as by increasing the supply of affordable homes for sale and rent, initiatives to support housing for individuals experiencing chronic homelessness, or by incentivizing accessory dwelling units and other market-based housing.

"Addressing Maine's housing needs calls for a number of creative approaches, including ways to get people off the streets and into stable housing, where they can then get help to turn their lives around," said Governor Mills. "With these awards from MaineHousing, communities will have more resources to address the serious challenges caused by chronic homelessness."

Each development is expected to utilize a comprehensive financing structure that includes 4% Low-Income Housing Tax Credits, MaineHousing tax-exempt bond financing, and State subsidy to support capital expenditures. In total, the state investment of $12 million will leverage $24 million in additional funding, including federal Low-Income Housing Tax Credits (LIHTC) and MaineHousing loans.

"Chronic homelessness is often caused by underlying and untreated physical and mental health illnesses, which when left uncared for, adds up far beyond the cost of providing people with the housing and support they need to stay healthy," said MaineHousing Director Dan Brennan."This proven formula not only saves lives in the long run, but it also saves money, and it improves the overall health of our communities and the state of Maine."

In addition to the financing for construction through MaineHousing, the Maine Department of Health and Human Services (DHHS) will provide ongoing funding for the 24-hour supportive services required at each property, helping residents maintain housing stability and access care. Residents have 24-hour access to supportive services, with on-site social workers available to help residents find employment, support daily living skills, and provide access to services for substance use disorders or mental health challenges.

The Home for Good grants represent a critical pathway to ensure individuals previously facing chronic homelessness have access to services as they transition into new, stable housing," said DHHS' Director for the Office of Behavioral Health, Sarah Squirrell."Services will be provided with the goal of eliminating or mitigating previous barriers to successfully maintaining housing and preventing return to homelessness, paving the way for healthier, safer outcomes for the individual and the community."

To ensure long-term stability, 100% of the units in each development will be supported by vouchers which require tenants to pay up to 30 percent of their income on rent.

Established by Governor Mills in 2023, the Home for Good program continues to demonstrate Maine's commitment to addressing housing challenges through strategic investments, public-private collaboration, and innovative policy solutions.

MaineHousing issued the first round of Home for Good awards in April 2025, providing $20 million in state funding for five projects in Sanford, Portland, Augusta, Auburn, and Bangor that will create a combined 138 units of housing to address chronic homelessness.

Since taking office in 2019, Governor Mills has made a historic investment of $315 million to alleviate Maine's housing crunch -- nearly five times the amount the state dedicated to housing production from 2000 to 2018.

To date, these housing investments have resulted in 2,100 new apartments and homes, with more than 1,800 under construction and more than 1,500 units in MaineHousing's affordable development pipeline - the largest in its history.

In January, Governor Mills proposed an investment of $70 million through her "American Dream" housing initiative to build more affordable homes and bring down the record high housing prices, as part of her Affordability Agenda (PDF) to deliver near-term financial relief for Maine people.

In addition, Governor Mills in 2025 signed historic legislation to knock down barriers to housing in Maine: laws that reform zoning and permitting for construction projects; laws that expand the historic rehabilitation tax credit; laws that simplify Maine's building codes to encourage responsible housing development and avoid sprawl; and laws that help residents of mobile home parks, including a law to establish a right of first refusal so residents have the chance to buy their parks before an out-of-state corporation can.

Governor Mills has also signed legislation to create Maine's first ever long-term funding source for affordable housing production, by increasing the tax rate on the portion of real estate sales over $1 million. Through this measure, Maine expects to generate $17 million in revenue in the first year alone, which will go directly into a new Housing Production Fund at MaineHousing.

In her first term, Governor Mills signed into law the Maine Affordable Housing Tax Credit, the single largest state investment in housing in Maine's history, and a $15 million senior housing bond for the construction of more than 400 new affordable housing units for low-income seniors and the weatherization of another 100 existing homes for low-income seniors.