Tackling the affordable housing shortage requires a myriad of creative solutions. Building new affordable homes is essential, but multi-family developments can take years to complete. Meanwhile, thousands of houses in Maine sit vacant due to abandonment, foreclosure, or other reasons.
A new program administered by the Avesta Housing HomeOwnership Center is an innovative tool to address the housing crisis while helping moderate-income Maine residents realize their dream of owning their first homes. Through “A Path Forward – Homeownership for ME,” Avesta acquires and rehabilitates properties that are in disrepair, then sells them at below-market prices to qualifying households. Sales proceeds are used to help fund the next home acquisition and rehab, providing a strategic reinvestment for years to come.
The properties also utilize a shared equity model that benefits both current and future homeowners. This model ensures that the homes retain affordability in perpetuity while granting individuals and families the ability to build financial wealth — a key component to providing housing stability to future generations.
“Maine has some of the oldest housing stock in the country, and many of these existing homes sit vacant and in disrepair. Meanwhile, real estate prices continue to hit record levels. First-time homebuyers are faced with the choice of delaying purchasing a home indefinitely or settling for homes that need a lot of work,” said Avesta Housing HomeOwnership Director Nicole DiGeronimo. “‘A Path Forward’ provides a way for them to buy high-quality homes without incurring unsustainable mortgage or home-improvement costs.”
A three-bedroom house in Gray is currently undergoing extensive renovations as the first “Path Forward” home, and we anticipate opening the application process for that property this spring. We have received generous contributions from Bangor Savings Bank, Mascoma Bank Foundation, and Machias Savings Bank to help launch this exciting new program, and are actively pursuing additional funds.
