INDIAN ISLAND, Maine — Hunt Capital Partners has funded $2.1 million in federal low-income housing tax credit (LIHTC) equity financing for the construction of Penobscot Elder Homes.
The community will be located on Indian Island within the Penobscot Nation Reservation, approximately 12 miles northeast of Bangor. The development will provide 24 affordable housing apartments for seniors.
Penobscot Elder Homes is Hunt Capital Partners’ 11th LIHTC investment in Indian Country and Penobscot Nation’s first LIHTC development.
Out of the 243 households who live on Indian Island, 45.2 percent have a head of household who is 55 or older. Many senior households on the reservation are considered overcrowded, where multiple generations are confined to a single unit, according to Hunt.
“We are glad to partner with the Penobscot Nation on their first LIHTC deal,” says Dana Mayo, Hunt Capital Partners’ executive managing director. “Penobscot Nation has put together an experienced team for this development. We look forward to its completion, and we believe the development will have a tangible, positive impact on the tribal community.”
Penobscot Nation is the sponsor, developer and property management agent for Penobscot Elder Homes. Genesis Community Loan Fund is the development consultant and has previously worked with the general contractor, E.W. Littlefield Inc. & Sons, and the project architect, TAC Architectural Group.
Construction for this development includes the demolition of an eight-unit, age-restricted complex formerly known as Nohkomess Apartments. All families have been relocated and are expected to return to Penobscot Elder Homes upon its completion in November 2019.
All units will be restricted to households who earn up to 50 and 60 percent of the area median income. The two-story development will also include a lobby with a common area as well as a community kitchen, community room and laundry rooms.
The total development cost is $5.8 million. Hunt Capital Partners facilitated the investment of federal tax credit equity by JPMorgan Chase through its proprietary investor fund, Hunt Capital Partners Tax Credit Fund 30. 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.