Affordable Housing Implementation Guide
Introduction
The Affordable Housing Implementation Guide prepared for the City of Bangor, Maine, by HR&A Advisors in February 2025 is a strategic, technical roadmap designed to help city staff and local leaders translate housing market analysis into actionable policies and programs. The document acknowledges that Bangor faces a unique set of housing challenges: a slightly shrinking but aging and higher-income population, rising rents that low-income renters, and a large inventory of older properties needing significant repair. At the same time, employers struggle to find workers who can live near enough to commute. Consequently, producing more homes is framed not just as a social necessity but as an essential economic development strategy.
The guide’s core objective is to identify and implement affordable housing tools across three categories: land use and regulatory tools, subsidy tools, and tenants’ rights tools. However, the primary focus is on three specific mechanisms: By-Right Zoning, Developer Attraction & Capacity Building, Local Funding & Competitive Processes, and Financial Incentives for Housing Development. The following summary captures the essential recommendations, best practices, and implementation milestones from the document.
1. The Housing Context and Priorities in Bangor
Bangor needs more housing for diverse residents, including smaller households, first-time homebuyers, and seniors. While the city’s population is shrinking slightly, the demographic shift toward older, higher-income residents means demand for certain housing types like studios, one-bedrooms, townhomes, and senior-friendly units is growing. Moderate-income households (up to 120% of Area Median Income, or AMI) are at risk of leaving due to a lack of entry-level for-sale homes or quality rentals. Low-income renters (up to 60% AMI) face even fewer options.
To address this, the city aims to:
Reduce market barriers for housing of all types, especially for moderate-income households.
Dedicate public funding to subsidize rentals for low-income households.
Prioritize smaller homes, downtown locations, senior housing, and townhomes for first-time buyers.
The guide emphasizes that affordable housing solutions must be multi-pronged. Land use changes alone won’t serve the lowest-income residents; subsidies are powerful but limited by budget; tenant protections prevent displacement but don’t change market fundamentals. Hence, Bangor’s implementation strategy combines regulatory flexibility, developer outreach, local funding, and targeted financial incentives.
2. By-Right Zoning: Making Development Easier and Faster
Background and Current Status
Bangor has already made significant land use changes since 2019, including allowing Accessory Dwelling Units (ADUs), reducing lot sizes and parking requirements, and permitting multifamily and mixed-use by-right in more zones. A new land use planning process running through 2025 offers an ideal opportunity to go further.
Best Practices and Lessons
The guide highlights Maine’s LD 2003, which mandates density bonuses for multifamily developments that include affordable units allowing 2.5 times the base density and capping parking at two spaces per three units. It also cites Durham, NC’s “Expanding Housing Choices” initiative, which allowed duplexes on single-family lots and issued 372 building permits within a few years.
Implementation Needs for Bangor
Zoning changes: Reduce minimum lot sizes (especially outside urban zones), make townhomes and duplexes by-right wherever single-family homes are allowed, and explore density bonuses beyond LD 2003 to produce more middle-income homes.
Responsibility: City Planning staff will lead, working with the City Council and Planning Board. Minimal funding required beyond staff costs.
Community outreach: Use the land use planning process to educate the public on how zoning affects affordable housing and affordability.
Timeline: Within one year, identify zoning changes; within 1-2 years, adopt them; ongoing tracking of permits, unit types, and approval times.
Anticipated Impacts
By-right zoning will help Bangor meet housing production targets and deliver priority housing types, but it will not produce housing for the lowest-income residents. It will, however, foster more inclusive neighborhoods by diversifying housing types beyond single-family zoning.
3. Developer Attraction & Capacity Building
Why It Matters
Bangor’s rents are low relative to regional markets, but construction costs are comparable, making other towns more attractive for developers. To compete, the city must build trust with both large regional developers and small local investors (including homeowners interested in ADUs). Proactive relationship-building, technical assistance, and clear communication can reduce perceived risk and encourage investment.
Current Programs
Bangor already offers development pre-meetings, is developing a library of pre-approved building plans, and runs a Vacant Properties Program that turns tax-delinquent properties into productive use. However, outreach is limited and no formal developer capacity-building program exists.
Best Practices
Columbus, OH’s Emerging Developers Accelerator Program (EDAP): Provides training, capital access, and consulting to minority and women developers.
Baltimore’s Vacants 2 Value: Streamlined disposition of city-owned properties, leading to 4,200 vacant buildings rehabilitated.
Encinitas, CA’s Permit-Ready ADU Program: Pre-approved plans and expedited permits increased ADU permits from fewer than 10 per year to over 150.
Implementation Needs for Bangor
Transparency & information: Post the developer liaison’s contact info on the city website, create informational guides for regional developers and small developers, and provide ADU-specific materials.
Trust building: Host quarterly open houses or office hours for anyone interested in housing development.
Connection to resources: Create an expedited review program for developers who build priority housing types, prioritize Vacant Properties Program buyers who serve income-qualified households, and offer low-cost loans for ADUs (with affordability requirements).
Timeline: Within 1-2 years, establish the liaison role and launch open houses; within 3-5 years, add resources and partnerships, track metrics like units permitted by developers new to Bangor.
Anticipated Impacts
This effort will help attract regional developers and grow local capacity, delivering more moderate-income housing, but not deeply affordable units. It positions Bangor as a desirable investment destination.
4. Local Funding & Competitive Processes
The Need for Local Dollars
Regulatory changes alone cannot overcome market barriers. While Bangor receives federal entitlement funds (HOME, CDBG), those come with high compliance costs and are impractical for small projects like single-family homes or small rentals. Local funding allocated through general funds, affordable housing bonds, or tax increment financing can fill the gap. A predictable, multi-year funding commitment allows developers to plan pipelines.
Current Status
Bangor uses CDBG for down payment assistance and repairs, and used ARPA funds for permanent supportive housing. MaineHousing is the primary affordable housing financier, and the state’s Affordable Housing Tax Increment Financing (AHTIF) program offers flexible local tools.
Best Practices
Portland, ME’s Jill C. Dyson Housing Trust Fund: Provides gap funding for households up to 120% AMI, with priority for workforce housing (60-100% AMI). Funded by ARPA, housing replacement fees, and other local sources.
Fairfax County, VA’s Housing Blueprint: A dedicated fund from real estate tax revenue offering 2% interest loans. FY25 funding exceeded $42 million.
Implementation Needs for Bangor
Dedicate local funding: Determine a sustainable funding level and source (general funds, bond, land sale proceeds, etc.). Aim for recurring multi-year commitment. Consider an AHTIF district.
Deploy via competitive process: Use a Notice of Funding Availability (NOFA) with a scoring matrix that evaluates project strength, financial terms, and alignment with city goals (number of affordable units, depth of affordability, location).
Responsibility: City housing staff, City Manager, and Council. If an AHTIF district is pursued, apply to MaineHousing.
Timeline: Within 1 year, evaluate funding sources and pursue state opportunities; within 2-3 years, allocate and award funds; continue through years 3-5.
Metrics: Homes developed per year by income level, average city funding per home, amount of private/state/federal leverage.
Anticipated Impacts
Direct subsidy is one of the most powerful tools to produce new affordable housing for both rental and ownership. The scale of impact depends entirely on the level of funding committed.
5. Financial Incentives for Housing Development
Overview
Beyond direct subsidies, financial incentives like fee waivers, deferrals, or infrastructure investments can make moderately-priced homes feasible. Bangor already provides land and infrastructure investments on a case-by-case basis, but a more systematic approach is needed. Fee waivers will not close large gaps but can tip marginal projects toward viability.
Current Status
Bangor collects fees for new construction, demolition, and permits. The state’s Housing Opportunity Program (from LD 2003) offers municipal payments (up to $10,000), service provider grants, and municipal grants. The state is also exploring more infrastructure funding.
Best Practices
Maine Housing Opportunity Program: Provides direct payments and grants to municipalities. Bangor should actively engage to shape and access these funds.
Polk County, FL: Waives impact fees for low-income units, reimbursing fees as units are occupied, with an annual cap of $250,000.
Philadelphia, PA: A 10-year tax incentive increased development by 367% (compared to 11% in suburbs without it), with every 2 in net revenue.
Implementation Needs for Bangor
Infrastructure investments: Work with state funders and developers to identify priority improvements (roads, utilities, stormwater) that enable housing development. Use AHTIF or state grants to pay for them.
Fee waivers: If pursued, conduct financial analysis to determine affordable levels. Set clear eligibility criteria based on income served (up to 120% AMI) and location. Waivers should be available through administrative approvals to reduce delays.
Responsibility: City housing and planning staff coordinate with state funders; City Council approves any fee waiver program.
Timeline: Within 1 year, begin state discussions and list infrastructure needs; within 2-3 years, evaluate fee waiver feasibility and continue pursuing state funds.
Metrics: Number of homes developed with incentives per year, average incentive cost per home, leverage from other sources.
Anticipated Impacts
Financial incentives especially infrastructure investments, can unlock development that otherwise wouldn’t happen. When paired with fee waivers, they signal that Bangor is open for business for workforce housing.
Cross-Cutting Themes and Conclusion
Throughout the Affordable Housing Implementation Guide, several cross-cutting themes emerge:
No single tool is sufficient. By-right zoning increases supply but not deep affordability; developer outreach builds pipelines but requires subsidies; local funding is powerful but limited by budget; incentives can tip projects but need clear criteria.
Implementation requires coordination across city planning, housing staff, the City Council, the state (MaineHousing, DECD), and private/nonprofit developers.
Metrics for success are consistent across tools: number of units permitted and delivered, unit types, approval times, income levels served, and leverage of outside investment.
Public outreach and education are essential, especially for zoning changes and local funding measures that may require voter approval.
The guide concludes that by pursuing these four priority tools in a phased, coordinated manner, Bangor can address its housing crisis, support economic development, and create a more inclusive community. The emphasis on implementation with clear timelines, responsible parties, and measurable outcomes transforms the plan from theory into action. For city staff, this document serves as both a strategic vision and a daily reference for advancing affordable housing in Bangor, Maine.
Also Read: A Blueprint for Creating Affordable Housing for DC’s Lowest-Income Residents in America