Bessey senior housing goes forward

December 28, 2006

Bessey senior housing goes forward

By Erica Thoits
Reporter

SCARBOROUGH (Dec 27): With state backing, construction could begin in July for the first phase of a project to turn the historic Bessey School into affordable senior housing.

The Maine State Housing Authority last week approved a 10-year, $7.8 million tax-credit deal for the project, according to Cyndy Taylor, of the nonprofit Housing Initiatives of New England, which is spearheading the project.

An architect's rendering shows how the new wing will attach to the Bessey School. (Image courtesy of Housing Initiatives of New England)

"I'm quite excited," said Taylor. "We're all just delighted."

The 54-apartment Bessey Commons will be partially located in the old Bessey School building, originally completed in 1927 as the town's high school. Housing Initiatives of New England will renovate the school into 14, one-bedroom apartments. A new, attached 40-apartment wing is also planned.

The 7.8-acre site is located on Route 1 in Oak Hill next to the Maine Veterans' Home. The first phase of construction, to renovate the school and build the new wing, is anticipated to begin in July 2007. According to documents filed with the town, most of the construction should be done by October 2008. A second phase of construction, said Taylor last month, could one day include a senior center, though nothing definite has been planned.

To help pay for construction and operating costs, the developers were relying on their application with the Maine State Housing Authority. The review process, said Bill Glover, manager of lending with the housing authority, is very competitive. Each year the authority reviews about 17 applications and scores them on over 100 criteria. Five or six receive funding.

"What's really great about all this," said Taylor last Thursday, "is that we scored the highest amount of points."

"They did a lot of work," said Glover. "It's very hard work to put these things together."

Some aspects of the project that stood out, said Glover, were the quality of design, the number of apartments and amenities that will be available, its location, the experience of the developers and the financial help from the town of Scarborough.

Last July 20, the developers signed a 99-year lease with the town for a cost of $1 per year, the town effectively donating the land to the project. In October, the town council unanimously approved the 30-year Bessey School Affordable Housing Tax Increment Financing District, or TIF, to help with construction, renovation and operating costs.

The total construction costs are estimated at about $10.9 million, and the total operation costs for the first 30 years is about $15.6 million. According to the agreement, the TIF will give back 100 percent of the property taxes to the Bessey School project. Over the life of the TIF, about $3.3 million will go back to Bessey Commons.

An architect's rendering shows the entrance to the new building that will be attached to the Bessey School. The addition will include 40 apartments of independent senior housing. The Bessey School is shown to the left of the entrance. (Image courtesy of Housing Initiatives of New England)

However, the TIF alone is not enough to pay for the project. The estimated $3.3 million is less than 20 percent of the total operating costs for the first 30 years. Developers have applied for a number of loans, and recently received an $800,000 grant from the Federal Home Loan Bank of Boston under its affordable housing program.

The $7.8 million from the Maine State Housing Authority, said Glover, will come in the form of tax credits. In other words, he explained, Bessey Commons will not have to pay that amount in state taxes over 10 years. The deal is contingent upon actual construction, he said.

Affordable housing in the town's center is a goal identified by the Scarborough Comprehensive Plan, completed earlier this year. Under the town-wide plan, village center districts were created to allow affordable housing such as the Bessey School Commons project.

In 2005, the town also created the Scarborough Housing Alliance to discover housing needs in town. One of the alliance's recommendations was for the town to create more affordable senior housing. According to 2000 Census data, about one in every five households is headed by someone 65 or older. There are about 4,000 seniors in Scarborough.

In September, the Senior Advisory Committee, established to find out the feasibility of a senior center in Scarborough, completed a survey of the town's seniors. One of the top complaints listed in the survey was the costs of living in Scarborough.

According to information provided by Housing Initiatives, of the largest 18 communities in southern Maine, Scarborough ranks last in available affordable housing.

"There is a sizable need for more affordable housing," said Glover.

At Bessey Commons, 33 of the apartments will be for seniors with incomes that are 50 percent or less of the area's median income, with an estimated monhly rent of $600. The remaining 21 apartments will be for seniors with incomes that are 60 percent or less of the area's median income, wih an estimated monthly rent of $728.