Though Cumberland County may have the largest population in the state, only a small portion of federal money for affordable housing and urban renewal reaches cities and towns outside the Portland hub.
But county officials are hoping to change all this through a proposal to make all towns in Cumberland County eligible for federal funds to benefit the community beyond town borders.
Only three cities in the state (Portland, Bangor and South Portland) now get direct federal money through the federal Department of Housing and Urban Development.
All other cities and towns must apply for individual grants through the state. In recent years, most of this federal aid, known as Community Development Block Grants (CDBG), has gone to towns north of Augusta.
But if enough local communities sign on to the county’s proposal, the county could be eligible for $1.5 million to $2 million a year in federal dollars.
The proposal hinges, however, on the city of South Portland giving up its personal “entitlement” to community development funds.
Since 2002, the federal government has doled out about $500,000 in aid to South Portland each year. The city used this money to fix sewer issues, create affordable housing and support heating oil assistance for low-income residents.
But South Portland is willing to give up this entitlement if it is guaranteed the same amount of money under the county’s proposal. If the city is held harmless by participating in the county’s plan, city officials are willing to help the greater community receive more federal aid.
“This would have the effect of bringing more resources into Cumberland County,” Sotuh Portland city manager Jeffrey Jordan said. “There’s certainly a benefit to our city if the region does better as a whole.”
The town of Windham signed on to the deal on Tuesday with a unanimous vote by Windham’s Town Council.
Town Manager Anthony Plante is the president of the Greater Portland Council of Governments, a group that has been working to help design and support the county effort.
“If you take the same money and spread it out here and there, you don’t have the same impact,” Plante said. “But if we focus it in a few specific regional priorities, then we can make a much greater impact.”
In the past decade, Windham has received few federal grants of community development, amounting to about $20,000.
For almost a decade, the town has tried, in cooperation with Gorham, to get federal grants to revitalize the South Windham area. Their plan included improved sidewalks, densely settled condos and affordable housing, small shops at Keddy Mill and a park beside the Presumpscot river.
“Truthfully, most of the grants go north of Augusta,” said Councilor David Tobin, a supporter of this South Windham renewal. “By combining forces, we’ll have a better chance of getting some kind of grant money.”
In Raymond, Town Manager Don Willard believes if the town signs on to the proposal it won’t make much difference to the town directly, but what benefits the county also benefits the community at large, he says.
Because only a small fraction of Raymond residents are below the poverty line, the town can’t apply for most Housing and Urban Development grants. However, Raymond received a $400,000 grant in 2002 to extend the public water line into Raymond from Windham.
In Naples, Town Manager Derik Goodine is excited by the county proposition. It’s been difficult, he said, to compete for grants with towns in northern Maine.
“I think it’s an excellent idea,” Goodine said. “Cumberland County has not received its proper share of CDBG funds in the past.”
If the county receives region-wide eligibility from the federal government, money could be used to fund affordable housing in Naples and support its own downtown revitalization now underway.
County Manager Peter Crichton has been visiting towns across the county to sell this idea of a regional eligibility for community development money. And the response has been good so far, he says.
“People see the wisdom in doing this,” Crichton said. “It just makes sense and I think it will really help the region.”
Cities like Westbrook, Brunswick and Bridgton have asked for “set asides,” or guaranteed money, but those negotiations are still ongoing. These cities do have a higher poverty rate than the rest of the county, and, therefore, the federal money should follow the need, Crichton said.
County officials needed a population base of 100,000 people in order to apply for this eligibility. A certain percentage of that population must also be below the poverty rate since most of these community development funds go to benefit affordable housing, urban renewal and social service programs.
The city of South Portland has not yet signed any steadfast contract giving up its entitlement to make the region eligible for the same federal dollars. But county officials hope to garner enough support to have a contract ready to sign by the middle of May.
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