The Problem and what Home Start is doing about it…

The Problem

Like many island communities, Peaks has watched real estate prices soar, making it more difficult for those with low to moderate incomes to purchase a home on the Island.  In addition, homeowners who rent their winterized properties can earn significantly more by doing a winter rental and then renting it by the week during the summer, at much higher prices.  Each year, many year-round renters must scramble to find a place to live during the summer.  These include:

  • People who’ve grown up on the Island and want to stay;

  • Families with children enjoying the freedom of growing up on Peaks, while also keeping our Island K-5 school strong;

  • Middle-aged singles, often women, who prize Peaks’ safety and diversity;

  • Artists and other creatives who have always added a special flavor to Peaks;        

  • Caregivers of all ages who support elders aging in place.

There is an annual exodus of people who just can’t find a permanent living space on Peaks and must leave.  This is not how a diverse community grows and thrives.

What Home Start Has Achieved

In 2010, Home Start acquired the house and property at 18 Luther Street, and secured a conditional zoning amendment that allowed its side property to be subdivided in half. This created two additional lots on which to create two new affordable rental houses. To complete this project, Home Start raised over $600,000 through grants, loans, and $35,000 in community donations. The construction and ownership of the two new houses were turned over to Volunteers of America, while Home Start retained ownership of the original home which continued to be rented affordably. Over the years, these two new homes have been rented by four different Island families. Home Start also rented the original red house affordably for 10 years to 5 different households, including 9 children.

In 2015, Home Start began a project to identify small zoning changes that could encourage the small scale development of more affordable year-round housing on Peaks Island. The same year the Portland City Council approved a zoning ordinance change that allowed the building of Accessory Dwelling Units (ADUs) on lots much smaller than current zoning permitted.

In 2018, Home Start successfully pushed for a zoning code amendment to remove the restriction that the property owner must live at the property. This change allowed Home Start to proceed with the building of an ADU onto the house it owned at 18 Luther Street, and to upgrade the existing house. The construction of the ADU was completed in 2020, made possible by a $36,000 grant from the Portland Housing Trust Fund, and $36,000 in matching contributions from the community. At Home Start's request, another amendment was also added requiring all new ADUs on Peaks to be year round rental only.

In 2021, a long time Island resident moved into the new ADU at 18 B Luther St., and Home Start turns its attentions to the original red house; it was liveable but needed repair. Home Start realized that the house and ADU could be sold affordably to a first time home buyer, helped by the ADU income.  In June 2022, a young island family became its new owners, with the stipulation that the existing ADU tenant be allowed to stay for 7 years.  Home Start netted over $100,000 in the sale which will be used to help pay for the 18 Central project.

In 2021, Home Start signed a Purchase and Sale Agreement with the City to develop 3 units of affordable housing at 18 Central Ave.  The brick building on the property was originally built in 1968 as the parish hall for St. Christopher's Church as well as a day care center. Long time islanders remember tap dancing on its upstairs stage!  Sold in 1999 to a family for use as a private residence, back taxes accrued leading to the City's offer to Home Start to purchase it in return for paying back and continuing taxes.  As of July 2023, we have a design and budget and are moving ahead with a zoning variance and fund raising to get us to its completion by summer 2024.

We also hope to add a one-bedroom house on our other property at 143 Pleasant Ave, subject to a separate zoning appeal process.  Stay tuned to the website for updates.

For more information about the plans and progress of the 18 Central project, click here.