Why are you selling the same home at three different prices?

The townhomes being built on Butler Road cost well over the listed prices to develop. Every household that purchases one will receive a subsidy and pay less than the cost to develop it. The size of the subsidy depends on the income of the household that purchases the property. A household with a combined income of $100,000/year will pay more than a household with combined income of $75,000/year. However, both will pay less than the cost to develop the home and neither will pay more than 41% of their gross income. This is how affordability is spread equitably across the project.

How did you arrive at the prices?

These listing prices were established in consultation with local lenders, using underwriting criteria for single-family home mortgages. Prices are intended to ensure that households spend no more than 41% of their gross income on housing costs. The listed prices reflect subsidies between $35,000 and $200,000/unit.

Who is paying for these subsidies?

BRDC has successfully raised more than $3.4 million in private funds. These donations are being used to reduce purchase prices for income eligible buyers.

Is BRDC making a profit on the sale of these homes?

No, BRDC is a 501(c)(3) organization and will not profit from the sale of these homes. BRDC’s board members do not receive compensation for their work. BRDC hires qualified architects, engineers and other industry professionals to execute the work needed to complete this project.

Can you give me an example?

A household making an income of $74,920/year (80% of AMI) can spend $31,127/year (41%) on housing costs. Property taxes, insurance, and HOA fees are estimated at $7,300/year, leaving $23,827 available for mortgage payments. This equals a monthly mortgage payment of $1,986. A payment of this size can support a mortgage of $330,000. This household will spend 31% of its income on the mortgage, leaving 10% of their gross income available for taxes, insurance, HOA fees, and utilities. These homes will be very energy-efficient and use electric heat pumps for heating and cooling, reducing the costs of ownership.

How is AMI determined?

Area Median Income (AMI) is published annually by the Department of Housing & Urban Development (HUD). In 2024, the most recently published figures, the AMI for Lincoln County is $94,900 for a 4-person household.

Are there other ways to help buyers with the costs of homeownership?

There are several other programs buyers can access to help make purchasing a home more accessible. MaineHousing’s Advantage program offers $5,000 towards down payment and closing cost assistance if buyers have completed an approved Homebuyer Education class and use a MaineHousing loan to purchase the home. The Federal Home Loan Bank offers closing cost and down payment assistance through their Housing Our Workforce (HOW) and Equity Builder programs through their local banking partners. 

Do homebuyers gain equity?

Yes! BRDC has developed a shared equity model that allows owners to share in the increased value of their property, while ensuring it remains affordable those who meet the income criteria in the future. At the time of resale, an appraisal will determine the sales price. Any increase in value will be split, with 75% remaining with the non-profit and 25% going to the seller of the home. The portion that the non-profit retains will run with the home, buying down the cost for future purchasers. This model also ensures that those who sell their home in the future will not be burdened with the process of needing to income-qualify potential buyers—the non-profit will manage that process.