Bangor council backs conditions for Yellen Pines credit enhancement deal

The Bangor City Council voted 8-1 in a workshop to accept nine staff-recommended conditions for a credit enhancement agreement tied to the Yellen Pines permanent supportive housing project. Councilors added a preference for Bangor residents and a requirement that annual reports include where residents came from. Wayne Mallar voted no, citing reservations about drug use at the low-barrier facility.

Key points

• The council voted to accept nine recommended CEA conditions, including capping the assessed value used for the 75 percent reimbursement at $3 million over 30 years, requiring the property to remain affordable housing, and allowing the city to suspend or terminate reimbursements if conditions are not met.
• Councilors added a condition giving a preference to Bangor residents, provided it complies with Home for Good program and fair housing rules, and added a requirement that annual reporting include where residents previously lived.
• Wayne Mallar voted against the package, saying he still had reservations, largely about whether illegal drug use would be tolerated at the low-barrier permanent housing site.
• Mallar pressed project representatives on how drug use would be handled; they said illegal drug use is a lease violation that can lead to eviction, though eviction requires a court process that can take 60 to 90 days.
• Carolyn Fish and Daniel Carson raised concerns about the lack of data on where homeless residents come from, and Joseph Leonard suggested a city ambassador program to collect that data.
• City Solicitor David Szewczyk said the city could ask Maine Housing to require notice to Bangor if the owner breaches program restrictions, and clarified the property would transfer to a limited partnership at loan closing.

Next steps

• Staff will send the council the Maine Housing Home for Good program requirements and will work with legal counsel to draft the CEA agreement for council review.
• The council asked for enough time to review the draft CEA agreement before voting on it.
• The city will request that Maine Housing provide an annual report and require notice to Bangor of any program violations.
• The option agreement with Bangor Housing Development Corporation expires at the end of September, with closings targeted for roughly 60 days after, around October or early November.
• City Manager Carollynn Lear noted no council or committee meetings next week, and Labor Day will push committee meetings to Wednesday.

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