The 16-unit development is among more than 400 new apartments in Maine supported by the Rural Affordable Rental Housing Program

Newcastle, MAINE -- Governor Janet Mills today cut the ribbon on a new 16-unit affordable apartment complex in downtown Newcastle.

The project is part of the Rural Affordable Rental Housing Program, created by Governor Mills in 2021 through her Maine Jobs & Recovery Plan, which over the past three years has supported the construction of more than 400 new apartments in Maine communities from Sanford to Presque Isle.

"Whether someone is retired, working full time, looking to rent an apartment in a rural town, or to buy their first home in a city, there should be a place for that person in Maine," said Governor Mills."These new apartments, appropriately built to match the character and charm of Newcastle, will help this community thrive. While the need for housing in our state is still significant, I am proud of the apartments and homes that we have built for Maine families so far."

Support for the Newcastle project stems from funding proposed by Governor Mills and authorized by the Legislature in 2023 and administered through MaineHousing. The two 8-unit apartment buildings were built by KBS homes in South Paris and feature Maine-made wood-fiber insulation manufactured by Timber HP in Madison.

"Reaching the finish line on this project brings much-needed housing to my community of Newcastle," said project developer Rob Nelson. "It would not have been possible without years of effective local planning, innovative state programs launched and supported by Governor Mills and the Legislature, and private development efforts. By combining public and private resources, we can meet the housing needs of Maine communities."

"This affordable housing project is a powerful example of what's possible when a community plans ahead and works together,"said Tor Glendinning, Chair of the Newcastle Select Board. "A decade ago, we questioned whether growth was even in Newcastle's future -- now we can't build fast enough. The foundations laid through our comprehensive plan and the overhaul of our zoning code are paying off. There's still much to do -- rising costs and housing challenges won't be solved by policy alone, so we're especially grateful to MaineHousing with the continued financial support of Governor Mills and the Legislature as well as the developer and his team for taking the risk to make this one a reality."

Since 2019, the Mills Administration has dedicated nearly $315 million to alleviate Maine's housing crunch -- nearly five times the amount the state spent on housing from 2000 to 2018. These investments have resulted in 2,100 new apartments and homes to date, with more than 1,800 under construction, and more than 1,500 units in the pipeline for construction.

In the past few months, financing for the creation of nearly 400 new homes and apartments has been announced for around the state, including:

• $13.4 million to create 129 new apartments in Portland and Lewiston, including 41 affordable apartments for seniors in the Time and Temperature building, and 88 affordable apartments in Lewiston -- 44 at the former Martel School location, and 44 at a site at the corner of Ash and Bates Streets.
• $23.5 million to build 137 apartments in 9 communities through the latest awards from the Rural Affordable Rental Housing Program.
• $9.3 million to construct 125 new single-family homes in 10 communities like Sanford, Rumford, Waterville, Monmouth and Bangor.

In addition to these investments, several new housing developments have also opened recently around the state, including the revitalized Spinning Mill in Skowhegan, a long-vacant industrial site now transformed with 41 new apartments, and the Picker House Lofts in Lewiston, which features 72 units in the renovated Continental Mill.