Yarmouth, Maine, is taking a new step toward addressing its housing shortage, with construction beginning on 18 affordable apartments behind Town Hall. The $6.3 million development on Cleaves Street marks the town’s first new affordable housing construction since 2018 and represents an early milestone in its effort to make housing more accessible to local residents.
The project will deliver 18 one-bedroom apartments across two buildings in Yarmouth Village. Monthly rents are projected at $1,800, including utilities, according to the developer, 36 Cleaves Street LLC. Applications are expected to open in 2027, giving prospective residents time to prepare before the apartments become available.
Financing for the development includes a $3.1 million subsidy through MaineHousing’s Rural Affordable Rental Housing Program and a $2.9 million interest-free loan. The funding is helping move the project forward in a community where affordable housing construction has been limited and housing costs have made it difficult for some residents to remain in town.
The apartments are intended for households earning no more than 80% of the area median income. Under the developer’s stated eligibility limits, a one-person household must earn less than $77,920 annually, while a two-person household must earn less than $89,040. These restrictions are designed to reserve the homes for residents who may struggle to afford housing at prevailing market rates.
Yarmouth has been working toward a broader housing goal for several years. In 2020, the Town Council established its Affordable Housing Committee to examine local housing needs and identify ways to increase supply. In 2024, the council adopted a target of producing 431 affordable housing units over 10 years, making the Cleaves Street development an important first step toward that objective.
The need for additional housing extends beyond people seeking subsidized rentals. Local workers, younger couples, and older residents looking to downsize can all face challenges finding homes that fit their budgets. The town’s location near the Greater Portland area also puts it within a region where housing demand can place pressure on prices and rental availability.
The project has drawn attention partly because of its location. Situated behind Town Hall and near the village center, the development makes use of an established area with existing infrastructure and access to nearby services. Town officials have said construction impacts should be limited, although parking at Town Hall is being temporarily reconfigured while work proceeds.
Construction is expected to take about a year, with the buildings scheduled to be enclosed by January. If the timeline holds, the apartments could provide additional housing options in a town where new affordable developments have been uncommon. The previous major project, Bartlett Woods, delivered 28 units of senior housing in 2018.
The 36 Cleaves Street project will not resolve Yarmouth’s housing challenges on its own, but it puts the town’s affordability goal into action. Its progress could also offer a model for other Maine communities seeking to combine public funding, local planning, and private development to create homes for residents who might otherwise be priced out of the places where they work and live.
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