Former Saco church slated to become affordable housing

The City of Saco has sold a former downtown church for $1 to an organization that will create affordable housing.

The  6,534 square foot former Methodist church, located at 12 School St., was built around 1900 and is on a .15 acre parcel. The city purchased the property in 2019 for $240,000, with the intention of rehabbing it for a teen center and community space. With the increase in construction costs, the city decided to sell the property and pursue other space for a teen center.

The city put out a request for bids for the property and received one response. Non-profit organization Quality Housing Coalition was the sole bidder, offering $1 for the building with the intention to create affordable housing and public meeting space.

The City Council unanimously voted Monday night to sell the property to Quality Housing Coalition for $1. The Coalition plans to create six deed-restricted affordable housing units on the first floor. Two of these proposed one-bedroom units will be available for newly hired City of Saco employees in need of housing. The second floor would be a meeting space for building residents, the city of Saco and local non-profits.

City Administrator John Bohenko said Saco needs ways of attracting and retaining city employees, especially public safety and public works staff. The developer is creating two designated city staff apartments which will help the city attract new employees, and investing $294,000 in the creation of each apartment, he said.

“I wouldn't take the position that we're selling it for nothing, I would take the position that we're getting a benefit of almost $600,000 for those apartments,” he said.

City Councilor Tricia Huot asked if there was any way of assuring the building would remain as affordable housing after it was rehabilitated and not sold to another property owner to use as market-rate housing.

Economic Development Director Tracey Desjardins said the developer is pursuing grants and the funding would require the building to be used as affordable housing.

Saco Bay News Publisher Liz Gotthelf can be reached at [email protected].