Damariscotta-based Genesis Community Loan Fund announced the launch of a $1 million fund that will deliver financial and technical assistance to island communities seeking to improve services and opportunities for home ownership and affordable rentals for year-round residents. Genesis was joined in the kick-off of the Island Sustainability Fund by Camden National Bank, which made the first investment in the fund of $50,000.
Genesis is familiar with the housing needs of island communities. According to Genesis executive director Elizabeth McPherson, “the idea for a targeted fund to support Maine’s island communities was based on past Genesis work on Islesboro, Vinalhaven, and Monhegan and on the concerns we’ve heard about the impact of skyrocketing real estate values on island communities.”
When island residents can no longer afford to live on-island, their departure has tangible impacts on the long-term sustainability of that community. Since the early 1900s, the number of islands with year-round populations has diminished from 300 to 14.
While some islands have had limited success in addressing housing concerns, other islands such as Monhegan, Peaks and Vinalhaven are in the early stages of developing affordable alternatives for local residents.
Since 1992, Genesis has made over $4.8 million in loans and leveraged an additional $29 million through its financing and grant writing assistance to create or improve 576 units of affordable housing for Maine’s most vulnerable populations. Genesis relies on low-interest investments from individuals and organizations to capitalize its loan fund. Genesis re-lends these funds to bridge the gap between the resources organizations are able to obtain from traditional sources and the amount needed to purchase, rehabilitate, or develop property for community purposes.
Through the Island Sustainability Fund, investors can target their resources to projects that occur on the 14 Maine islands with year-round populations. The $50,000 investment from Camden National Bank is the first investment in this Fund. Sr. Vice President and Community Reinvestment Act Officer Joanne Campbell noted, “As the only bank in the state with a full service branch on Vinalhaven (one of the 14 islands with a year-round population) Camden National Bank has a longstanding commitment to Maine’s island communities. The investment in the Island Sustainability Fund will support further community development activities on the islands and reflects the bank’s history of seeking creative opportunities to fulfill its Community Reinvestment Act responsibilities.”
In developing the Island Sustainability Fund, Genesis worked with several organizations and island residents to revisit past efforts to address island affordable housing and facilities issues and to assess the potential for future initiatives. According to Garrett Martin, who has been responsible for developing the initiative for Genesis, several individuals and organizations provided assistance in the development of the fund. Island-based groups such as the Isle au Haut CDC, Cranberry Isles Realty Trust, Frenchboro Future Development Corporation, Islesboro Affordable Properties, and the Monhegan Island Sustainable Community Association all contributed through their work. The Island Institute provided information through its publications and knowledge of the islands. Maine Seacoast Mission provided an introduction to several of the islands, and the Maine Community Foundation has assisted as well.
“Obviously, we’re thrilled about the investment from Camden National Bank,” he said, “but we know that ultimately the proof will be in the work that gets done on each island. For us, the challenge continues to be making island residents aware of the resources we have to offer and working with other investors and philanthropic entities to secure the additional support needed to address the problems of housing affordability and facilities on the islands.”
Through the Island Sustainability Fund, Genesis anticipates supporting two to three island projects a year. The long-term goal of these efforts is to work with island communities to improve housing affordability and to stabilize their year-round populations. For more information on the Island Sustainability Fund contact the Genesis Community Loan Fund at 207-563-6073 or visit the website at www.genesisfund.org.