LEWISTON — Years of planning, financing and delays have put off construction of the former Martel School campus, but the $17 million project is scheduled to move forward with a groundbreaking ceremony next week.

The July 16 ceremony marks the beginning of construction of the first of three 44-unit apartment buildings for Lewiston’s 55-and-older community — Lewiston Housing Authority’s latest effort to address the city’s shortage of affordable housing for older residents. 

Lewiston Housing Director of Development Penn Lindsay told city councilors Tuesday that the project reached a financial closing on the first phase of the project. A notice to proceed was issued to the contractor allowing construction to begin, he said.

Lindsay said the project is moving forward as more than 1,600 households are on the city’s housing waiting list, with 1,456 waiting for Housing Choice vouchers. Some 90% of public housing applicants and 73% of voucher applicants are seeking one- or two-bedroom apartments.

The project began during the COVID-19 pandemic in 2022 when Lewiston Housing acquired the property at 860 Lisbon St. The acquisition was followed by a long financing period, which included a combination of federal Low-Income Housing Tax Credits (LIHTC), MaineHousing funds and local tax increment financing approved by city councilors.

The project saw setbacks due to the pandemic and, more recently, the drawn out process of financing. Originally slated for a 2024 groundbreaking, the date was moved up twice more in 2025. 

“LIHTC deals are very complicated with a lot of moving parts and different parties involved, so timelines often remain a bit fluid until the very end,” Lewiston Housing Executive Director Chris Kilmurry said Thursday. “Thankfully, we are now closed, and (Penobscot General Contractors) is in the early stages of construction mobilization.”

Phase I of the project includes 44 units of senior housing, Killmurry said, estimating that construction would run a full year. “We plan to have units occupied in the fall of 2027,” he said.

Phase II, which will build off of the Phase I building, already has an LIHTC award for an additional 44 units of senior housing, Killmurry said, adding that Lewiston Housing hopes to close by the end of the year. The aim is to match the same construction timeline as Phase I with anticipated move-ins in the first quarter of 2028. 

“We recently submitted a preapplication to Maine Housing’s 9% LIHTC round for Phase III of the property, which, if funded, will provide another 44 units of Senior Affordable Housing,” Killmurry said. 

The Phase III building will be separate from the connected Phase I and II building. 

On Tuesday, city councilors approved a credit enhancement agreement providing a 75% tax reimbursement for the project’s third phase, which Lindsay said will strengthen their LIHTC application through MaineHousing. He said without tax increment financing, the project would have a $754,000 funding gap.

The groundbreaking ceremony will begin at 10:30 a.m. on the Martel School campus at 860 Lisbon St.