For the first time since before the pandemic, new affordable housing units could be constructed in Auburn.

Auburn Housing Authority and Auburn Residential Development Corp. are behind a proposal to build 32 units at 143 Hampshire St.

The housing development aims to provide homeless individuals with permanent housing, Auburn Housing Authority Deputy Director Mary Young said. Rent will not exceed 30% of a person’s income.

“This is a proven housing intervention,” Young said. “It uses a Maine-based, data-backed model that has been successful in southern Maine by Avesta Housing and Preble Street for, I’d say, over two decades. So we’re pretty excited about this project.”

The city previously approved several affordable housing projects between 2015-2018, according to Auburn Public Services Executive Director Eric Cousens.

Around that time, residents were concerned that too many new subsidized apartments in such a short period of time would negatively impact the demand and pricing for market-rate units, but that did not happen, he said. The city is now looking to support more affordable housing projects.

Since the pandemic, Auburn has seen a boom in housing development, but it has all been in the form of market-rate housing. A report commissioned by the city and released last year found that it needs 1,300 more homes by 2030 to address chronic under production and future demand.

Auburn Housing Authority manages 564 affordable apartments in Auburn and Mechanic Falls, spread among 12 sites, according to information in the project application.

It has also administered around 595 housing vouchers helping individuals pay rent in privately owned apartments or houses.

The Hampshire Commons project is not expected to exceed $9 million, the project application said. Bangor Savings Bank has indicated an interest in potentially providing funding for the construction.

The project was awarded a 4% low-income housing tax credit allocation through MaineHousing and funding from Portland-based Home for Good to support permanent housing for individuals experiencing chronic homelessness, according to the application. Auburn Housing Authority will also provide 32 project-based vouchers.

Situated on .77-acre lot, the building will face Hampshire Street. The 14-space parking lot will be situated off Gamage Avenue, according to the application. There will be a healing garden outside the building.

It is in walkable distance to stores, businesses and services, and it is along a City Link bus route, the application said.

The three-story building will have 8,718 square feet. The top floors will have 14 units each, with four more units on the first floor.

Other areas of the building include:

• A fully staffed reception area
• A gathering space for residents and visitors 
• A separate meeting room 
• A laundry space and donation closet 
• A space for a medical office 
• A fitness and wellness space 
• A library/meeting room 
• A secondary kitchen/pantry/staff laundry room 
• An elevator to reach the upper floors

Spurwink will also provide a minimum of two staff per shift at the building every day, all day to support residents, according to the application.

Pairing housing with services all in one place has proven to be successful in other areas of the state and Auburn Housing Authority is excited to be bringing the model to the city, Young said.

“This is combining housing, which is a critical need for our unhoused community, but also providing them services at the same time,” she said. “And so this ultimately helps the community, there’s less service calls, persons are gaining access to much-needed housing and services. So it’s really a dynamic, all encompassing (project) to help the community.”

The Planning Board will hold a public hearing on the project at 6 p.m. Tuesday, April 14, at Auburn Hall.