Peoples Heritage Bank Donates $30,000 and Assists with Loans to Boost Neighborhood Housing Initiative in Lewiston

Peoples providing mortgage assistance for new 15-unit condo complex aimed at helping revitalize inner city neighborhood

LEWISTON, Maine - Peoples Heritage Bank has donated $30,000 and is providing mortgage assistance as part of a collaborative effort to provide new, affordable and quality homes in a downtown neighborhood in Lewiston.

Peoples made the donation to the Neighborhood Housing Initiative, Inc. (NHI), the not-for-profit developer formed by Sisters of Charity Health System, the parent company of St. Mary's Regional Medical Center in Lewiston.

The NHI consists of 15 three-bedroom homes, which are being built in phases over an 18-month period on a knoll at the intersection of Maple and Blake streets, an area where the poverty rate exceeds 38 percent and home ownership is less than 15 percent, according to U.S. Census figures. The first duplex is completed, and the first new homeowner closed last month.

Michael W. McNamara, president and CEO of Peoples Heritage Bank, said the bank values public-private partnerships like this one. The bank's Bates Mill facility, where hundreds of bank employees work, is three blocks from the neighborhood.

"Home ownership is going to play a vital role in stabilizing and revitalizing that neighborhood," McNamara said. "We're pleased to be able to become involved in this worthwhile endeavor and provide assistance wherever we can."

"It is encouraging to see the positive effects of such a strong community partnership between the Neighborhood Housing Initiative and Peoples Heritage Bank," said James Cassidy, president and CEO of Sisters of Charity Health System. "Through projects like this, Peoples is becoming an integral part of Lewiston's development."

Peoples Heritage Bank, together with its affiliate Banknorth Mortgage Group, is working with the Maine State Housing Authority to utilize MSHA programs to allow low down payments, down payment assistance and favorable mortgage terms. The bank also will process the MSHA loans at no cost and return to the project any servicing release premiums earned on the loans after they are sold to MSHA. The $30,000 donation is intended to help defray project costs and ensure that the housing remains affordable for the targeted market audience.

When completed, the NHI will consist of one duplex, a triplex and two five-plexes for a total of 15 housing units. Each will incorporate traditional neighborhood design features and include three bedrooms, 1 1/2 baths, a full basement, off-street parking, major kitchen appliances, oil-based hot water baseboard heat and laundry hookups.

The homes are on the market at $80,000, although new homebuyers are presented with a variety of financial incentives to address affordability and cash requirements, which can reduce the first mortgage to as low as $40,000. Also, the project will include an extensive homeownership education program.

Peoples Heritage Bank is a Maine-based bank with more than 60 branches throughout the state, four of which operate as Oxford Bank & Trust, a division of the bank. For additional information about Peoples, visit online at www.peoplesheritage.com.

Other organizations contributing to the project include Coldwell Banker Millett Realty; the City of Lewiston; Community Concepts; Empower Lewiston; Fannie Mae; Humanitas Foundation; Lewiston Housing Authority; Maine Association of Realtors Foundations; and the Maine State Housing Authority.

The Sisters of Charity Health System includes St. Mary's Regional Medical Center, a 233-bed acute care facility that combines the best of medical technology and human compassion to serve the needs of the Androscoggin County area and beyond; St. Marguerite d'Youville Pavilion, the state's largest nursing home; Maison Marcotte, an independent living center for the elderly and disabled; and WorkMed Occupational Health Services, which provides comprehensive worksite services to businesses.

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Peoples donated $30,000 and will assist with mortgages as part of the Neighborhood Housing Initiative's (NHI) plan to build a 15-unit condo complex to help revitalize a downtown neighborhood in Lewiston where the poverty rate exceeds 38 percent. Peoples presented a check during a ceremony at the site on Friday (Dec. 13). From left, James Cassidy, president and CEO of Sisters of Charity Health System, the NHI's parent; William J. Ryan, chairman, president and chief executive officer of Banknorth Group, Inc.; Michael W. McNamara, president and CEO of Peoples Heritage Bank, a Banknorth subsidiary; and Normand J. Albert, an executive vice president in commercial lending at Peoples.