Peoples Heritage Bank and York-Cumberland Housing Honored for Revitalizing Westbrook Neighborhood

A community partnership between Peoples Heritage Bank and York-Cumberland Housing Development Corp. has been named a national 1999 Social Compact Honoree for Partnership Achievement for its success in revitalizing and preserving a Westbrook neighborhood.

The national recognition is given to businesses that form public/private community partnerships which strengthen local neighborhoods. Peoples Heritage teamed up with York- Cumberland Housing (YCHDC) and secured the equity and financing needed to transform depressed properties in the Steeple Square (formerly Scotch Hill) neighborhood in Westbrook into 73 units of high-quality, affordable rental housing. Peoples Heritage provided the construction loan, assembled other funding for the $5.8 million project, and sponsored YCHDC's successful application for a federal grant.

"Peoples is proud to have played a significant role in the redevelopment of the Steeple Square neighborhood into safe, attractive and affordable housing for 73 families," said David J. Ott, president and CEO of Peoples Heritage Bank. "We believe that the short and long-term success of any business is directly related to prosperity and a sense of community as a whole. This project will benefit many families, and the community, for years to come."

At Steeple Square, a deteriorating group of 16 buildings was transformed into a cluster of affordable housing. The rents for the renovated one-, two- and three-bedroom apartments range from $189 to $521 a month.

"An undertaking of the size and scope of Steeple Square is necessarily a complex one and we are truly appreciative of the support we had from our development partners, especially Peoples," said Diana Huot, executive director of York-Cumberland Housing. "And while we are extremely pleased with the results we have achieved with Steeple Square, our redevelopment and community building efforts in the neighborhood continue."

Peoples Heritage Bank has worked with YCHDC, Maine's largest nonprofit developer of affordable housing, since the early 1980s securing financing and creating funding sources for a number of affordable housing projects. Various bank employees also have served on the YCHDC Board of Directors, providing them with first-hand knowledge of affordable housing needs. Peoples Heritage and YCHDC also are currently "partnered" to provide a 36-unit assisted living facility in Gorham. The Inn at Village Square will offer high quality residential care for very low to moderate income elderly residents.

Peoples Heritage Bank is a Maine-based bank with 75 banking centers throughout the state, five of which operate as Oxford Bank & Trust, a division of the bank. The bank offers special products and programs to low income and minority groups, Housing Authorities and economic development organizations.

Peoples also is the major participant in a $30 million loan pool administered by the Maine Community Reinvestment Corporation (MCRC). The pool provides favorable loan terms to developers of affordable housing. In addition, the bank was instrumental in the formation of the Maine Housing Investment Fund, which purchases Low Income Housing Tax Credits for Maine projects.

The 1999 Social Compact honorees from across the country will be the focus of a national recognition program on May 4 and 5, launched at the National Press Club in Washington, D.C. Events include a congressional symposium with testimonials from industry pioneers who are creating the new models for doing business in underserved areas, as well as a reception at the Federal Reserve Bank headquarters.

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