WATERVILLE — Signs of housing growth are popping up all over the city as more than 350 new apartments are in various stages of development.

Even with those numbers, more still are needed to meet the continuing demand for housing in this northern Kennebec County city of more than 17,000 people.

“We are facing a severe housing shortage,” Garvan Donegan, president and CEO of the Central Maine Growth Council, said.

Waterville is experiencing a period of sustained economic and population growth, which is a positive sign about the local economy, but that also highlights a critical need for housing and housing infrastructure, Donegan said.

“A 2020 housing study identifies a potential citywide market of 2,050 households per year for new and existing housing units over the next five years,” Donegan said. These figures are likely conservative and have only increased since 2020.”

Exactly how many housing units are needed in Waterville is difficult to say, he said, but current data suggests between 1,080 and 2,000 new units are needed by 2030 to meet its proportional share of the housing deficit in Kennebec County.

City Councilor Rebecca Green, D-Ward 4, said city officials are talking about having a housing study done to try to determine a focus.

Green, who has served as the former chair of the City Council and the city’s housing committee, was a key player in promoting housing development in Waterville. She said she doesn’t think a number has ever been identified for the exact number of housing units the city needs.

“I think that the truth is, we need housing of all kinds, and lots of it,” she said.

Waterville wants to increase the number of owner-occupied housing units and address the quality of housing stock, which go hand in hand, Green said.

Here’s a look at the projects underway in Waterville.

KING STREET PROJECT

Construction is about 40% complete on a $16 million, 37-unit, affordable housing complex at 52 King St. being developed by Kennebec Valley Community Action Program.

The project, in Waterville’s South End, broke ground in September, and the 49,500-square-foot building will include one-, two- and three-bedroom units, according to David Pelton, KVCAP’s chief financial officer.  

“All units are earmarked as affordable, targeting renters who earn 50%-60% area median income,” Pelton said. “The rents are set by the state each year, usually in April.” 

Pelton said he expects a one-bedroom apartment will rent for $983 a month; a two-bedroom for $1,173; and a three-bedroom for $1,350.

Basic utilities are included in the rental cost and the only additional expense for renters would be cable service and a land phone line if they want that, Pelton said.  

KVCAP filed plans for the complex through the Waterville Planning Board in 2023 and approved the project in January 2024.

LOCKWOOD MILL PROJECT

Construction of a $40 million housing project in the former Lockwood Mill at 6 Water St. continues. Twenty-four apartments have been completed and occupied, with more move-ins expected in March.

The development by owner North River Co.  is expected to include 65 apartments.

The property will be managed by the Waterville Housing Authority, according to Dan Jacques, director of Maine operations for North River.

Jacques said phase one of the project is nearing completion and a ribbon-cutting ceremony will be scheduled for late April.

North River also owns 8 Water St, and 10 Water St., which is the Hathaway Creative Center in the southernmost building of the three Lockwood mills. The building has 67 apartments on upper floors and commercial space leased to MaineGeneral Health, Cianbro Corp., Hathaway Mill Antiques and Dirigo Labs.

North River, a privately held real estate investment and management firm based in New York City, also owns the Fort Andross Mill in Brunswick and mills in Portland, Boston and New York.

S.D.G. ESTATES

Construction of a 20-unit housing complex is slated to begin sometime this year and would include five buildings with four, two-bedroom units in each, on less than an acre.

S.D.G. Estates is near the Fairfield town line and abuts the Waterville Elks Lodge property, whose entrance is off Industrial Road. The land is owned by Dennis Brockway.

“The developer is working with builders to finalize a floor plan for the units,” Jeff Allen, an engineer for A.E. Hodsdon Consulting Engineers, said Friday in an email.

HEAD OF FALLS VILLAGE

A $35 million to $40 million Head of Falls Village housing project at Front and Temple streets is awaiting funding to start construction.

The development includes plans for 63 units in two buildings at the site, which has been cleared to make way for the housing.

Todd Alexander of Renewal Housing Associates LLC/Leon N. Weiner & Associates Inc. of Portland are heading up the development.

“We are still trying to secure financing to start construction,” Alexander said. “The fundamental challenge for a project like Head of Falls Village in a market like Waterville is that the current rents do not support the total capital required to complete the development.  This creates a ‘financing gap’ — the difference between the amount of private capital that the market can support and the total cost of development.”

The financing gap, he said, is compounded by three things: interest rates that have increased since predevelopment work started in 2021-22; significant inflation of construction costs; and the project includes a very ambitious and expensive site plan that requires major investments in public infrastructure and utilities. 

“Therefore, to move forward with the current master plan, we must raise a significant amount of gap financing from public or other sources in the form of below-market loans and grants,” Alexander said. “The market for these public funding programs has experienced a fair amount of disruption over the past few years.”

He said he and other officials are working on a number of applications and proposals that, if successful, will allow construction to start this year. 

MANOR GARDENS

Manor Gardens is an apartment complex on College Avenue developed by Arcon Realty, a company that for more than 40 years has owned, redeveloped and operated many rental properties in Waterville’s North End. Arcon first presented plans to the city for the project in 2022.

Donegan said the plans are for 33 units, and 20 units have been completed as part of a first phase of development.

The complex, with one- and two-bedroom units, is on property of the former John Martin’s Manor, across College Avenue from the rail yard.

WASHINGTON STREET COMPLEX

The first of several buildings planned as part of a 40-unit housing complex at 15 Washington St. is under construction.

The development by John Jabar Jr. is located about 1,000 feet from the intersection with Kennedy Memorial Drive. The city’s Planning Board approved the project last year.