State officials announced plans Wednesday to build 92 new affordable apartments in three cities on the front lines of Maine’s homelessness crisis. 

The projects in Portland, South Portland and Bangor are part of MaineHousing’s Home for Good program, more commonly known as “Housing First.” The initiative, established in 2023, is intended to address chronic homelessness through stable, affordable housing and supportive services.

“Addressing Maine’s housing needs calls for a number of creative approaches, including ways to get people off the streets and into stable housing, where they can then get help to turn their lives around,” Gov. Janet Mills said in a joint news release with MaineHousing.

The buildings will provide 24-hour supportive services with on-site social workers to help residents find employment or access help for substance use disorders and other mental health challenges, according to the release. 

The Maine Department of Health and Human Services will provide funding for the supportive services.

Tenants will not spend more than 30% of their income on rent. 

“Chronic homelessness is often caused by underlying and untreated physical and mental health illnesses, which when left uncared for, adds up far beyond the cost of providing people with the housing and support they need to stay healthy,” Dan Brennan, director of MaineHousing, said in a statement. “This proven formula not only saves lives in the long run, but it also saves money, and it improves the overall health of our communities and the state of Maine.”

The $36 million effort includes $12 million from the state, according to the release. The remaining $24 million will be financed through MaineHousing loans and the federal Low Income Housing Tax Credit program.

A timeline for the three projects was not included.

The announcement comes as some affordable housing projects in Maine have been stalled (and are at risk of being stopped altogether) by the requirements from Build America, Buy America, a newly implemented federal rule that requires projects receiving certain government funds source 95% of the materials from domestic sources – many of Maine’s projects have been waylaid waiting for waivers for certain HVAC equipment that they can’t get from the United States.

A MaineHousing spokesperson said Wednesday that the money for the new projects was “intentionally structured the financing to avoid reliance on any BABA-affected funds.”

MaineHousing issued the first round of Home for Good funds in April 2025, supporting five projects in Sanford, Portland, Augusta, Auburn and Bangor that will create 138 units.