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Dash Davidson and Max Patinkin are founding principals of High Tide Capital, a developer based in Bangor.
Maine is in a housing crisis, exacerbated by high construction costs, inflation, interest rates and a challenging regulatory environment. We desperately need solutions.
Fortunately, there is a successful and bipartisan solution that has the potential to create thousands of new housing units in Maine: The redevelopment of our historic buildings.
Maine has one of the leading state historic tax credit programs in the country, and the state and federal tax credit programs have directly supported the redevelopment of many Maine downtowns. However, right now, there is a truly unique opportunity to expand and secure the programs’ ongoing success.
Fortunately, Maine’s congressional delegation has championed the importance of the historic tax credit program. Sen. Susan Collins in particular was an original cosponsor of the Historic Tax Credit Growth and Opportunity Act — and has long recognized the program’s ability to catalyze economic development in Maine and across the nation.
At High Tide Capital, our mission is to revitalize historic downtowns. From our headquarters in Bangor, we have restored seven historic buildings on main streets across Maine, generating 160 new housing units and driving residents to downtowns such as Skowhegan, Orono, Rumford and Bangor where they support small businesses and economic development. We’re dedicated to supporting that mission statewide.
Our projects and others like them would not be possible without the catalyst of the federal and state historic tax credit programs. For more than 45 years, these credits have transformed hundreds of derelict historic properties preserving our state’s history while adding to housing and Maine’s economy. Over the past 24 years, 161 federal historic tax credit projects have generated over $893 million in total development, $400 million of which on housing development.
On the state front, Maine’s legislators from both sides of the aisle have just passed LD 1755, legislation that adds a rural boost to the state historic program. Driving much-needed housing and economic development to rural main streets. Through the support of Gov. Janet Mills, the affordable housing coalition and a great group of bipartisan legislative leaders, LD 1755 has been funded, and we hope will spur a new wave of housing in rural communities.
On the federal front, 2017 changes materially reduced the value of the program, impacting main street projects from Millinocket to Eastport and mill projects in Lewiston, Waterville and beyond. Rectifying those changes would make historic redevelopment across the state more viable and unlock thousands of new housing units.
Today, with Collins’ leadership, we have a rare opportunity to make overdue improvements to the federal historic tax credit — a program that favors Maine — creating new housing, economic development and community preservation. With the Senate focused on passing its version of H.R. 1, the window to improve the federal historic tax credit is narrowing.
We thank Collins and the entire delegation for their advocacy and urge them to continue to make the historic tax credit program a priority for their colleagues in Washington.
