M&T Bank Arranges Financing for 200-Unit Sagamore Village Affordable Housing Renovation in Portland, ME
M&T Bank (NYSE: MTB) has signed a financing agreement with the Portland Housing Development Corporation (PHDC) to fund the restoration and renovation of Sagamore Village, a 200-unit affordable housing development in Portland, Maine, the bank announced March 31, 2026. The deal represents a complex, multi-layered approach to financing that relies on Maine's historic tax credit program rather than the more commonly used Low-Income Housing Tax Credits (LIHTC).
Renovation Scope and Community Impact
Sagamore Village was originally constructed in 1942 to provide housing for World War II Liberty Ship builders. The Portland Housing Authority acquired the property in 1953 and has operated it as public housing for low-income families ever since. The complex is listed on the National Register of Historic Places.
The renovation will address decades of deferred capital needs, including the removal of hazardous materials, improvements to indoor air quality, and upgrades to non-code-compliant mechanical, electrical, and plumbing systems. The project will also renovate the existing community center — including its community room, kitchen, study center, and administrative offices — and add an expanded food pantry, a new permanent health clinic operated by Greater Portland Health, and additional nonprofit space.
"Sagamore Village has been a home to some families for twenty or thirty years, over multiple generations," said Justin Barker, Development Officer at Portland Housing Development Corporation. "After decades of deferred capital needs due to lack of funding, we are excited to partner with M&T Bank to revitalize this historic community and provide meaningful improvements to our organization's oldest housing stock and for some of our longest-tenured families. Affordable housing projects are very difficult to accomplish without the use of Low-Income Housing Tax Credits, but M&T Bank has collaborated with us to provide a unique financing structure that works without cutting corners on the renovation scope."
Financing Structure
The financing structure required careful sequencing of construction activity, historic tax credits, and multiple layers of financing — a configuration designed to keep the project moving forward while preserving flexibility. A key feature of the deal is its use of Maine's unique historic tax credit program, which allowed PHDC to act as an investor in the transaction, according to the bank.
As part of the closing, M&T Bank also arranged a forward-committed Freddie Mac Tax-exempt Loan (TEL), which will serve as the project's permanent financing once construction is complete. The forward commitment is intended to provide long-term financial stability and lock in affordability requirements for the property going forward. The total loan amount was not disclosed.
"Preserving affordable housing is essential to the strength and stability of our communities and this project protects two-hundred homes while giving a historic property new purpose," said Phil Cohen, M&T Bank's Regional President in Maine. "By bringing together the right mix of financing and partners, M&T Bank is helping support the rehabilitation of Sagamore Village that will sustain long-term affordability, enhance resident services, and ensure this community continues to thrive for generations."
About the Parties
The Portland Housing Development Corporation is the development arm of the Portland Housing Authority, which has operated Sagamore Village as public housing since 1953. Freddie Mac's Tax-exempt Loan program provides permanent financing for affordable multifamily properties, typically following a construction or rehabilitation phase. M&T Bank served as lead lender and financing arranger on the transaction. M&T Bank is headquartered in Buffalo, New York, and operates across 12 eastern U.S. states, including Maine.