Thanks to an affordable housing lottery, a single mom just bought the house of her dreams for a fraction of what a typical home goes for in ritzy Kennebunkport, Maine.
Local nonprofit group Kennebunkport Heritage Housing Trust organized a contest seeking to sell a home for just over $326,000 when properties in the affluent coastal town go for $1.1 million on average, according to Zillow.
That represents a 71 percent discount, yet only 45 Mainers expressed interest in the three-bedroom, two-and-a-half bath home, the Bangor Daily News reported.
Out of the initial 45, only three applicants met the guidelines to be considered.
The single mom who won the lottery was chosen last Thursday, and she’ll live in the 1700 square foot home with her child who’s enrolled in the Kennebunkport school district.
Pictured: The three bedroom, two-and-half bath home that a family of two won for a price tag of $326,000, which is 71 percent cheaper than the average house in Kennebunkport
‘She is very excited to have this home,’ said Larissa Crockett, executive director of the Kennebunkport Heritage Housing Trust.
Beyond its homey white shingles, a spacious front porch and a modern kitchen, there’s a lot more to love about this property.
For one, it’s a five minute drive west to the center of town.
If you don’t want to get in your car, it’s walking distance from the Cape Porpoise Harbor, which has plenty of scenic areas to gaze out at the water.
The house is also close to a number of highly-rated lobster restaurants, a specialty in New England.
All of these perks and more left Crockett wondering why more families didn’t apply for a chance to live there.
Pictured: An open concept dining room that leads into a living room
The kitchen is complete with an island and modern amenities
Like most housing lotteries, this one appealed to a small sliver of people based on how much money they bring in.
In this case, the buyer couldn’t make more than 120 percent of the area median income, which the listing defined as $93,975 for a two-person household.
The median household income in 2022 for Kennebunkport residents was a whopping $113,456, more than 52 percent higher than nation as a whole.
Buyers also had to get pre-approved for a mortgage through a bank and complete a homeownership course.
And since this home sale was set up for the expressed purpose of making it affordable for people with shallower pockets than the average Kennebunkport resident, this property cannot be rented on a short or long term basis.
To ensure the continued affordability of the home, the buyer also had to sign a land lease at closing instituting a maximum sales price.
This means that the woman who successfully bought this home won’t be able to turn around and sell it for market price.
She’ll also have to live in the home all 12 months of the year unless the trust gives her an exemption.
Colony Beach in Kennebunkport. This beach is less than three miles from the affordable home
A Kennebunkport marina during the morning hours, filled with boaters
A welcome sign with houses along Kennebunk River in the background
If these restrictions are what held people back from applying, Crockett hasn’t heard any feedback that would suggest this.
‘To allow someone to purchase a home at half the market value, to then be able to turn around and sell that home at market value is really, I think, disrespectful of the generosity and support of both public and private resources,’ she said.
This $326,000 home is surrounded by properties going for $450,000 on the low end and waterfront mansions going for $7.75 million on the high end.
Tara Baker, the owner of Kennebunk Beach Realty, told Bangor Daily News that she recently listed a home under $1 million. And in just three days it was snapped up under contract.
‘It’s still a seller’s market, for sure,’ Baker said.
To counter this seller’s market, Crockett said she would be conducting a ‘deep debrief’ to figure out how to improve the trust’s next affordable housing project and get more people to apply.