If everything goes according to plan, a 24-acre site on Middle Road in Boothbay Harbor will become a community of as many as 20 moderately priced homes, financed in large part by an anonymous benefactor.

The benefactor is acting on his pastor’s advice after asking how he could make a significant contribution to the community. He reached out to Dan Bryer, Boothbay town manager, in March for help with the project, asking to remain anonymous.

Just a few days before hearing from the philanthropist, Bryer was contacted by developer Ron Campbell, a member of the Alternative Organizational Structure (AOS) 98 board of trustees. Campbell asked Bryer if any funding could be secured for moderately priced homes in the area.

Both Bryer and Campbell are Boothbay Region High School graduates and concerned about the future of the community and the school system. Housing has been identified by Boothbay and Boothbay Harbor selectmen and the Joint Economic Development Committee as a critical issue for the peninsula.

After being contacted by the benefactor, the two immediately began to search for a property and located two parcels totaling 24 acres on Middle Road in Boothbay Harbor. The property was chosen for its access to sewer, water and utilities, Campbell said. The purchase and sales agreement was signed last week.

Preliminary plans call for half-acre lots and a community area for recreation. The benefactor is funding acquisition of the land and construction of the homes, and is offering significant financing to make home ownership possible.

Initially, six homes will be constructed with a goal of completing 20. “This could be a big game changer, and could have an impact on our schools,” Campbell said. “Hopefully, this is just the beginning and other benefactors will want to join the effort.”

According to Bryer and Campbell, three types of homes – small, medium and large – with at least three bedrooms each will be built for a selling price between $180,000 and $220,000.

While buyers will need to get a traditional mortgage, the philanthropist will fund a significant portion of the purchase price of each home with an interest-free loan (referred to by Campbell and Bryer as a “silent mortgage”) so that owners can build equity in their property. Covenants will be in place on the homes limiting the resale price so the homes continue to offer moderate pricing in the community.

A nonprofit has been created which will hold the interest-free portion of the mortgages and any unsold property. The goal, as both Bryer and Campbell said, is to make home ownership possible for more members of the community.

The homes may not be bought as a second home or offered as rental units.

Bryer and Campbell forecast both short and long term benefits from the venture. Along with home ownership for people in the community, there are employment opportunities working on the project and expansion of the town’s tax base. 

Bryer also hopes home ownership for families will help keep the school system vibrant. He pointed to the need to stabilize the population and build the overall community as major issues for coastal towns. However, ownership of the homes is not only for young families and is also an option for retirees who may wish to downsize from a larger house.

After learning of the opportunity, Bryer’s select board in Boothbay endorsed his efforts. Bryer also sought preliminary input in April from Boothbay Region Water District and Boothbay Harbor Sewer District.

BHSD Superintendent Christopher Higgins said its board was extremely enthusiastic and supports the new community. “I can’t imagine that there could be any backlash or opposition to this,” he said.

In April, Higgins walked the site with Campbell and Bryer. Higgins identified two possible routes for the sewer system and will opt for a route that is least intrusive in construction. “Depending on what we run into, we can place 100 feet of pipe in a day.”

Asked if he had any concerns about adding a number of new homes to the system, Higgins said, “It wouldn’t bother us a bit. We can take another 200,000 gallons per day and a three-bedroom house only puts out 300 gallons a day.”

“The board enthusiastically supports the project,” Jonathan Ziegra, general manager of the Water District told the Boothbay Register. While details will be announced in the future, Ziegra said, “We are glad to be playing a small part in it. Recruiting and retaining labor has been a problem with a dwindling number of people who can afford housing in the water district.”

Ziegra commended Bryer and Boothbay selectmen, calling the project “revolutionary” and saying the district would install the water main at the lowest price they can. Ziegra said his team would work within the construction schedule and it would take two to three weeks for their work to be completed. He added that the Water District would make the project “revenue neutral.”  

The peninsula’s shortage of moderately priced housing is a problem many residents have encountered. Working on a case-by-case basis over the past several years, Bryer has been quietly helping members of the community find homes.

He said he has been participating in discussions about the shortage of moderately priced housing for years but the problem hasn’t been resolved. “I’ve spent the last four years working on housing with various committees,” Bryer said. “But to be approached by a developer and have a vision and an investor – this one is really serendipity.”

“If we can prove this model works,” Bryer said, “we’ll have no lack of investors.”