TOPSHAM

Redeveloped Navy housing at the former Topsham annex is 90 percent occupied — and more than a year ahead of schedule.

In a report on the progress of a town-endorsed housing disposition plan, Scott Howard of Affordable Midcoast Housing told selectmen Thursday occupancy rates at the former base should be an encouraging sign for the local economy.

Though there hasn’t been a significant increase in jobs, “you have Topsham and Brunswick being very attractive communities that people can commute easily from, and when they can come into the communities and find reasonably priced housing for rent or for sale, I think you’re going to have an attraction that brings people from outside the area in,” Howard said.

Howard said the first goal of the housing plan was to promote market stability. “Brunswick and Topsham housing sales, and the rental markets, are still recovering, but they appear to be much more stable today than they were two years ago.”

The occupancy rate for redeveloped homes at the Topsham annex “I think surprised all of us,” Howard said.

“We took your objective or goal seriously and AMH was very successful in getting 90 percent occupancy in less than nine months.”

Affordable Midcoast Housing — owned by developer George Schott — purchased 702 former Navy housing units in Brunswick and Topsham in October 2010.

In December 2011, Topsham selectmen, the Brunswick Town Council and the Midcoast Regional Redevelopment Authority approved its housing disposition plan for the former Navy housing.

In May, Affordable Midcoast Housing bought the land under the 702 units, Howard said. On May 7, the first houses were sold in the McKeen Street neighborhood, now called McKeen Street Landing. Six more houses on McKeen Street were put up for sale — and within 60 days, all 17 houses on McKeen Street were sold as Phase 1 of the plan, Howard said.

As part of the second phase, roads and utility infrastructure at about 95 homes in the McKeen Street Landing neighborhood are being reconstructed to town road standards.

There are an additional 10 McKeen Street Landing homes under contract, Howard told selectmen. Affordable Midcoast Housing hopes to begin selling those homes once the road is accepted by Brunswick, which could happen as soon as Oct. 15, Howard said.

Donald Russell, chairman of the Board of Selectmen, asked if the 90 percent occupancy was solely rentals.

Howard said the housing disposition plan for Topsham anticipated it would take two years to reach 90 percent occupancy for rentals, “and at that point there would be consideration as to whether there would be new construction, demolition of some housing and new construction of new housing.

“I think a two-year or a three-year period is still reasonable for that,” he said. “We were very surprised to have it rented up to 90 percent within nine months, but there is no plan at this time, because the housing market for new construction is still very, very anemic at best.

“The good news,” Howard continued, “the sale of existing homes which is driving most of the sales today is up 15 percent for the first nine months of this year,” when totaled for Brunswick, Topsham, Harpswell, Bath and Freeport.

Within the Patriots Commons in the annex, Howard said there were 56 housing units demolished with 73 units remaining. The longterm plan involved construction of a mix of single- and multi-family homes and condominiums, based on market demands.

With a significant investment in infrastructure improvements in the McKeen Street Landing neighborhood, Howard said it appears new construction would next take place in Topsham, and will require both new construction and infrastructure improvements.

McKeen Street Landing and Patriots Commons are two different communities “and two different types of neighborhoods that require a different level of investment and therefore would require a different sort of market,” Howard said.

Howard said 55 percent of the residents in the Patriots Commons neighborhood in the annex came from within the area and 45 percent from outside the area.

Affordable-household income objectives are being met, Howard said, both for rentals and home sales. More than 97 percent of those renting at the annex have household incomes of less than $75,000.

There was a lot of interest in having homes sold to young families, working households and retirees, Howard said.

At McKeen Street Landing, 53 percent of sales have been first-time homebuyers, working households and retirees; 94 percent of those home sales have been to “affordable income households,” far exceeding the minimum target of sell 10 percent.

Howard said there has also been significant improvement in water and sewer systems at the Topsham annex, where the infiltration into the sewer system has been reduced by more than 50 percent.

“The water and sewer systems have been, I would say, repaired and upgraded to a degree but in the long-term, there is going to be much more work needing to be done,” Howard said.

The company is also donating playgrounds at McKeen Street Landing as well as ball fields, basketball courts, walkways and trails to the town of Brunswick, with a contribution of more than $95,000 to help maintain and upgrade them.

Selectman Andrew Mason asked Howard if his company had determined why they reached the 90 percent occupancy level so quickly.

Howard said a very high level of renters came from outside the area.

“I think what was a pleasant surprise was how quickly and how many came from outside of the area… It speaks well, I think, of the communities.”