Seniors living in Freeport will soon have a new option for affordable housing within walking distance of downtown.

The nonprofit Freeport Housing Trust, Inc. and co-developer Timothy Gooch are building 42 residences they’re calling Varney Heights Senior Apartments on Varney Road off U.S. Route 1. On May 6, Freeport Town Council voted unanimously to approve the affordable housing tax increment financing deal that would allow the project to advance.

“The use of the TIF is so that we can borrow more money so that we can pay for all of the costs associated with the building,” said Matt Peters, Freeport Housing Trust executive director. “As it stands, Freeport Housing Trust is putting in our own resources, which doesn’t normally happen on these types of low-income housing projects.”

The Varney Heights development received local approvals in November 2024. Freeport Housing Trust plans to break ground on construction in July, and residents are expected to move in during the fall of 2026.

Freeport projects that the residential development will generate approximately $53,000 annually in new tax revenue upon completion. Varney Heights features a library, garden beds, on-site laundry, on-site professional property management and dedicated support from a resident service coordinator.

“The Town of Freeport and Freeport Housing Trust have partnered for decades to meet the needs of the community,” Peters said. “The Varney Heights TIF funding from [Freeport] is critical for this project to move forward, and we appreciate the support.”

Freeport will rebate 50% of the new incremental revenue to Freeport Housing Trust for a 30-year term. The funding will support project costs, with the Freeport Housing Trust required to maintain Varney Heights units at affordable rents for 45 years.

“The application has been reviewed by MaineHousing and vetted as consistent with state policy, so if we approve it here at the Town Hall, the state is likely to approve it as well,” said Freeport Development Director Brett Richardson during the May 6 council meeting.

Freeport Housing Trust is leveraging Freeport TIF funding with MaineHousing grants and loans, low-income housing tax credits, and direct investment by Freeport Housing Trust to fund the nearly $16 million project. Construction costs are slightly over $12 million.

“We’re thrilled to support the new opportunity for local elders to live near all the amenities that Downtown Freeport has to offer,” said Freeport Town Manager Sophie Wilson. “Varney Heights Senior Apartments will be a wonderful addition to our community.”

Freeport Housing Trust owns 183 apartments across eight properties in Freeport, including the recently completed rehab of Quarry Ridge across the street from Bow Street Market.