County housing summit outlines challenges, presents solutions

A robust and useful housing stock in Washington County plays many important functions for the population's economic and cultural well-being. In the county, a network of factors is blocking the path to an increase in housing that meets all needs: an aging population; a lack of a living wage for many coupled with a significant increase in real estate prices; few to no new construction projects for affordable and workforce housing; and an increase in short‑term rentals for visitors. So explained Charles Rudelitch, executive director of the Sunrise County Economic Council (SCEC), illustrating his points as the keynote speaker for the Washington County Housing Summit: Strategies and Solutions, held on May 21 at the University of Maine at Machias campus.

The median home price in the county for 2014 was $105,000. Just over 10 years later, in 2025, it was $230,000. And while Rudelitch noted that the value of homes relative to other coastal locations is still considered "cheap," the actual versus needed income to purchase a median value home has priced many county workers out of the market. In Eastport, for example, a purchaser would need an $80,000 annual salary as opposed to the actual median income of $50,000. Buyers in Machiasport would require double the $60,000 median income, and in Lubec they would need $81,000 as opposed to the $60,000 median.

Rentals fair no better. Rudelitch explained that one‑third of the homes in the county are now seasonal, which creates more competition for year‑round housing. There are about 11,300 owner‑occupied year‑round houses and 2,886 renter‑occupied. Of the rental units, 1,372 are apartments, 1,288 are mobile homes and 226 are single homes.

"Subsidies are why we are not seeing widespread homelessness," Rudelitch said of the 530 units in the Section 515 rental program. The federal subsidy program "is the single most important action to prevent homelessness in the elderly, the young. It's an extremely effective program, but one whose future is uncertain."

Homeless count deeply flawed

For funding to help with homeless resources, the U.S. Department of Housing and Urban Development (HUD) requires a Point‑in‑Time Count of sheltered and unsheltered people experiencing homelessness. In a break‑out session during the summit, "Couch Surfing and House Hoppers: Addressing Hidden Homelessness in Our Communities," a panel identified the January‑mandated count as deeply flawed for a rural county with some of its coldest and most difficult weather taking place during that month.

The HUD count was invented with the urban homeless in mind, said Tora Johnson, an audience member and co‑director of the SCEC Sustainable Prosperity initiative. Homeless visibility is not the same in rural communities as it is in urban environments. There is a "huge amount of under‑counting" and a resulting misappropriation of resources, she said.

Healthy Acadia's Paige Johnston works with others to address housing insecurity. There is hidden homelessness that does not show up in the January count, she explained. People are unhoused but not visible. They stay in cars or in campers that are tucked away out of sight, and they couch surf.

Jace Farris, Homeless Response Service Hub coordinator with Community Health and Counseling Services, explained in a separate interview that the HUD count happens during the last 10 days of January. And when it's very cold, for those people who can find a place for "couch‑surfing," HUD does not allow any couch‑surfing adult to be included in the count. They are considered housed.  "The Point in Time count is important because that drives the funding for areas," Farris says. "So if we do not have accurate representation of our populations served, we do not receive appropriate funding to help those who need the support the most."

The last official HUD count listed between five and 10 homeless people in the county. Summit break‑out session audience members were incredulous, with Johnson noting that she knows of 10 just in her town area. Farris says, "I know there are people living deep in the woods who don't want contact. I don't believe they leave in the winter."

Farris adds that HUD will count a person as homeless if the house they live in does not have running water and safe sanitary access. "We really need permanent supportive housing; we don't have anything like that down here."

A more accurate count is being addressed at the state level by the Coordinated Entry program, says Farris. It is "a system designed to be able to have access to real time accurate data. When people are entered into Coordinated Entry, they are asked questions such as where your last permanent address or city was. This allows us to be able to track and identify where trends are. The more information we can gather and track the more we can identify what and where the gaps are within the system to be able to put funding and supports in place to help make homelessness brief and rare."

The panel also discussed the importance of educating potential landlords about the Section 515 Rural Rental Housing Program. Under the federal program, nonprofit and for‑profit entities can receive one‑percent loans for acquisition, rehabilitation or construction of rental housing. Eligible renters can use USDA housing vouchers to pay for a portion of the rent for Section 515 housing if they earn less than 80% of the median family income.

In his keynote speech, Rudelitch shared some of the local challenges to the Section 515 program. There are expansion barriers because of the lack of construction workers, who are often also working in the fishing industry during the prime summer construction months. Units that are "timed‑out," meaning they are eligible to leave the program, "may be shifting over" into the seasonal rental or home sale market. "Ten years ago, I would never have thought this would be a risk. Now it's a concern."

Short‑term rentals viewed as a positive, for now

Between Eastport, Milbridge and Lubec there are about 180 active short‑term rentals (STRs). Rudelitch noted that STRs are "very significant for a few village centers." It can create a "huge amount of churn," he said. A panel discussion about STRs included Thomas Malcolm, who, as the town of Millinocket's code enforcement officer, created a STR ordinance; Cecil Gardner of DownEast Acadia Regional Tourism; and Cynthia Beauvais, a resident of Jonesport who owns and manages 14 year‑round rentals for local residents.

All of the panelists felt that STRs are positive if managed well and could play an important role in reviving neglected properties. They agreed that STRs help to house visitors when lodging facilities are full, either at high season or during short‑term upticks caused by marathons, snowmobiling parties, festivals and more. Beauvais said, "STRs are the perfect mix for Jonesport. It helps with surges like the puffin tours, lobster races." Gardner added that there hasn't been any major investment in the county for hotel‑type structures. "The overnight visitor is a high‑impact visitor for the tourism economy. I don't see the demand going down anytime soon." He added that extreme seasonality is a barrier to attracting a hotel developer.

For Malcolm, housing safety was the reason he developed the town's STR ordinance. "There is a difference between regulation and safety," he explained. "The town ordinance is about safety for the landlord and the visitor." The police and firefighters met to determine the safety priorities that needed to be addressed through the ordinance. Stressing the safety component made sense to the selectmen, the town's property owners and the residents, he added.

However, challenges to year‑round housing are of concern, with panelists pondering the question of how to weigh the issues surrounding what happens when long‑term rentals change to short-term rentals. Beauvais and Malcolm pointed out that, for most communities in Washington County, the more pressing problem is the large inventory of vacant houses veering towards poor condition. Malcolm explained that they had the same issue in Millinocket. "We have 20 to 25 houses sitting vacant." It can be unclear who owns the property because of the lag time in mortgage and deed recordings. A property could be owned by family members scattered across the country with sentimental ties to the home but with little time and resources for upkeep and occupancy. Or, Malcolm noted, a property could be owned by someone who bought it at a low pre‑pandemic price and is waiting to cash in high. "How do we stop people from sitting on houses?" he asked.

One option, Malcolm suggested, is to encourage, through a local option tax being discussed in the legislature, the combining of long‑term and short‑term rentals. In Millinocket, "We have three units that have a combination" of the two. "The concept is to balance needs," he added. Another option would be to incentivize, possibly through tax programs or a local loan pool, the renovation of dilapidated housing into long‑term rentals.

With the population of those ages 65 and over in the county projected to double by 2042, Rudelitch noted that 6,500 of those residents will be over 75. He stressed that planning now is critical to making sure that, with those changing demographics, there is housing in place that is appropriate for elders, families, working people and a healthy economy.

More information about the county's housing summit and issues can be found at SCEC's website, <www.sunrisecounty.org>, including the videos of the summit's keynote and plenary session, which followed two affordable housing projects from start to finish.