ARPA Housing Project
Background
In June 2023, the Lincoln County Commissioners voted to allocate $1.5 million of American Rescue Plan funds for the creation of Lincoln County's 'Affordable Housing Investment Process.' This allocation begins the implementation of the Lincoln County Housing Needs Assessment, published in May 2023. Five projects were funded across the county, but with the deadline of December 31, 2026 to expend all funds, the County opened up pathways for financial assistance to communities for planning-specific work.
As a Plantation, Monhegan falls under the jurisdiction of the Maine Land Use Planning Commission (LUPC), which serves as the planning and zoning authority for the island. There are pathways towards amending Monhegan general ordinances--such as land use zoning--through LUPC, and as the community grapples with housing insecurity these paths must be explored.
With this new funding available for municipal planning, Monhegan Plantation submitted a Letter of Interest to Lincoln County on August 16, 2024. The Plantation's goal was to engage a consultant to collaborate with the Plantation and Monhegan Associates to accomplish the following:
- Identify potential affordable housing options on any land owned by Monhegan Associates that is determined to be buildable;
- Work with LUPC to update land use requirements, including reducing minimum lot size, so that more lots on Monhegan might become eligible for housing development.
Monhegan Plantation was awarded $50,000 for the work outlined above.
Ultimately, the Plantation's intention throughout this process is to generate materials and strategies that will be of use to Monhegan Island Sustainable Community Association (MISCA) in the pursuit of their nonprofit aims. By leveraging municipal funding sources to pursue improved land use planning, the Plantation hopes to create a development environment in which MISCA can continue to serve as a housing land trust effectively, meeting the housing needs of the year-round community.
Collaboration with MCOG
The Plantation selected Midcoast Council of Governments (MCOG) as the contractor for the housing work through a competitive bidding process. The contract period began on May 15, 2025 and will conclude in May 2026.
MCOG identified 6 individual tasks to be accomplished throughout the contract period to pursue the goals described above. These tasks are as follows:
- Existing Conditions and Housing Assets Inventory
- Community Preference and Needs Surveying
- Ordinance, Zoning, and Land Use Changes Recommendations Report
- Community Meetings Hosting for Recommendations Feedback
- Coordination with Stakeholders and LUPC for Recommendations Implementation
- Next Steps Planning -- Housing Development Funding Strategies
The goal of these combined efforts is to set the stage for future housing work on the island.
As part of this funding period, the Plantation and MCOG hosted a series of community workshops. Before the third workshop, MCOG provided some resources to the community to help prepare for an informed discussion. These materials are provided below.
Monhegan Housing Survey - Results Summary Final
Maine Plantation - Town Guidance
Monhegan Housing Existing Conditions Initial Findings 9/9/25
Monhegan Housing Study - Background Workshop 3
In May 2026, MCOG submitted to the Board of Assessors the Final Recommendations Report. This report covered everything from project methods to long-term community goals identified throughout the process. They recommended the following as immediate next steps for the Plantation, MISCA, and their partners:
- Convene a housing working group. Establish a small standing group -- drawing from the Plantation Assessors, MISCA, and engaged residents -- to own implementation of this report, coordinate with partners, and maintain continuity as opportunities arise.
- Open a formal dialogue with LUPC on ADUs and small multi-family standards. Building on the constructive engagement of 2022-2023, request LUPC's assistance in drafting ADU allowances under §10.25,U and small multi-family provisions for the D-GN and D-RS subdistricts, modeled on the lighter-touch, community-guided processes LUPC has used elsewhere.
- Commission a wastewater feasibility analysis for priority lots. Engage a licensed Site Evaluator to assess the highest-leverage MISCA-held and Plantation-adjacent lots, including the suitability of advanced treatment (such as Fuji Clean) and reduced-footprint disposal (Eljen GSF), with explicit attention to aquifer protection in the P-AR subdistrict.
- Submit predevelopment funding applications. Pursue the USDA RD Water & Waste Predevelopment Planning Grant, a Coatal Community Grant for site assessment, and an Island INstitute predevelopment grant to fund the feasibility work above -- before, not after, scoping construction.
- Strengthen MISCA's development capacity. Support MISCA in evaluating CHDO certification, an Island Fellow placement or contracted project management, and a partnership with an established Maine affordable-housing developer for the first multi-unit project.
- Engage MaineHousing early and be application-ready. Open a dialogue with MaineHousing regarding the Affordable Housing Initiative for Maine Islands, recognizing that the program is intermittently funded; the Vinalhaven Housing Initiative's recent four-unit success demonstrates what an island community can achieve when it is ready to apply the moment a round opens.
- Adapt MCOG's ADU Boost model for Monhegan. Explore with MCOG's housing-policy lead whether the ADU Boost incentive structure -- already operating in Bath, Brunswick, and Rockland with State Housing Opportunity Program support -- can be adapted to lower the financing barrier for resident ADU construction on the island.
- Treat comprehensive planning as a deliberate medium-term option through LCRPC. When community readiness, volunteer capacity, and grant funding align, initiate a comprehensive planning conversation with the Lincoln County Regional Planning Commission, using the analysis and budget options in Section 5 and Appendix E as a starting point.
