$250k for Deer Isle senior apartments clears legislative hurdle
Funding aimed at converting Island Nursing Home into senior apartments now headed for Governor’s desk
A bedroom at HomePort’s model unit. Photo courtesy of HomePort.
April 14, 2026
By staff
AUGUSTA–A bill to provide $250,000 for the redevelopment of the former Island Nursing Home, now known as HomePort, into affordable senior housing is now on the desk of Gov. Janet Mills awaiting her signature.
The funding received approval from the Legislature’s Appropriations and Financial Affairs Committee and was enacted in the House and Senate Monday. It was sponsored by Rep. Holly Eaton, a Democrat from Deer Isle.
“Senior housing in Hancock County is desperately needed,” Eaton said in a press release. “This effort has been in the works for well over a year, and the funding in this bill will go a long way to support this project.”
The bill proposes a one-time appropriation of $250,000 to the Maine State Housing Authority to support the redevelopment. The funding will support renovations, which are expected to cost roughly $2 million, and will also help leverage additional private and federal investments, according to the release. The bill specifies that the apartments cannot be rented to tenants whose income exceeds 80 percent of the area median income.
The US Census estimates median income for the town of Deer Isle at $62,284.
The Island Nursing Home first opened in 1983 with 50 skilled and residential care beds and expanded to 70 beds in the late 1990s. It closed in October 2021 and tried to reopen as a residential care facility, “but ultimately did not due to significant barriers,” the release said.
Eaton introduced the bill at the request of Skip Greenlaw, who serves as vice president of the board of directors for the Island Nursing Home. In his testimony to the Legislature, Greenlaw stated that work was underway to convert two patient rooms into an apartment, and that he anticipates a total of 23 units.
The bill now heads to the governor’s desk.
Eaton, who is serving her second term as a state lawmaker, represents the communities of Brooklin, Deer Isle, Eagle Island Township, Frenchboro, Southwest Harbor, Stonington, Swan’s Island, Tremont, Isle au Haut and Vinalhaven. She serves as a member of the Marine Resources Committee and the Transportation Committee.
