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Proposed Lewiston shelter in limbo after state grant offer lapses

The fate of a proposed new 37-bed homeless shelter in Lewiston is up in the air after the city missed a deadline to receive a grant from the state.

The city was selected to receive more than $3 million from MaineHousing for the two-year shelter, which was approved by the local planning board in April.

But the project still needed full municipal approval, and the city council decided to postpone further action on it until June 20 due to what city staff described as an incomplete application.

MaineHousing Spokesperson Scott Thistle said the original deadline for approval was May 31, and that without council sign-off, even after the deadline was pushed back twice, the agency terminated the grant.

Thistle says state law requires the funds be allocated by June 30, and the agency cannot allow the funds to "just sit there unused" with so many people in need across the state.

The agency says it would be willing to reissue a grant to Lewiston if "there is another viable proposal that can be funded quickly."