AUGUSTA — Two years and about $4 million ago, Greentree Apartments was in shambles, physically and financially.

Mold covered many of its walls. Lack of drainage on the low-lying grounds sent water into buildings.

The 83-unit complex on New England Road was a frequent flyer in the local police log. Its tenant base was eroding, as tenants who could afford to move out, did.

And when the national economy went sour, the prospects for finding financing to fix up the low-income apartment complex seemed bleak.

“It was in a terrible state of disrepair,” said Michael Packard, vice president of operations for Weston Associates, the Boston-based firm that purchased the property in 2009. “The tenant base was in shambles, as was the physical complex itself.”

Things are looking up in the aftermath of a $4 million rehab project that included $2.1 million in 2009 federal stimulus funding.

Underground drainage now keeps water out of the buildings, which have new siding outside and new paint throughout inside.

The project also put in new roofs, windows, doors, flooring, kitchens complete with new cabinets and appliances, renovated bathrooms and increased accessibility for tenants with disabilities.

Only four of the 83 units are vacant, according to Laura Buzzard, property manager.

And Packard said Weston’s management conducts a higher level of screening, looking to keep criminals out of the complex, so families there can feel safe.

Deputy Police Chief Jared Mills confirms Augusta police have been called to the complex less often since Weston took over management from the previous owner, a Rhode Island-based firm.

In 2008, Augusta police responded to Greentree 114 times for complaints involving suspicious or criminal activity. In 2009, that number went down to 104, and last year it dropped to 80.

So far this year, Mills said police have responded to 70 calls at that location.

“It has improved, overall,” Mills said. “I believe this company has done a good job in their selection process for tenants. This, in turn, has lowered our overall calls for service at this location, allowing us to focus our efforts” elsewhere in the city.

The project was one of the first housing developments in the country to receive funds under the exchange portion of the American Recovery and Reinvestment Act, also known as the stimulus package.

In exchange for receiving $2.1 million in federal funding for the project, the developer traded in federal low-income housing tax credits for which the project was eligible, but which had proved a tough sell to investors.

The funding came from a $4.1 million federal grant to MaineHousing, the quasi-governmental agency whose mission is to make housing more affordable in Maine.

The agency currently is involved in 13 housing projects in the state, involving 300 jobs, according to Director Dale McCormick.

At an event Wednesday highlighting the renovations, McCormick said the project wouldn’t have happened in the current economy without stimulus funds.

She said she knew the complex was in rough shape and deteriorating rapidly, in part because she saw mold on the walls of the bathroom of a unit while visiting a friend there. But she said MaineHousing, which serves as a bank for housing projects, had been unable to find enough financing help until the stimulus funds were secured.

She said overall the project, including the purchase price of the complex, construction and cost of architectural and engineering work, totaled $7.85 million.

“This has been one of the more challenging projects MaineHousing has taken on,” she said. “We couldn’t let 83 units of affordable housing in Augusta just melt into the ground.”

Rent rates at the Section 8 subsidized housing complex are determined by tenants’ income, and can be adjusted up or down, as that income changes, Buzzard said.

The units include water and sewer as part of the rent.

But they have electric baseboard heat, and electricity — one of the pricier methods of heating — is not included in the rent. A new community building was added to the site as part of the project, which temporarily employed 75 workers.

Keith Edwards — 621-5647

[email protected]