Housing (Affordable Housing)

LD 901 requires the Maine State Housing Authority to negotiate purchasing the Bangor Mall property in Bangor within 12 months. If purchase negotiations fail, the Authority may use eminent domain to acquire the property. Within six months of acquisition, the Authority must report on conversion costs and propose legislation creating the Bangor Mall Housing Authority, which would develop affordable housing units (1-3 bedrooms) for residents earning 2-4 times the federal poverty level. The bill appropriates $25 million for the purchase and infrastructure improvements. This directly affects the mall's current owners and aims to transform the property into affordable housing.

LD 381 allows Maine homeowners to transfer the remaining balance and interest rate of their existing mortgage to a new primary residence, directly affecting those buying or selling homes. To qualify, homeowners must maintain good payment history, meet lender underwriting standards, and complete the transfer within six months of selling their previous home. The bill requires lenders to transfer the original loan terms to the new property, while any additional funds needed for the new home must be financed at current market rates - though lenders must offer a blended interest rate option. This aims to reduce costs for homeowners moving within the state, promoting housing affordability without altering existing mortgage terms.

This bill updates Maine's growth management laws to enhance housing affordability, infrastructure development, and environmental protection. It amends key definitions - such as setting "affordable housing" at 80% of area median income - and adds new funding categories for mixed-use housing projects, bicycle/pedestrian infrastructure, and public utility systems. The bill also revises program goals to prioritize affordable housing for low/moderate-income households, protect water resources, and support marine industries. These changes directly affect Maine municipalities implementing growth management plans and state agencies overseeing land use and housing policies.

This bill proposes a $100 million state bond issue to fund Maine's housing programs, requiring voter approval through a referendum. If approved, the funds would support the Maine State Housing Authority's rural rental program ($35 million), low-income housing tax credits ($35 million), affordable homeownership ($15 million), and home repair grants ($15 million). Twenty percent of funding for the rural rental, tax credit, and homeownership programs must be used for modular construction projects. The bond proceeds would be repaid through state general funds, with unused balances after 10 years allocated to retire other state bonds.

This bill allows Maine development districts (tax increment financing districts) to extend their tax increment financing periods by up to 20 additional years beyond the standard 30-year limit, provided they use at least 75% of the tax increment revenue for affordable housing or transit-oriented development projects. It defines "affordable housing" as housing for households earning no more than 120% of the area median income (per HUD standards) and clarifies that "transit-oriented development" includes projects linking housing and other uses with transit facilities, without requiring them to be located in designated transit districts. Municipalities meeting these conditions can extend their districts' tax increment financing periods, supporting longer-term development focused on housing access and transit connectivity.