Maine Gov. Janet Mills has signed legislation to create a state affordable housing tax credit.
The refundable credit, which would be administered by the Maine State Housing Authority, would be available to individuals or corporations who invest in affordable housing. The program would be capped at $10 million per year for eight years, with portions earmarked for senior housing and rural housing. It would also leverage an equal amount of federal low-income housing tax credit dollars, according to a statement from the governor’s office.
The bill was sponsored by Ryan Fecteau, House assistant majority leader (D-Biddeford).
“This law is the result of strong collaboration. Our bipartisan group of cosponsors worked closely with the Maine Affordable Housing Coalition, contractors, residents of affordable housing properties, mayors, and more to make sure we addressed the significant need for affordable housing across our state,” said Fecteau. “As a result of our working together, the rate of production will increase, we’ll take advantage of important federal dollars, and more Mainers will get the housing they need and deserve.”
Under the legislation, 10% of the credits must be set aside for the preservation of affordable housing that was constructed with financial assistance from the U.S. Department of Agriculture, Office of Rural Development, and the Rural Housing Service. At least 30% must be allocated to the construction or adaptive reuse of buildings for senior housing, and at least 20% must be used for affordable housing in rural areas.
As the affordable housing crisis grows, other states are also looking at creating a state credit to help developers finance new development. Legislation has recently been introduced or other steps have been taken to pursue state housing credit programs in Indiana, Kentucky, Maryland, and Virginia.
