An Act to Expand the Use of Tax Increment Revenue for Affordable Housing by Adding Authorized Project Costs

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132nd MAINE LEGISLATURE
FIRST SPECIAL SESSION-2025
Legislative Document No. 1657
H.P. 1098 House of Representatives, April 15, 2025
An Act to Expand the Use of Tax Increment Revenue for Affordable
Housing by Adding Authorized Project Costs
Reference to the Committee on Housing and Economic Development suggested and
ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative KUHN of Falmouth.
Cosponsored by Representatives: ANKELES of Brunswick, GERE of Kennebunkport, LEE of
Auburn, MASTRACCIO of Sanford, MURPHY of Scarborough, O'HALLORAN of Brewer,
SACHS of Freeport.

Page 1 - 132LR1141(01)
1Be it enacted by the People of the State of Maine as follows:
2Sec. 1. 30-A MRSA §5225, sub-§1, ¶A, as amended by PL 2021, c. 261, §§2 to
3 4, is further amended by amending subparagraph (9) to read:
4 (9) Costs associated with the development, sale, purchase, improvement, financial
5 support and operation of housing, including, but not limited to, authorized project
6 costs for improvements as described in section 5249 even if such improvements
7 are not made within an affordable housing development district as defined in
8 section 5246, subsection 2;
9Sec. 2. 30-A MRSA §5225, sub-§1, ¶B, as amended by PL 2021, c. 261, §5, is
10 further amended by amending subparagraph (4) to read:
11 (4) Authorized project costs for improvements as described in section 5249 and
12 the development, sale, purchase, financial support and operation of affordable
13 housing in support of municipal economic development activities and workforce
14 recruitment and retention efforts regardless of whether such costs are within an
15 affordable housing development district as defined in section 5246, subsection 2;
16Sec. 3. 30-A MRSA §5225, sub-§1, ¶C, as amended by PL 2023, c. 142, §§1 to
17 3, is further amended by amending subparagraph (11) to read:
18 (11) Costs associated with the development, sale, purchase, improvement,
19 operation and financial support of:
20 (a) Affordable housing in the municipality or plantation to serve ongoing
21 economic development efforts, including, but not limited to, workforce
22 recruitment and retention and the further development of the downtown tax
23 increment financing districts; and
24 (b) Housing programs and services to assist those who are experiencing
25 homelessness in the municipality or plantation as defined in the municipality's
26 or plantation's development program; and
27 (c) The creation, maintenance and administration of a municipal loan or grant
28 program to provide assistance to qualifying purchasers of affordable housing
29 subject to the terms and conditions determined by the municipality establishing
30 the municipal loan or grant program, as long as the affordable housing for
31 which the loan or grant program funds will be used supports economic
32 development and workforce recruitment and retention efforts within the
33 municipality; and
34Sec. 4. 30-A MRSA §5249, sub-§1, ¶A, as amended by PL 2013, c. 312, §4, is
35 further amended by amending subparagraph (11) to read:
36 (11) Operating costs, including but not limited to property management and
37 administration, utilities, routine repairs and maintenance, insurance, real estate
38 taxes and funding of a projects capital reserve account; and
39Sec. 5. 30-A MRSA §5249, sub-§1, ¶B, as enacted by PL 2003, c. 426, §1, is
40 amended by amending subparagraph (4) to read:
41 (4) Costs to establish permanent housing development revolving loan funds or
42 investment funds. ; and
Page 2 - 132LR1141(01)
1Sec. 6. 30-A MRSA §5249, sub-§1, ¶C is enacted to read:
2 C. Costs to establish a municipal loan or grant program to provide assistance to
3 qualifying purchasers of affordable housing subject to the terms and conditions
4 determined by the municipality establishing the municipal loan or grant program.
5 Notwithstanding any provision of this section or section 5225, subsection 1 to the
6 contrary, the use of tax increment revenue for the purposes of this paragraph does not
7 require that affordable housing purchased with the use of municipal loan or grant
8 program funds authorized by this paragraph be:
9 (1) Located within an affordable housing development district or tax increment
10 financing district; or
11 (2) Directly related to or made necessary by the establishment or operation of any
12 such district.
13SUMMARY
14 This bill expands the use of tax increment revenue for affordable housing by adding
15 authorized project costs, including costs for the development, sale, purchase, financial
16 support and operation of affordable housing and for the creation, maintenance and
17 administration of a municipal loan or grant program to provide assistance to qualifying
18 purchasers of affordable housing.
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