An Act to Establish a Municipal Affordable Housing Development District Tax Increment Financing Program LR0787(02)
Maine Legislature, Session 121, LD 0858
Committee Amendment CA_A_H412 (House)
Amends: 36 MRSA §305

COMMITTEE AMENDMENT "~,, to H. P • 635, 
Act 
To 
Establish 
a 
Municipal 
Affordable 
District Tax Increment Financing Program" 
L.D. 858, Bill, "An 
Housing 
Development 
Amend the bill in section 1 in that part designated "§5247." 
in subsection 3 in paragraph E in the last line (page 4, line 40 
in L.D.) by striking out the following: 
"5 years" and inserting 
in its place 
the 
following: 
'10 
years 
for 
single-family, 
owner-occupied units and 30 years for rental units' 
Further amend the bill in section 1 in that part designated 
"§5247." in subsection 3 
by inserting after paragraph F 
the 
following: 
'G. 
The 
district 
must 
be 
primarily 
a 
residential 
development on which at least 33% of the dwelling units are 
affordable housing and that may be designed to be compact 
and walkable 
and to include internal open space. 
other 
common open space and one or more small-scale nonresidential 
uses of service to the residents of the development.' 
Further amend the bill in section 1 in that part designated 
"§5249." in subsection 1 in paragraph B in subparagraph (3) in 
the 3rd line (page 8, line 29 in L.D.) by inserting after the 
following: 
"used 
for" 
the 
following: 
'funding 
public 
kindergarten to grade 12 costs and' 
Further amend the bill by inserting after section 1 the 
following: 
Page l-LR0787(2) 
COMMITTEE AMENDMENT 
., 
: .... 
~ 
'. 
COMMITTEE AMENDMENT "ft' to H.P. 635, L.D. 858 
'Sec. 2. 36 MRSA §305, sub-§ 1, as amended by PL 1995, c. 462, 
Pt. A, §67, is further amended to read: 
1. 
Just value. 
Certify to the Secretary of State before 
the first day of February the equalized just value of all real 
and personal property in each municipality and unorganized place 
that is subject to taxation under the laws of this State, except 
that percentage of captured assessed value located within a tax 
increment 
financing district that 
is 
used 
to 
finance 
that 
district's development plan, the captured assessed value located 
within a municipal affordable housing development district and 
the valuation amount by which the current assessed value of 
commercial and industrial property within a municipal incentive 
development zone, 
as determined in Title 30-A, 
section 5284, 
exceeds the assessed value of commercial and industrial property 
within the zone as of the date the zone is approved by the 
Commissioner of Economic and Community Development, known in this 
subsection as the "sheltered value," up to the amount invested by 
a 
municipality 
in 
infrastructure 
improvements 
under 
an 
infrastructure improvement plan adopted pursuant to Title 30-A, 
section 
5283. 
The 
equalized 
just 
value 
must 
be 
uniformly 
assessed in each municipality and unorganized place and be based 
on 100% of the current market value. It must separately show for 
each municipality and unorganized place the actual or estimated 
value of all real estate that is exempt from property taxation by 
law or is the captured value within a tax increment financing 
district that is used to finance that district's development 
plan, 
as 
reported 
on 
the 
municipal 
valuation 
return 
filed 
pursuant to section 383, or that is the sheltered value of a 
municipal incentive development zone. 
The valuation as filed 
remains in effect until the next valuation is filed and is the 
basis for the computation and apportionment of the state and 
county taxes;' 
SUMMARY 
This 
amendment 
provides 
that 
the 
affordable 
housing 
development program must require the ongoing affordability for at 
least 10 years for owner-occupied units and 30 years for rental 
units. 
The amendment adds a requirement that the development be 
primarily a residential development on which at least 33% of the 
dwelling units are affordable and provides that captured assessed 
value located within an affordable housing development district 
must be excluded from a municipality's state valuation. 
FISCAL ~OTE REQURED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Revised: 05115/03 ;t;yac:::.. 
Office of Fiscal and Program Review 
LD858 
An Act to Establish a Municipal Affordable Housing Development 
District Tax Increment Financing Program 
LR0787(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
This legislation provides that the captured assessed value for an affordable housing development district be excluded 
from a municipality's state valuation if a tax incrementing financing program is approved by a municipality. This 
measure will result in the amount of state subsidy that a local school unit is to receive not being affected by the 
addition of an affordable housing development district to a municipality. Any additional costs to the Maine State 
Housing Authority can be absorbed utilizing existing budgeted resources. 
LR0787(2) - Fiscal Note - Page 1 of 1