An Act To Reduce Foreclosures
Maine Legislature, Session 123, LD 1244
Committee: Business, Research and Economic Development
Sponsors: BROMLEY
Amends: 30-A MRSA §4722

Legislative Document 
No. 1244 
S.P.430 
March 8, 2007 
An Act To Reduce Foreclosures 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator BROMLEY of Cumberland. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRS A §4722, sub-§l, ~Z, as amended by PL 2005, c. 644, §2, is 
further amended to read: 
Z. 
Condition approval of funding of a housing project upon an applicant's 
compliance with municipal health, safety and sanitation standards. The Maine State 
Housing Authority may condition approval of funding for a housing project upon a 
municipality's representation that the applicant, an affiliate of the applicant or any 
owner controlled by the applicant has no record of a material municipal code 
violation of health, safety or sanitation standards; aOO 
Sec. 2. 30-A MRSA §4722, sub-§l, ~AA, as enacted by PL 2005, c. 644, §3, is 
amended to read: 
AA. Certify transfers of multifamily affordable housing property that qualify for the 
deduction under Title 36, section 5122, subsection 2, paragraph W or Title 36, section 
5200-A, subsection 2, paragraph Q. The affordability restrictions that apply under 
this paragraph must be contained in a declaration signed by the transferee and 
recorded in the appropriate registry of deeds at the time of the sale or transfer. 
(1) 
For the purposes of this paragraph, "multifamily affordable housing 
property" means a decent, safe and sanitary dwelling, apartment building or other 
living accommodation that includes at least 6 units, that meets at least one of the 
following affordability restrictions and for which those affordability restrictions, 
as applicable, expire in 10 years or less from the date of the sale or transfer of the 
property: 
(a) At least 20% of the units have restricted rents affordable to households 
earning no more than 80% of the area median income as determined by the 
United States Department of Housing and Urban Development; 
(b) The property is assisted by the United States Department of Housing and 
Urban Development, the United States Department of Agriculture or the 
Maine State Housing Authority; or 
(c) The property qualifies for low-income housing credits under the United 
States Internal Revenue Code of 1986, Section 42. 
(2) For the purposes of this paragraph, property does not qualify as multifamily 
affordable housing property unless: 
(a) The transferee agrees to maintain the property as multifamily affordable 
housing property for an additional 30 years from the scheduled expiration; 
(b) 
If the existing federal, state or other assistance is not available to 
maintain the property as multifamily affordable housing property, the 
transferee agrees to ensure that J 12 of the units are affordable to persons at 
60% of the area median income as determined by the United States 
Department of Housing and Urban Development for 30 years from the 
expiration of the then-existing affordability restrictions; or 
Page I - 123LRI743(OI)-1 
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(c) The transferee agrees to an alternative affordability agreement approved 
by the Maine State Housing Authority7; and 
Sec. 3. 30-A MRSA §4722, sub-§l, ~B is enacted to read: 
BB. Make a loan or contract with a financial institution to make a loan on behalf of 
the Maine State Housing Authority to payoff an existing loan on a single-family 
residence to assist a homeowner who is in default of the existing loan and in danger 
of losing the residence through foreclosure. 
SUMMARY 
This bill gives the Maine State Housing Authority the power to make a loan or enter 
into a contract with a financial institution to make a loan on behalf of the Maine State 
I I 
HOllsing Authority to payoff an existing loan on a single-family residence to assist a 
homeowner who is in default of the existing loan and in danger of losing the residence 
through foreclosure.