An Act To Encourage Availability of Genuinely Affordable Housing in High-cost Markets
Maine Legislature, Session 123, LD 1773
Committee: Business, Research and Economic Development
Sponsors: HINCK, SCHNEIDER, BRAUTIGAM, EMERY, FAIRCLOTH, PERRY, TUTTLE, BOWMAN, RA YE, STRIMLING
Amends: 30-A MRSA §4301, 30-A MRSA §4408

Legislative Document 
No. 1773 
H.P. 1240 
House of Representatives, March 28, 2007 
An Act To Encourage Availability of Genuinely Affordable Housing 
in High-cost Markets 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representative HINCK of Portland. 
Cosponsored by Senator SCHNEIDER of Penobscot and 
1ll~/J1·~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BRAUTIGAM of Falmouth, EMERY of Cutler, FAIRCLOTH of Bangor, 
PERRY of Calais, TUTTLE of Sanford, Senators: BOWMAN of York, RA YE of Washington, 
STRIMLING of Cumberland. 
Primed on rel.."}"=led paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §4301, sub-§6-D is enacted to read: 
6-D. Housine affordability index. "Housing affordability index" means the ratio 
calculated by the Maine State Housing Authority under section 4408 of a price of a home 
that is affordable for a household with a labor market's median income to the median 
home price for the labor market. 
Sec. 2. 30-A MRSA §4408 is enacted to read: 
§4408. Affordable units 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Affordable unit" means a housing unit of at least 2 bedrooms for which the 
monthly base rental or monthly payment for a 30-year, fixed mortgage is no more 
than 2.85% of the median household income for that labor market as determined bv 
the Maine State Housing Authority. 
2. Affordable units. If a subdivision of more than 5 housing units or lots is proposed 
in a labor market that has a housing affordability index of less than 0.88, the developer of 
the subdivision shall dedicate as an affordable unit at least 10% of the units or lots, but 
not less than 1, of the subdivision. 
3. Maine State Housine Authority to calculate housine affordability index. The 
Maine State Housing Authority section for each labor market in the State shall calculate 
and publish annually the housing affordability index. 
4. Enforcement. The Attorney General shall enforce the provisions of this section. 
A person who violates this section commits a civil violation for which a fine of twice the 
difference between the sale price of a housing unit and the sale price of the housing un it if 
the unit had been built as an affordable unit. 
If the person in violation owns the 
subdivision as rental property, the court shall order the subdivision to conform to this 
section. A person found liable under this subsection shall pay the reasonable costs and 
attorney's fees for enforcement of this section. 
SUMMARY 
This bill creates the definition of "housing affordability index," which is the ratio of a 
price of a home that is affordable for a household with a labor market's median income to 
the median home price for the labor market, calculated by the Maine State Housing 
Authority. This bill requires a developer of a subdivision of more than 5 housing units in 
a labor market that has an affordability index ofless than 0.88 to dedicate at least 10% or 
one of the units as affordable units. This bill requires the Attorney General to enforce the 
provisions of this bill, with a person in violation committing a civil violation for which a 
fine of twice the profit the person made by not making the units affordable if the person 
Page I - 123LR0892(OI)-1 
sells the units or allowing the court to order the property to conform to the provisions of 
this bill if the units are rental units still in the possession of the person.