An Act To Create Jobs and Improve Energy Efficiency through the Transformation of Maine's Housing Stock (EMERGENCY)
Maine Legislature, Session 124, LD 0774
Sponsors: MITCHELL, ALFOND, BARTLETT, BOWMAN, CRA YEN, RECTOR, SIMPSON, SULLIVAN, CAIN, CROCKETT, DUCHESNE, FLAHERTY, FOSSEL, WALSH INNES, MAGNAN, PINGREE, PIOTTI, SUTHERLAND, TREAT, TUTTLE
Amends: 36 MRSA §4641-B

MAINE STATE LEGISLATURE 
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,124th MAINE LEGISLATURE 
Legislative Document 
No. 774 
S.P.301 
In Senate, February 26,2009 
An Act To Create Jobs and Improve Energy Efficiency through the 
Transformation of Maine's Housing Stock 
'(EMERGENCY) 
Reference to the Committee on.Business, Research and Economic Development suggested 
and ordered printed. 
Presented by President MITCHELL of Kennebec. 
Cosponsored by Representati ve HASKELL of Portland and 
9rf)(J~ 
JOY 1. O'BRIEN 
Secretary of the Senate 
Senators: ALFOND of Cumberland, BARTLETT of Cumberhmd, BOWMAN of York, 
CRA YEN of Androscoggin, GOODALL Of Sagadahoc, MARRAC:H:E of Kennebec, RECTOR 
of Knox, SIMPSON of Androscoggin, SULLIVAN of York, Repre.seritatives:BERRYof 
Bowdoinham, CAIN of Orono, CROCKETT of Augusta, DUCHESNE of Hudson, 
FLAHERTY of Scarborough, FOSSEL of Alna, WALSH INNES of Yarmouth, MAGNAN of 
Stockton Springs, Speaker PINGREE of North Haven, PIOTTI of Unity, SUTHERLAND of 
Chapman, TREAT of Hallowell, TUTTLE of Sanford. 
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Prilll~J un I'tc),ckJ paper 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, there is an immediate need to address affordable housing needs and to 
weatherize residences in this State to meet the current economic and energy crises and 
protect the public health and welfare; and 
Wh~reas, in the jud~ent of the Legisiature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following, legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, be it 
lOBe it ena'cted by the People of the State of Maine as follows: 
' Sec. 1. 30-A MRSA c. 201, sub-c. 7-A is enacted to read: 
SUBCHAPTER 7-A 
MAINE ENERGY, HOUSING AND ECONOMIC RECOVERY 
PROGRAM 
§4861. Definitions 
As used in this subchapter, unless the context otherwise indicates,' the following 
terms have the following meanings. 
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1. Authority. "Authority" means the Maine State Housing Authority. 
2. Fund. "Fund" means the Maine Energy, Housing and Economic Recovery Fund 
established in section 4863. 
3. Program. "Program" means the Maine Energy, Housing and Economic Recovery 
Program established in section 4862. 
§4862. Maine Energy, Housing andEconomic Recovery Program 
1. Operator of program. The Maine Energy, Housing and Economic Recovery 
Program is established. The authority shall operate the program. The program may be 
operated in conjunction with other programs of the authority. 
2. Purposes of the program. The purposes of the program are to: ' 
A. 
Establish stable, reliable, long-term capital funding sources dedicated to 
providing-affordable housing for families in the State; 
B. Substantially increase the supply of housing that is affordable, safe, appropriately 
sized and located near jobs and services; 
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C. 
Improve the energy efficiency' of residential housing in the State through 
construction of new units, replacement of older substandard units and renovation of 
existing units; 
D. 
Stimulate the State's economy and create jobs through investment in the 
construction and renovation of affordable housing and the weatherization of existing 
owner-occupied housing; 
E. Replace hazardous, unhealthy and inefficient manufactured homes that do not 
meet the United States Department of Housing and Urban Development standards 
under 24 Code' of Federal Regulations, Part 3280; and 
F. Reduce the State's greenhouse gas emissions, lower dependence on foreign oil and 
ease the energy burden on households in the State by increasmg the energy efficiency 
of housing in the State. 
3. Program elements. The authority shall achieve the purposes of the program by 
applying the resources of the program to support: 
A. . Construction of multifamily affordable housing units; 
B. Renovation of affordable housing units; 
C. Weatherization of owner-occupied residences; . and 
. D. Replacement of manufactured housing units that do not meet the United States 
Department of Housing and Urban Development regulations, 24 Code of Federal 
Regulations, Part 3280. 
§4863 .. Maine Enertp', Housing and Economic Recovery Fund 
. The Maine Energy, Housing and Economic Recovery Fund is established under the 
jurisdiction and control of the authority. The fund is nonlapsing and may be invested in 
the same manner as permitted for investment of other state funds. 
1. Purposes. Money in the fund may be applied by the authority for the purposes of 
the program: 
A. To reduce the rate of interest on or the principal amount of such mortgage loans 
as the authority determines; 
B. To make mortgage loans and such other types of loans or grants as the authority 
determines; 
C. To fund reserve funds for, pay capitalized interest on, pay costs of issuance of or 
otherwise secure and facilitate the sale of the bonds issued under this subchapter; 
D. To pay the administrative costs of the program; and 
E. 'ill any other reasonable manner to support the purposes of the program. 
2. Sources of funds. The fund consists of: 
A. All money transferred to the fund pursuant to Title 36, section 4641-B, subsection 
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B. Subject to any pledge, contract or other obligation under this subchapter, any 
money the authority receives in repaYment of advances from the fund; . 
C; Subject to any pledge, contract or other obligation under this subchapter, all 
interest, dividends and pecuniary gains from the investment of money of the fund; 
and 
D. Any other money available to the authority and directed by the authority to be 
paid into the fund. 
3. Funds as security. Money in the fund may, in whole or in part, be pledged or , 
transferred· and deposited as security for and applied in payment of principal of, interest 
on or redemption premiums on bonds issued under this subchapter: 
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4. Division of fund. The authority may divide the fund into any separate accounts 
that it fmds necessary to accomplish the purposes of this subchapter: 
5. Recovery of money. To the extent permitted by hiw and to the extent it is 
economically and socially reasonable, the authority may recover amounts from any 
person on· whose behalf money from the fund has been applied to carry out this 
subchapter and may charge interest on those amounts at a rate determined by the 
authOrity. The recovery may be deferred until the sale or refinancing of the housing, the 
end of the term of the mortgage loan or any other time determined by the authority. 
Recourse for the recovery is limited to property subject to the mortgage, except in cases 
of fraud. 
§4864. Bonds 
Pursuant to its authority under this chapter,· the authority may issue revenue bonds 
from time to time, to be mown as Maine Energy, Housing and Economic Recovery Fund 
revenue bonds, to c~rry out the purposes of the program. Notwithstanding any other· 
provision of law, the authority may have in the aggregate principal amount outstanding at . 
anyone time Maine Energy, Housing and Economic Recovery Fund revenue bonds up to 
but not exceeding $200,000,000. The authority shall issue revenue bonds under this 
subchapter in an amount ofatleast $30,000,000 in fiscal year 2009-10 and an additional 
$30,000,000 in fiscal year 2010-11. 
' 
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Sec. 2. 36 MRSA §4641-B, sulb-§4, ~A, as enacted by PL2007, c. 539, Pt. WW, 
§2, is repealed ... 
Sec. 3. 36 MRSA §4641-B, sulb-§4, ~A-l is enacted to read: 
. 
A-I. In fiscal year 2009~1 0; the Treasurer of State shall: 
(I) Pay on a monthly basis 1/2 of the revenues derived from the tax imposed by 
section 4641-Asubsection I to. the Maine State Housing Authority, which shall 
deposit the funds in the Housing Opportunities for Maine Fund created in Title 
30-A, section 4853;.and' 
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(2) Pay the ~emain'ing amo~t to the Marne State Housing Authority, which shall 
deposit .the funds in the Maine Energy, Housing and Economic Recovery Fund 
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established in Title 30-A, section 4863, until the total amount paid equals 
$2,500,000, after which the Treasurer of State shall credit any remaining amounts 
to the General Fund. 
Sec. 4 .. 36MRSA§4641-B, sub-§4, ~A-2 is enacted to read: 
A-2. In fiscal year 2010-11, the Treasurer of State shall: 
(1) Pay on a monthly basis 112 of the revenues derived from the tax imposed by 
section 4641-A, subsection 1 to the Maine State Housing Authority, which shall 
deposit the funds in the Housing Opportunities for Maine Fund created in Title 
30-A, section 4853; and 
(2) Pay the remaining.amount to the Maine ·State Housing Authority, which shall 
deposit the funds in the Maine Energy, Housing and Economic Recovery Fund 
established in Title 30-A, section 4863, until the total amount paid. equals 
$5,000,000, after which the Treasurer of State shall credit any remaining amounts 
to the General Fund. 
. 
Sec. 5. 36 MRSA §4641-B, sub-§4, ~A-3 is enacted to read: 
A-3. In fiscal year 2011-12 and thereafter, the Treasurer of State shall: 
(1) Pay on a monthly basis i /2 of the revenues derived from the tax imposed by 
section 464I-A, subsection 1 to the Maine State Housing Authority, which shall 
deposit the funds in the Housilig Opportunities for Maine Fund created in Title 
30-A, section 4853; and 
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(2) Pay the remaining amount to the Maine State Housing Authority, which shall 
deposit the funds in the Maine Energy, Housing and Economic Recovery Fund 
established in Title 30-A, section 4863, until the total amount paid equals the 
amount certified by the authority pursuant to this subparagraph, after which the 
Treasurer of State shall credit any remaining amounts to the General Fund. At 
the beginning of each fiscal· year the authority shall certify to the State Tax 
Assessor the amount to be deposited in the Maine Energy, Housing and 
Economic Recovery Fund under this subparagraph. The authority shall certify 
the amount that is necessary and sufficient to meet the authority's obligations 
relating to bonds issued by or planned to be issued by the authority under Title 
30-A, section 4864: 
Emergency clause. 
In view of the emerge~cy cited in the preamble, this· 
legislation talces effect July 1, 2009. 
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SUMMARY 
This bill: 
1. Establishes within the Maine State Housing Authority the Maine Energy, HOllsing 
and Economic Recovery Program to support the construction of multifamily .affordable 
housing units; renovation of affordable housing units; weatherization of owner-occupied 
residences; and replacement of manufactured housing units that do not meet the United 
States Department of Housing and Urban Development regulations, 24 Code of Federal 
Regulations, Part 3280; 
2. Directs that a portion of the revenues derived from the real estate transfer tax be 
deposited in anew fund to provide funds for the Maine Energy, Housing and Economic 
Recovery Program. In fiscal year 2009-10, $2,500,000 is transferred to the fund, and in 
fiscal year 2010-11, $5,000,000 is transferredio the fund. 
Thereafter, amounts are 
transferred as necessary to meet the obligations of the Maine State Housing Authority 
with respect to revenue bonds issued for the Maine Energy, Housirig and Economic 
Recovery Program; and 
3. Authorizes the issuance of revenue bonds by the Maine State Housing Authority 
for the purposes of the Maine Energy, Housing and Economic Recovery Program. The 
authority may have at any time an aggregate principal amount outstanding on such bonds 
of up to but not exceeding $200,000,000. The authority is required to issue revenue 
bonds in: an amount of at least $30,000,000 in fiscal year 2009-10 and an additional 
$30,000,000 in fiscal year 2010-11 and may issue additional amounts as appropriate for 
the purposes of the program. 
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