An Act To Stimulate the Maine Economy by Making Funds Available to First-time Home Buyers To Allow Them To Take Advantage of the Federal First-time Home Buyer Tax Credit (AFTER DEADLINE)
Maine Legislature, Session 124, LD 1483
Committee: Appropriations and Fiqancial Affairs
Sponsors: CLEARY
Amends: 5 MRSA §135

. Legislative Document 
No. 1483 
H.P. 1036 
House of Representatives, May 28, .2009 
An Act To Stimulate the Maine Economy by Making Funds 
Available to First-time Home Buyers To Allow Them To Take 
Advantage of the Federal First-time Home Buyer Tax Credit 
(AFTER DEADLINE) 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative COlllcil pursuant to Joint Rule 
205. 
Reference to the Committee on Appropriations and Fiqancial Affairs suggested and ordered 
printed. 
Presented by Representative CLEARY of Houlton. 
Printed on recycled paper 
71/~ 
1/1. 77!!I£~ 
MILLICENT M. MacF ARLA.ND 
Clerk 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and' 
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Whereas, the Federal Government has provided a federal' housing tax credit for 
first-time home buyers; and' 
Whereas, the best and most efficienfuse of the federal housing tax credit for first7 
time home buyers is for the funds to be, available to home buyers at or near the time of 
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closing; and 
Whereas, the use of the federal housing tax credit for first-time home buyers will 
assist families with home ownershi'p and stimulate the State's economy; and 
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Whereas, the federal housing tax credit for first-time home, buyers must be used, 
prior to December 1, 2009; and 
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Whereas, in the judgment of the LegIslature, these facts create an emergency within 
the meaning of the Constitution c'f Maine and require the following legislation as 
immediately necessary for the presl'i'vation of the public peace, health and safety; now, 
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therefore, 
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Be iteriactedby the People ofthe State of Maine as follows: 
Sec. 1. 5 MRSA §135, as amended by PL 2005, c. 386, Pt. CC, §2, is further, 
amended by adding at the end a new paragraph to read: 
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The Treasurer of State may deposit an amount not to exceed $4.000,000 in each 
calendar year with responsible financial institutions authorized to do business in the State 
at a rate of return not more than 2% per year below the rate of return otherwise obtainable 
had the funds been invested with such financial institutions for a similar term, as 
determined by the Treasurer of State, for periods not to exceed one year, as long as each -
such financial institution covenants with the Treasurer of State as .a condition of the 
deposit to loan an amount at least equal to the amount so deposited with the financial 
institution. by the Treasurer of State under this paragraph for the purpose of providing a 
bridge loan for first-time home buyers for home energy improvements or down payment 
assistance in order that first-time home buyers may take advantage of the federal housing 
tax credit for first-time home buyers. All the loans must be at interest rates that are below 
the interest rates the loans would have borne under existing market conditions and loan 
standards of the fimi.ncial institution but for the deposit by the Treasurer of State under 
this paragraph, and the interest rates must fully reflect the savings to the financial 
institution due to, the' reduced interest. rate paid on the deposit. Notwithstanding any 
provisions of this section to the contrary, the Treasurer of State is not obligated to seek 
competitive bids for investments or deposits pursuant to this paragraph: The Maine State 
Housing Authority shall provide assistance to the Treasurer of State in implementing this 
paragraph. For purposes of this paragraph, "home energy improvement" means a repair or 
improvement pursuant to an energy audit for the home purchased. The Treasurer of State 
shall adopt routine technical rules pursuant to chapter 375. subchapter 2-A to implement 
this paragraph. In adopting these rules. the Treasurer of State' shall' consider criteria 
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targeting loans for' those borrowers qualifying for the federal housing tax credit for first-
time home buyers and may establish limits on deposits to anyone financial institution and 
limits on deposits supporting loans to anyone borrower. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill allows the Treasurer of State to deposit lip to $4,000,000 with financial 
institutions in the State at a reduced rate of return and require those financial institutions 
to provide bridge loans to first-time home buyers for the purpose of making home energy 
improvements or down payment assistance to allow those first-time home buyers to take 
advantage of the federal housing tax credit for firsHime home buyers.