An Act To
Maine Legislature, Session 126, LD 1218
Committee Amendment CA_A_H307 (House)
Amends: 30-A MRSA §5246, 30-A MRSA §5247, 30-A MRSA §5248, 30-A MRSA §5249, 30-A MRSA §5250-D

COMMITTEE AMENDMENT "A" to H.P. 863, L.D. 1218, Bill, "An Act To 
Amend the Law Regarding Affordable Housing Tax Increment Financing" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 30-A MRSA §5246, sub-§12, as enacted by PL 2003, c. 426, § 1, is 
amended to read: 
12. Original assessed value. "Original assessed value" means the assessed value of 
an affordable housing development district as of March 31 st of the tax year preceding the 
year in which it was designated, and, for affordable housing development districts 
designated on or after April 1, 2014, "original assessed value" means the taxable assessed 
value of an affordable housing development district as of March 31st of the tax year 
preceding the year in which it was designated by the municipality or plantation. 
Sec. 2. 30-A MRSA §5247, sub-§3, ~~D and F, as enacted by PL 2003, c. 426, 
§ 1, are repealed. 
Sec. 3. 30-A MRSA §5248, sub-§2, ~G, as enacted by PL 2003, c. 426, § 1, is 
amended to read: 
G. The duration of the program, which may start during any tax year specified in the 
approval of the affordable housing development program by a municipal legislative 
body, except that the program may not exceed 30 years Hom the date of desigHatioH 
of the distriet after the tax year in which the designation of the district is approved by 
the director as provided in section 5250, subsection 3; and 
Sec. 4. 30-A MRSA §5249, sub-§I, ~A, as enacted by PL 2003, c. 426, §1, is 
amended to read: 
A. Costs of improvements made within the affordable housing development district, 
including, but not limited to: 
(1) Capital costs, including, but not limited to: 
COMMITTEE AMENDMENT 
~ 
,,~ o-V: 
COMMIITEE AMENDMENT "~,, to H.P. 863, L.D. 1218 
(a) 
The acquisition of land or construction of public infrastructure 
improvements for affordable housing development; 
(b) 
The demolition, alteration, remodeling, repair or reconstruction of 
existing buildings, structures and fixtures; 
(c) Site preparation and finishing work; and 
(d) All fees and expenses that are eligible to be included in the capital cost of 
such improvements, including, but not limited to, licensing and permitting 
expenses and planning, engineering, architectural, testing, legal and 
accounting expenses; 
(2) Financing costs, including, but not limited to, closing costs, issuance costs 
and interest paid to holders of evidences of indebtedness issued to pay for project 
costs and any premium paid over the principal amount of that indebtedness 
because of the redemption of the obligations before maturity; 
(3) Real property assembly costs; 
(4) 
Professional service costs, including, but not limited to, licensing, 
architectural, planning, engineering and legal expenses; 
(5) Administrative costs, including, but not limited to, reasonable charges for the 
time spent by municipal employees in connection with the implementation of an 
affordable housing development program; 
(6) Relocation costs, including, but not limited to, relocation payments made 
following condemnation; 
(7) Organizational costs relating to the establishment of the affordable housing 
district, including, but not limited to, the costs of conducting environmental 
impact and other studies and the costs of informing the public about the creation 
of affordable housing development districts and the implementation of project 
plans; 
(8) Costs of facilities used predominantly for recreational purposes, including, 
but not limited to, recreation centers, athletic fields and swimming pools; ami 
(9) 
Costs for child care, including finance costs and construction, staffing, 
training, certification and accreditation costs related to child care located in the 
affordable housing development district; ami 
(lO) Costs of case management and support services; and 
(11) Operating costs, including but not limited to property management and 
administration, utilities, routine repairs and maintenance, insurance, real estate 
taxes and funding of a projects capital reserve account; and 
Sec. 5. 30-A MRSA §5250-D, as enacted by PL 2003, c. 426, § 1, is amended to 
read: 
COMMITTEE AMENDMENT 
c., 
0« -
~ 1 
COMMITTEE AMENDMENT"~" to H.P. 863, L.D. 1218 
§5250-D. Bond financing 
The legislative body of a municipality may authorize, issue and sell bonds, including 
but not limited to general obligation or revenue bonds or notes, that mature within 2(} 30 
years from the date of issue to finance all project costs needed to carry out the affordable 
housing development program within the affordable housing development district. The 
municipal officers authorized to issue the bonds or notes may borrow money in 
anticipation of the sale of the bonds for a period of up to 3 years by issuing temporary 
notes and notes in renewal of the bonds. All revenues derived under section 5250-A 
received by the municipality are pledged for the payment of the activities described in the 
affordable housing development program and used to reduce or cancel the taxes that may 
otherwise be required to be expended for that purpose. The notes, bonds or other forms 
of financing may not be included when computing the municipality's net debt. Nothing in 
this section restricts the ability of the municipality to raise revenue for the payment of 
project costs in any manner otherwise authorized by law.' 
SUMMARY 
This amendment replaces the bill with the following changes. 
1. It provides that the municipal vote becomes the effective original assessed value 
date and allows flexibility in the review and approval of an affordable housing 
development district by the Maine State Housing Authority. 
2. 
It eliminates the adjusted $50,000,000 cap on bonded indebtedness for the 
affordable housing development districts within a county and the requirement that 
acquisition, construction and property improvements included within the affordable 
housing development program financed by municipal bonded indebtedness must be 
completed within 5 years ofthe approval of a district. 
3. It clarifies the duration of an affordable housing development program. 
4. It includes operational costs, in addition to the costs of case management and 
support services provided for in the bill, in the authorized project costs allowable for 
financing under an affordable housing tax increment financing program. 
5. It expands from 20 years to 30 years the allowable maturation period for bonds 
issued by the legislative body of a municipality or plantation to finance the cost of an 
affordable housing development program within an affordable housing development 
district. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/16/13 
~ae 
LD 1218 
LR 1907(02) 
An Act To Amend the Law Regarding Affordable Housing Tax Increment Financing 
Fiscal Note for Bill .s Amended by Committee Amendment ~ (j-/ '-.3 D 1\ 
Committee: Taxation 
') 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
Any additional costs incurred by Maine State Housing Authority related to reviewing the costs of case management 
and support services to determine eligibility under an affordable housing tax increment fmancing program can be 
absorbed within existing budgeted resources. 
LRI907(02) - Fiscal Note - Page 1 of 1