An Act To Protect the Elderly from Tax Lien Foreclosures
Maine Legislature, Session 128, LD 1629
Committee Amendment CA_A_H771 (House)
Amends: 36 MRSA §942, 36 MRSA §943-C

COMMITTEE AMENDMENT "A,, to H.P. 1124, L.D. 1629, Bill, "An Act To 
Protect the Elderly from Tax Lien Foreclosures" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Protect Homeowners Affected by Tax Lien Foreclosure' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §942, as amended by PL 2009, c. 489, §§2 and 3, is further 
amended by inserting after the 4th paragraph a new paragraph to read: 
Within 30 days after recording a tax lien certificate in the registry of deeds for 
property that constitutes a homestead for which a property tax exemption is claimed 
under subchapter 4-B, the municipal treasurer shall provide written notice to the person 
named on the tax lien mortgage that that person may be eligible to file an application for 
tax abatement under section 841, subsection 2. indicating that the municipality. upon 
request. will assist the person in requesting an abatement and provide information 
regarding the procedures for making such a request. The notice must also indicate that 
the person may seek assistance from the Department of Professional and Financial 
Regulation. Bureau of Consumer Credit Protection regarding options for finding an 
advisor who can help the person work with the municipality to avoid tax lien foreclosure 
and provide information regarding ways to contact the bureau. 
The Department of 
Professional and Financial Regulation, Bureau of Consumer Credit Protection. by July 
15th annually. shall provide to a statewide organization representing municipalities 
information regarding assistance in avoiding tax lien foreclosure to assist municipalities 
in providing the information required in the notice. 
Sec. 2. 36 MRSA §943-C is enacted to read: 
§943-C. Sale of homesteads formerly owned by persons 65 years of age or older 
Notwithstanding any provision of law to the contrary. after the foreclosure process 
under sections 942 and 943 or sections 1281 and 1282 is completed and the right of 
COMMITTEE AMENDMENT 
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O"' __ , 
CO'MM.ITTEE AM.ENDMENT "A" to H.P. 1124, L.D. 1629 
redemption has expired, if a municipality chooses to sell property that immediately prior 
to foreclosure was eligible for a property tax exemption as a homestead under subchapter 
4-B, the municipality shall notify the former owner or owners of the right to require the 
municipality to use the sale process under subsection 3 if the former owner or owners 
demonstrate that the property meets the requirements of subsection 1. 
1. Subject property. Property is subject to the requirements of this section if: 
A. Immediately prior to foreclosure the property was owned by at least one person 
who, on the date the tax lien certificate was filed, was 65 years of age or older and 
occupied the property as a homestead as defined in section 681, subsection 2: and 
B. The former owner or owners of the property demonstrate to the municipality that: 
(1) The income. as defined in section 5219-KK. subsection 1, paragraph D, of 
residents of the property was less than $40,000 for the calendar year immediately 
preceding the calendar year in which the right of redemption expired: and 
(2) The value of liquid assets of the residents of the property is less than $50.000 
in the case of a single individual or $75,000 in the case of 2 or more individuals. 
For the purposes of this subparagraph, "liquid assets" means something of value 
available to an individual that can be converted to cash in 3 months or less and 
includes bank accounts. certificates of deposit, money market or mutual funds. 
life insurance policies. stocks and bonds. lump-sum payments and inheritances 
and funds from a home equity conversion mortgage that are in the individual's 
possession whether they are in cash or have been converted to another form. 
2. Notification; appeal. A municipality required to provide the notification required 
under this section shall notify the former owner or owners of the right to require the sale 
process described in subsection 3 at least 90 days prior to listing the property for sale and 
provide an application form with instructions for the former owner or owners to apply for 
the sale process described under subsection 3 and to provide the information necessary 
for the municipality to determine whether the former owner or owners meet the 
conditions required under subsection 1. The former owner or owners must be allowed at 
least 30 days to submit the required form and information. The municipality. within 30 
days after receiving the required form and information. shall notify the former owner or 
owners whether they have been determined to be eligible for the sale process described in 
subsection 3 and provide the former owner or owners the right to appeal a negative 
decision. The State Tax Assessor shall prepare forms and instructions that must be used 
by municipalities to inform former owners of their right to apply for the sale process 
provided under subsection 3. 
3. Sale process requirements. If a municipality determines that the former owner 
or owners meet the conditions specified under subsection 2, the municipality shall: 
A. List the property for sale with a real estate broker licensed under Title 32. chapter 
that is not employed by the municipality: 
B. 
Sell the property at fair market value or the price at which the property is 
anticipated by the real estate broker to sell within 6 months after listing; and 
C. Pay to the former owner or owners any proceeds from the sale in excess of: 
COMMITTEE AMENDMENT 
cs··; 
COMMITTEE AMENDMENT ·A" to H.P. 1124, L.D. 1629 
(1) The sum of tax owed: 
(2) Property taxes that would have been due on the property during the period 
following foreclosure when the property is owned by the municipality; 
(3) Interest: 
(4) Fees, including real estate broker's fees; and 
(5) Any other expenses incurred by the municipality in making the sale or 
maintaining the property. 
4. Effect of inability to contract or sell property. If a municipality is unable to 
contract with a real estate broker for the sale of the property as described in subsection 3 
or the broker cannot sell the property within 6 months after listing, the municipality may 
treat the property in the same manner as other property acquired through foreclosure. 
5. Property in the unorganized territory. With regard to the sale of property 
acquired by the State through tax lien foreclosure in the unorganized territory, the State 
Tax Assessor has the obligations of a municipality under this section. 
Sec. 3. 36 MR.SA §1281, as amended by PL 1991, c. 846, §12, is further amended 
by inserting at the end a new paragraph to read: 
Within 30 days after recording a tax lien certificate in the registry of deeds for 
property that constitutes a homestead for which a property tax exemption is claimed 
under chapter 105, subchapter 4-B, the State Tax Assessor shall provide written notice to 
the owner named on the tax lien mortgage that that owner may be eligible to file an 
application for tax abatement under section 841, subsection 2, indicating that the State 
Tax Assessor, upon request, will assist the owner in requesting an abatement and provide 
information regarding the procedures for making such a request. The notice must also 
indicate that the owner may seek assistance from the Department of Professional and 
Financial Regulation, Bureau of Consumer Credit Protection regarding options for 
finding an advisor who can help the owner work with the State Tax Assessor to avoid tax 
lien foreclosure and provide information regarding ways to contact the bureau. The 
Department of Professional and Financial Regulation, Bureau of Consumer Credit 
Protection, by July 15th annually, shall provide to a statewide organization representing 
municipalities and to the State Tax Assessor information regarding assistance in avoiding 
tax lien foreclosure to assist municipalities and the State Tax Assessor in providing the 
information required in the notice. 
Sec. 4. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides funding to reimburse municipalities for 90% of the cost of selling 
property that has been acquired through tax lien foreclosure. 
COMMITTEE AMENDMENT 
c;:;,.'~ 
COMMITTEE AMENDMENT "A" to H.P. 1124, L.D. 1629 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2017-18 
$0 
$0 
2018-19 
$825,255 
$825,255 
This amendment replaces the bill and requires a municipal treasurer or the State Tax 
Assessor, with regard to property in the unorganized territory, within 30 days after 
recording a tax lien certificate in the registry of deeds to notify the person named on a tax 
lien mortgage of the right to apply for an abatement and the availability of assistance in 
applying for an abatement from the municipal treasurer or the State Tax Assessor. The 
amendment also requires that the notification include information about the availability of 
assistance to avoid tax lien foreclosure from the Department of Professional and Financial 
Regulation, Bureau of Consumer Credit Protection. 
The amendment also provides a process that must be used by municipalities that 
choose to sell property that has been acquired through tax lien foreclosure if the property 
was formerly eligible for a homestead exemption and was owned by a person who was 65 
years of age or older and meets income and assets guidelines. Under this process the 
municipality must use an independent real estate broker, sell the property for fair market 
value or the price at which the independent broker thinks the property will sell within 6 
months and return the net proceeds of the sale to the former owner after deduction of the 
municipality's costs. 
The amendment also provides funding to municipalities to cover state-mandated 
costs. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/13/18 ;tr.,,ae"--
LD 1629 
LR2290(05) 
An Act To Protect the Elderly from Tax Lien Foreclosures 
Fiscal Note for Bill as Amended by Committee Amendment •{f 
Committee: Taxation 
CfJ-770 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
State Mandates 
Fiscal Note Required: Yes 
Fiscal Note 
State Mandate - Funded 
FY2017-18 
FY 2018-19 
$0 
$825,255 
$0 
$825,255 
Projections 
FY 2019-20 
$825,255 
$825,255 
Required Activity 
Unit Affected 
Provide written notice to homeowner receiving a tax lien that he or she can file an 
Municipality 
application for tax abatement. Engage a real estate broker, sell at fair market value 
or price anticipated by broker, remit excess proceeds to the homeowner when sold. 
Projections 
FY2020-21 
$825,255 
$825,255 
Local Cost 
Significant 
statewide 
The bill includes a General Fund appropriation to the Department of Administrative and Financial Services to 
reimburse municipalities for 90% of the costs of selling property that has been acquired through tax lien 
foreclosure. 
Fiscal Detail and Notes 
Additional costs to the Department of Professional and Financial Regulation associated with this legislation can be 
absorbed within existing budgeted resources. 
LR2290(05) - Fiscal Note - Page 1 of 1