An Act To Improve Affordable Housing Options and Services To Address Homelessness
Maine Legislature, Session 130, LD 0953
Committee: Taxation
Sponsors: DESCHAMBAULT, FECTEAU, ARFORD, GERE, RIELLY, SALISBURY, SHEEHAN
Amends: 30-A MRSA §5225

Legislative Document
No. 953
S.P. 305
In Senate, March 9, 2021
An Act To Improve Affordable Housing Options and Services To 
Address Homelessness
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator DESCHAMBAULT of York.
Cosponsored by Speaker FECTEAU of Biddeford and
Representatives: ARFORD of Brunswick, GERE of Kennebunkport, RIELLY of Westbrook, 
SALISBURY of Westbrook, SHEEHAN of Biddeford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §5225, sub-§1, ¶A, as amended by PL 2011, c. 101, §12, is 
further amended to read:
A.  Costs of improvements made within the tax increment financing district, including, 
but not limited to:
(1)  Capital costs, including, but not limited to:
(a)  The acquisition or construction of land, improvements, public ways, 
buildings, structures, fixtures and equipment for public, arts district, new or 
existing recreational trail, commercial, affordable housing or transit-oriented 
development district use.
(i)  Eligible transit-oriented development district capital costs include but 
are not limited to:  transit vehicles such as buses, ferries, vans, rail 
conveyances and related equipment; bus shelters and other transit-related 
structures; benches, signs and other transit-related infrastructure; bicycle 
lane construction and other bicycle-related improvements; pedestrian 
improvements such as crosswalks, crosswalk signals and warning systems 
and crosswalk curb treatments; and the nonresidential commercial portions 
of transit-oriented development projects.
(ii)  Eligible recreational trail-related development district capital costs 
include but are not limited to new or existing trails, including bridges that 
are part of the trail corridor, used all or in part for all-terrain vehicles, 
snowmobiles, hiking, bicycling, cross-country skiing or other related 
multiple uses, signs, crosswalks, signals and warning systems and other 
related improvements.
(iii)  Eligible development district capital costs for public ways include but 
are not limited to scenic turnouts, signs, railing and other related 
improvements;.
(iv)  Costs for the development for affordable housing allowed under 
subchapter 3;
(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 or plantation employees in connection with the 
implementation of a development program;
(6)  Relocation costs, including, but not limited to, relocation payments made 
following condemnation;
(7)  Organizational costs relating to the establishment of the 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 development districts and 
the implementation of project plans; and
(8)  In the case of transit-oriented development districts, ongoing costs of adding 
to an existing transit system or creating a new transit service and limited strictly to 
transit operator salaries, transit vehicle fuel and transit vehicle parts replacements;
Sec. 2.  30-A MRSA §5225, sub-§1, ¶B, as amended by PL 2019, c. 148, §2, is 
further amended to read:
B.  Costs of improvements that are made outside the tax increment financing district 
but are directly related to or are made necessary by the establishment or operation of 
the district, including, but not limited to:
(1)  Costs related to the construction, alteration or expansion of any facilities not 
located within the district that are required due to improvements or activities within 
the district, including, but not limited to, sewage treatment plants, water treatment 
plants or other environmental protection devices; storm or sanitary sewer lines; 
water lines; electrical lines; improvements to public safety facilities; and amenities 
on streets;
(2)  Costs of public safety improvements related to the establishment of the district; 
and
(3)  Costs of funding to mitigate any adverse impact of the district upon the 
municipality or plantation and its constituents.  This funding may be used for public 
facilities and improvements if:
(a)  The public facilities or improvements are located in a downtown tax 
increment financing district; and
(b)  The entire tax increment from the downtown tax increment financing 
district is committed to the development program of the tax increment 
financing district; and
(4)  Costs related to the construction or development of affordable housing in 
support of municipal economic development activities;
Sec. 3.  30-A MRSA §5225, sub-§1, ¶C, as amended by PL 2019, c. 604, §3 and 
c. 625, §3, is repealed and the following enacted in its place:
C.  Costs related to economic development, environmental improvements, fisheries and 
wildlife or marine resources projects, recreational trails, broadband service 
development, expansion or improvement, including connecting to broadband service 
outside the tax increment financing district, employment training or the promotion of 
workforce development and retention within the municipality or plantation, including, 
but not limited to:
(1)  Costs of funding economic development programs or events developed by the 
municipality or plantation or funding the marketing of the municipality or 
plantation as a business or arts location;
(2)  Costs of funding environmental improvement projects developed by the 
municipality or plantation for commercial or arts district use or related to such 
activities;
(3)  Funding to establish permanent economic development revolving loan funds, 
investment funds and grants;
(4)  Costs of services and equipment to provide skills development and training, 
including scholarships to in-state educational institutions or to online learning 
entities when in-state options are not available, for jobs created or retained in the 
municipality or plantation.  These costs must be designated as training funds in the 
development program;
(5)  Costs associated with quality child care facilities and adult care facilities, 
including finance costs and construction, staffing, training, certification and 
accreditation costs related to child care and adult care;
(6)  Costs associated with new or existing recreational trails determined by the 
department to have significant potential to promote economic development, 
including, but not limited to, costs for multiple projects and project phases that may 
include planning, design, construction, maintenance, grooming and improvements 
with respect to new or existing recreational trails, which may include bridges that 
are part of the trail corridor, used all or in part for all-terrain vehicles, snowmobiles, 
hiking, bicycling, cross-country skiing or other related multiple uses;
(7)  Costs associated with a new or expanded transit service, limited to:
(a)  Transit service capital costs, including but not limited to:  transit vehicles 
such as buses, ferries, vans, rail conveyances and related equipment; bus 
shelters and other transit-related structures; and benches, signs and other 
transit-related infrastructure; and
(b)  In the case of transit-oriented development districts, ongoing costs of 
adding to an existing transit system or creating a new transit service and limited 
strictly to transit operator salaries, transit vehicle fuel and transit vehicle parts 
replacements;
(8)  Costs associated with the development of fisheries and wildlife or marine 
resources projects;
(9)  Costs related to the construction or operation of municipal or plantation public 
safety facilities, the need for which is related to general economic development 
within the municipality or plantation, not to exceed 15% of the captured assessed 
value of the development district;
(10)  Costs associated with broadband and fiber optics expansion projects, 
including preparation, planning, engineering and other related costs in addition to 
the construction costs of those projects.  If an area within a municipality or 
plantation is unserved with respect to broadband service, as defined by the 
ConnectMaine Authority as provided in Title 35‑A, section 9204‑A, subsection 1, 
broadband and fiber optics expansion projects may serve residential or other 
nonbusiness or noncommercial areas in addition to business or commercial areas 
within the municipality or plantation; and
(11)  Costs associated with the development and support of:
(a)  Affordable housing in the municipality to serve ongoing economic 
development efforts, including the further development of downtown districts; 
and
(b)  Housing programs and services to assist those who are homeless in the 
municipality;
Sec. 4.  30-A MRSA §5225, sub-§1, ¶D, as amended by PL 2011, c. 101, §15, is 
further amended to read:
D.  Costs of constructing or improving facilities or buildings leased by State 
Government or a municipal or plantation government that are located in approved 
downtown tax increment financing districts.; and
Sec. 5.  30-A MRSA §5225, sub-§1, ¶E is enacted to read:
E.  Costs associated with the development of affordable housing or housing services 
for persons who are homeless for the purposes of providing an incentive for 
development within the municipality.
SUMMARY
This bill permits tax increment financing to be used by a municipality to cover costs 
associated with the development of affordable housing in and outside development 
districts, for the use in supporting housing services for persons who are homeless, for the 
purpose of providing an incentive for development within the municipality.  The bill also 
corrects a conflict in the Maine Revised Statutes, Title 30-A, section 5225, subsection 1, 
paragraph C, which was amended by Public Law 2019, chapter 604 and chapter 625, by 
incorporating the changes made by both laws.