An Act to Improve Affordability and Opportunity for Maine Renters and Landlords
Maine Legislature, Session 131, LD 1901
Committee: Taxation
Sponsors: SKOLD, DAUGHTRY, BLIER, HASENFUS, PERRY, RANA, THERIAULT, DUSON, PIERCE, POULIOT
Amends: 30-A MRSA §4852, 36 MRSA §4641-B, 36 MRSA §5219-K

Legislative Document
No. 1901
H.P. 1216
House of Representatives, May 9, 2023
An Act to Improve Affordability and Opportunity for Maine 
Renters and Landlords
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative SKOLD of Portland.
Cosponsored by Senator DAUGHTRY of Cumberland and
Representatives: BLIER of Buxton, HASENFUS of Readfield, PERRY of Calais, RANA of 
Bangor, THERIAULT of Fort Kent, Senators: DUSON of Cumberland, PIERCE of 
Cumberland, POULIOT of Kennebec.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §4852, sub-§2, ¶A-2 is enacted to read:
A-2.  In addition to the uses provided in paragraphs A and B, money in the fund may 
be used to provide no-interest loans in accordance with subsection 4.
Sec. 2.  30-A MRSA §4852, sub-§4 is enacted to read:
4.  No-interest loans for new affordable housing.  The Maine State Housing 
Authority shall develop and administer within the Housing Opportunities for Maine 
Program a plan to provide no-interest loans to property owners to support the development 
of affordable housing.  The plan must include at least the following elements.
A. The plan must provide a loan of up to $50,000 to each eligible property owner to 
develop and offer for rent an affordable housing unit.  An eligible property owner may 
receive up to 4 loans for 4 such housing units.  A development may involve conversion 
of an existing unit or new construction, in accordance with standards established by the 
authority by rule. 
B.  Under the plan, in order to be eligible for a loan, a property owner shall sign an 
agreement acceptable to the authority that commits the property owner and any 
successor in interest to:
(1) Ensuring the development and its operation complies with all applicable local 
and state requirements and codes; 
(2) Offering the affordable housing units for a period of 25 years at rent that is 
equivalent to no more than 30% of the income of a household whose income is at 
or below 80% of area median income, as determined by the authority by rule; and
(3) Renting the affordable housing units in accordance with the fair housing 
requirements of the Maine Human Rights Act and on a renewable term basis.  In 
no case may a rental be for any renewable term that is less than 28 days.
Sec. 3.  36 MRSA §4641-B, sub-§4-B, ¶E, as amended by PL 2021, c. 753, §1, is 
further amended to read:
E.  In From fiscal year 2015-16 and each fiscal year thereafter to fiscal year 2023-24, 
the Treasurer of State shall credit the revenues derived from the tax imposed pursuant 
to section 4641‑A, subsection 1 in accordance with this paragraph.
(1)  At the beginning of the fiscal year, the Maine State Housing Authority shall 
certify to the Treasurer of State the amount that is necessary and sufficient to meet 
the authority's obligations relating to bonds issued or planned to be issued by the 
authority under Title 30‑A, section 4864.
(2)  On a monthly basis the Treasurer of State shall apply 50% of the revenues in 
accordance with this subparagraph.  The Treasurer of State shall first pay revenues 
available under this subparagraph 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 amount paid equals the 
amount certified by the Maine State Housing Authority under subparagraph (1), 
after which the Treasurer of State shall credit any remaining revenues available 
under this subparagraph to the General Fund.
(3)  On a monthly basis, the Treasurer of State shall credit 50% of the revenues to 
the Maine State Housing Authority, except that, notwithstanding paragraph F, in 
fiscal year 2015-16, the Treasurer of State shall first credit $6,291,740 of the 
revenues available under this subparagraph to the General Fund and except that, 
notwithstanding paragraph F, in fiscal year 2016-17, the Treasurer of State shall 
first credit $6,090,367 of the revenues available under this subparagraph to the 
General Fund and except that, notwithstanding paragraph F, in fiscal years 2017-
and 2018-19, the Treasurer of State shall first credit $2,500,000 of the revenues 
available under this subparagraph to the General Fund.  The Maine State Housing 
Authority shall deposit the funds received pursuant to this subparagraph in the 
Housing Opportunities for Maine Fund created in Title 30‑A, section 4853.  
Beginning July 1, 2023, the Maine State Housing Authority shall use 25% of funds 
transferred to the Housing Opportunities for Maine Fund under this subparagraph 
to support the creation of new housing units, through new construction or adaptive 
reuse, that are affordable to low-income households.
Sec. 4.  36 MRSA §4641-B, sub-§4-B, ¶E-1 is enacted to read:
E-1.  In fiscal year 2024-25 and each fiscal year thereafter, the Treasurer of State shall 
credit the state share of the revenues derived from the tax imposed pursuant to section 
4641‑A, subsection 1 as follows:
(1)  At the beginning of the fiscal year, the Maine State Housing Authority shall 
certify to the Treasurer of State the amount that is necessary and sufficient to meet 
the authority's obligations relating to bonds issued or planned to be issued by the 
authority under Title 30‑A, section 4864. On a monthly basis, the Treasurer of State 
shall credit the revenues to the Maine State Housing Authority, and the authority 
shall deposit the funds in the Maine Energy, Housing and Economic Recovery 
Fund established in Title 30‑A, section 4863, until the amount paid equals the 
amount certified by the authority.
(2)  At the close of each fiscal year, the Treasurer of State shall credit amounts to 
the General Fund and to the Maine State Housing Authority so that the General 
Fund receives 10% of the total revenue derived from the tax imposed pursuant to 
section 4641-A, subsection 1 and the Maine State Housing Authority receives 80%, 
including all amounts applied pursuant to subparagraph (1). The Maine State 
Housing Authority shall deposit the funds received pursuant to this subparagraph 
in the Housing Opportunities for Maine Fund created in Title 30‑A, section 4853.  
The Maine State Housing Authority shall use 25% of funds transferred to the 
Housing Opportunities for Maine Fund under this subparagraph to support the 
creation of new housing units, through new construction or conversion of existing 
units, that are affordable to low-income households.
Sec. 5.  36 MRSA §5219-KK, sub-§1, ¶A-1, as amended by PL 2021, c. 483, Pt. 
AA, §1, is further amended to read:
A-1.  For tax years beginning on or after January 1, 2018 and before January 1, 2024, 
"benefit base" means property taxes paid by a resident individual during the tax year 
on the resident individual's homestead in this State or rent constituting property taxes 
paid by the resident individual or the bureau pursuant to chapter 908 on behalf of a 
resident individual during the tax year on a homestead in the State not exceeding the 
following amounts:
(1)  For persons filing as single individuals, $2,050;
(2)  For persons filing as heads of households that who can claim the federal child 
tax credit pursuant to the Code, Section 24 for no more than one qualifying child 
or dependent or for persons filing joint returns, $2,650; and
(3)  For persons filing as heads of households that who can claim the federal child 
tax credit pursuant to the Code, Section 24 for more than one qualifying child or 
dependent or for persons filing joint returns that who can claim the federal child 
tax credit pursuant to the Code, Section 24 for at least one qualifying child or 
dependent, $3,250.
Sec. 6.  36 MRSA §5219-KK, sub-§1, ¶A-2 is enacted to read:
A-2.  For tax years beginning on or after January 1, 2024, "benefit base" means property 
taxes paid by a resident individual during the tax year on the resident individual's 
homestead in this State or rent constituting property taxes paid by the resident 
individual or the bureau pursuant to chapter 908 on behalf of a resident individual 
during the tax year on a homestead in the State, not exceeding the following amounts:
(1)  For persons filing as single individuals, $3,075;
(2)  For persons filing as heads of households who can claim the federal child tax 
credit pursuant to the Code, Section 24 for no more than one qualifying child or 
dependent or for persons filing joint returns, $3,975; and
(3)  For persons filing as heads of households who can claim the federal child tax 
credit pursuant to the Code, Section 24 for more than one qualifying child or 
dependent or for persons filing joint returns who can claim the federal child tax 
credit pursuant to the Code, Section 24 for at least one qualifying child or 
dependent, $4,875.
Sec. 7.  36 MRSA §5219-KK, sub-§2-D, as amended by PL 2021, c. 635, Pt. F, 
§1, is further amended to read:
2-D.  Credit in 2022 and after 2023.  For tax years beginning on or after January 1, 
2022 and before January 1, 2024, a resident individual is allowed a credit against the taxes 
imposed under this Part equal to the amount by which the benefit base for the resident 
individual exceeds 4% of the resident individual's income.  The credit may not exceed 
$1,000 for resident individuals under 65 years of age as of the last day of the taxable year 
or $1,500 for resident individuals 65 years of age and older as of the last day of the taxable 
year.  In the case of married individuals filing a joint return, only one spouse is required to 
be 65 years of age or older to qualify for the $1,500 credit limitation.  Married taxpayers 
filing separate returns do not qualify for the credit under this section.
Sec. 8.  36 MRSA §5219-KK, sub-§2-D-1 is enacted to read:
2-D-1.  Credit in 2024 and after.  For tax years beginning on or after January 1, 2024, 
a resident individual is allowed a credit against the taxes imposed under this Part equal to 
the amount by which the benefit base for the resident individual exceeds 4% of the resident 
individual's income.  The credit may not exceed $1,500 for resident individuals under 65 
years of age as of the last day of the taxable year or $2,250 for resident individuals 65 years 
of age and older as of the last day of the taxable year.  In the case of married individuals 
filing a joint return, only one spouse is required to be 65 years of age or older to qualify for 
the $2,250 credit limitation.  Married taxpayers filing separate returns do not qualify for 
the credit under this section.
SUMMARY
This bill does the following:
1. It modifies the Maine State Housing Authority's Housing Opportunities for Maine 
Program to provide no-interest loans to property owners to support the development of 
affordable housing.  Loans of up to $50,000 are available to an eligible property owner to 
develop and offer for rent an affordable housing unit.  An eligible property owner may 
receive up to 4 loans for 4 such housing units.  A development may involve conversion of 
an existing unit or new construction, in accordance with standards established by the 
authority by rule. In order to receive a loan, a property owner must sign an agreement 
acceptable to the authority that commits the property owner and any successor in interest 
to: ensuring the development and its operation complies with all applicable local and state 
requirements and codes; offering the housing units for a period of 25 years at rent that is 
equivalent to no more than 30% of the income of a household whose income is at or below 
80% of area median income, as determined by the authority by rule; and renting the housing 
units in accordance with the fair housing requirements of the Maine Human Rights Act and 
on a renewable basis;
2. It modifies the distribution of the real estate transfer tax beginning in fiscal year 
2024-25.  It provides that 80% of the real estate transfer tax goes to the Maine State Housing 
Authority first to continue to meet the authority's obligations relating to bonds issued or 
planned to be issued by the authority under the Maine Revised Statutes, Title 30‑A, section 
4864 and 2nd for deposit in the Housing Opportunities for Maine Fund.  Ten percent goes 
to the General Fund and 10% remains with the registry of deeds; and
3. It modifies the property tax fairness income tax credit to increase the benefit amounts 
by 50% and to increase the income-related eligibly thresholds by 50%.