An Act to Establish the Community Housing and Rural Development Authority
Maine Legislature, Session 131, LD 1867
Committee: Innovation, Development, Economic Advancement and Business
Sponsors: LOOKNER, VITELLI, BELL, GATTINE, GOLEK, JAUCH, KESSLER, MILLETT, RANA, SACHS
Amends: 1 MRSA §1008, 5 MRSA §1524, 5 MRSA §12004-G, 30-A MRSA §5180

Legislative Document
No. 1867
H.P. 1197
House of Representatives, May 2, 2023
An Act to Establish the Community Housing and Rural 
Development Authority
Reference to the Committee on Innovation, Development, Economic Advancement and 
Business suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative LOOKNER of Portland.
Cosponsored by Senator VITELLI of Sagadahoc and
Representatives: BELL of Yarmouth, GATTINE of Westbrook, GOLEK of Harpswell, 
JAUCH of Topsham, KESSLER of South Portland, MILLETT of Cape Elizabeth, RANA of 
Bangor, SACHS of Freeport.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  1 MRSA §1008, sub-§5, as enacted by IB 1995, c. 1, §6, is amended to 
read:
5.  Maine Clean Election Act and Maine Clean Election Fund.  To administer and 
ensure the effective implementation of the Maine Clean Election Act and the Maine Clean 
Election Fund according to Title 21‑A, chapter 14; and
Sec. 2.  1 MRSA §1008, sub-§6, as amended by PL 2005, c. 301, §1, is further 
amended to read:
6.  Enhanced monitoring.  To provide for enhanced monitoring and enforcement of 
election practices and the electronic submission of reports and computerized tracking of 
campaign, election and lobbying information under the commission's jurisdiction.; and
Sec. 3.  1 MRSA §1008, sub-§7 is enacted to read:
7.  Community Housing and Rural Development Authority.  To review any 
economic interest statements provided by board members or employees of the Community 
Housing and Rural Development Authority established under Title 30-A, chapter 204-A 
and to submit comments on the economic interest statements to the board.  The commission 
shall adopt rules to implement this subsection.  Rules adopted pursuant to this subsection 
are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. 4.  5 MRSA §1524 is enacted to read:
§1524.  Private use of state-owned real property; community housing development; 
legislative approval required
The sale or transfer of state-owned real property for private use requires the approval 
of the Legislature.  When the State considers selling or transferring state-owned real 
property for private use, it shall conduct a feasibility study, including studying the housing 
needs in the State, to consider whether the property should be sold or transferred to the 
Community Housing and Rural Development Authority established under Title 30-A, 
chapter 204-A.  The State shall submit the feasibility study to the joint standing committee 
of the Legislature having jurisdiction over housing matters.
Sec. 5.  5 MRSA §12004-G, sub-§14-K is enacted to read:
14-K.   
Housing 
Community Housing and Rural 
Development Authority board 
Compensation 
determined under 
30-A MRSA 
§5180 and 
Expenses
30-A MRSA 
c. 204-A 
Sec. 6.  30-A MRSA c. 204-A is enacted to read:
CHAPTER 204-A
COMMUNITY HOUSING AND RURAL DEVELOPMENT AUTHORITY
SUBCHAPTER 1
AUTHORITY ESTABLISHED
§5171.  Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1. Area median income.  "Area median income" means income adjusted for family 
size that is determined using the federal standards generally accepted on October 15, 2023 
and comparable to standards of the United States Department of Housing and Urban 
Development in existence on October 15, 2023.
2.  Authority.  "Authority" means the Community Housing and Rural Development 
Authority established in section 5172.
3.  Board.  "Board" means the board that governs the authority pursuant to section 
5173.
4.  Community housing development.  "Community housing development" means a 
building that is used by the authority for mixed-income, permanently affordable public 
residential housing.
5.  Constituency.  "Constituency" means the Constituency of the Community Housing 
and Rural Development Authority established in section 5191.
6.  Extremely low income.  "Extremely low income" means income that is less than 
30% of the area median income.
7.  Fund.  "Fund" means the Revolving Community Housing Fund established in 
section 5195.
8.  Low income.  "Low income" means income that is between 50% and 80% of the 
area median income.
9.  Moderate income.  "Moderate income" means income that is between 80% and 
120% of the area median income.
10.  Very low income.  "Very low income" means income that is between 30% and 
50% of the area median income.
§5172.  Establishment; purposes
The Community Housing and Rural Development Authority is established within the 
Maine Redevelopment Land Bank Authority, as established in Title 5, section 12004-G, 
subsection 7-G, for the purposes of developing, owning, leasing and maintaining 
community housing developments in this State.
§5173.  Governance; board
The authority is created as a body corporate and politic and a public instrumentality of 
the State and is governed by the board in accordance with this subchapter.
§5174.  Board members; appointment
1. Appointments.  The board consists of members appointed in accordance with this 
subsection.
A. The Governor shall appoint 3 members with expertise in public housing finance, 
urban planning and nonprofit housing development.
B. The Maine State Housing Authority shall appoint:
(1) One member who has experienced housing insecurity;
(2) One member who has experienced forcible entry and detainer on financial 
grounds;
(3) One member who is a member of a tenant's union;
(4) One member with extremely low income;
(5) Two members with very low income;
(6) Two members with low income;
(7) Two members with moderate income; and
(8) One member who is a leader from a community organization that provides 
housing to marginalized communities.
This paragraph is repealed July 1, 2027.
C. The constituency shall appoint 7 members who are tenants of a community housing 
development.
This paragraph takes effect July 2, 2027.
D. The board shall appoint one member following a public call for self-nominations.
This paragraph takes effect July 2, 2027.
E. The Maine Labor Relations Board, as established in Title 5, section 12004-B, 
subsection 2, shall appoint one member of a labor union.
F. The Efficiency Maine Trust Board, as established in Title 5, section 12004-G, 
subsection 10-C, shall appoint one member with expertise in energy-efficient housing 
development.
§5175.  Terms; vacancies; removal
Board members serve 4-year terms.  Board members serve until their successors are 
appointed and take office.  Vacancies must be filled in the same manner as the original 
appointments, except that any person appointed to fill a vacancy serves for the remainder 
of the unexpired term of the vacancy.  Board members may not serve for more than 8 
consecutive years on the board.  The Governor may remove a board member upon a 
showing that the board member had unexcused absences from 3 or more consecutive 
meetings or 2/3 of the scheduled meetings in a 6-month period.
§5176.  Chairs; officers
The board shall elect a chair, a vice-chair, a secretary and a treasurer from among the 
board members.  Each officer serves a one-year term in that office and is eligible for 
reelection.
§5177.  Meetings; quorum
The board shall meet at least once per month and at other times at the call of the chair.  
The board shall review balance sheets and monthly statements of income and expenses that 
compare budgeted expenditures to actual expenditures.  A majority of the board constitutes 
a quorum.  Meetings of the board are public proceedings as provided by Title 1, chapter 
13, subchapter 1.
§5178.  Election of subcommittees
The board may elect subcommittees of no fewer than 3 members and no more than 6 
members, which, between meetings of the board, may transact business of the board as the 
board authorizes.
§5179.  Bylaws
The board shall adopt bylaws for the governance of its affairs consistent with this 
chapter.
§5180.  Compensation
The authority shall pay board members representing tenants, community organizations 
and union interests for the members' time conducting board business.  The board may 
decide to pay other board members for their time.
§5181.  Powers and duties; restrictions
1. Powers and duties.  The authority shall:
A. Except as provided in subsection 2, possess all of the powers a corporation has under 
Title 13;
B. Develop, own, lease and maintain community housing developments, in accordance 
with the requirements of section 5182, that serve a mix of household income ranges, 
including households with extremely low income, very low income, low income and 
moderate income, and a mix of household sizes;
C. Manage any source of funds, including local, state, federal or private funds, or real 
property;
D. Request of the State that any real property that is unused, underused or surplus be 
made available to the authority for a community housing development;
E. Propose amendments to the laws governing the authority to the Legislature;
F. Report no later than January 1st annually to the joint standing committee of the 
Legislature having jurisdiction over housing matters on the activities of the authority;
G. Explore unit ownership options for tenants;
H. Hire employees;
I. Issue bonds and capitalize the fund; and
J. Perform other functions necessary or useful for carrying out any of its powers or 
duties.
2. Restrictions.  Notwithstanding any provision of this chapter to the contrary, the 
authority may not:
A. Issue shares of stock or pay dividends;
B. Make loans;
C. Merge with another entity; or
D. Transfer a community housing development to another entity unless the 
development continues to be subject to the requirements in section 5182.
§5182. Requirements for community housing developments
This section governs the requirements for a community housing development.
1. Ownership requirements.  A community housing development:
A. Must be owned by a majority ownership interest by the authority;
B. Must be protected from being sold or transferred to a private entity or a public-
private partnership; and
C.  May be purchased by the tenants of the community housing development on a 
cooperative basis when the community housing development is paid off and there is 
unanimous agreement between the authority and the governance council of the 
development formed pursuant to section 5192.  For purposes of this paragraph, 
"cooperative basis" has the same meaning as in Title 13, section 1501, subsection 2.
2. Community housing development requirements.  The authority shall require that 
a community housing development meet the energy efficiency and labor standards for 
projects funded by the Maine State Housing Authority.
§5183. Audit
The authority shall submit to an audit by the State Auditor at any time the State Auditor 
determines is necessary to ensure that the purposes of the authority are reasonably 
accomplished and to correct a deficiency.  The authority shall make available for 
examination by the State Auditor all of its financial records.  The State Auditor may not 
supervise the daily operations of the authority.  The board may engage an independent 
auditor as it determines necessary.
§5184.  Dissolution
The authority shall adopt rules regarding its dissolution.
§5185.  Liability
1. Insurance.  The authority shall maintain liability insurance in an amount sufficient 
to cover potential claims for bodily injuries, death, disabilities or property damage related 
to its projects and activities.  The authority shall maintain liability insurance in an amount 
determined by the board to be adequate to protect board members and employees of the 
authority.
2. Bond.  All members of the board and any employees of the authority with the 
responsibility of handling finances of the authority must be bonded in an amount 
determined by the board to be adequate.  The authority shall pay for the premiums for the 
bond.  The authority shall identify these members or employees and the amounts of their 
bonds in its annual report required pursuant to section 5181, subsection 1, paragraph F.
3. Limitation. A person does not have any right of action against the State relating to 
the activities of the authority.  All liabilities must be satisfied from the assets and properties 
of the authority.
4. Notice required.  The authority shall post the following notice in a prominent place 
where the public may see it in the authority's offices and include in contracts, bonds and 
other documents regarding debt or liability by the authority:
"All liabilities incurred by the Community Housing and Rural Development 
Authority must be satisfied exclusively from the assets and properties of the 
Community Housing and Rural Development Authority, and a person does not 
have a right of action against the State relating to the activities of the 
Community Housing and Rural Development Authority."
§5186.  Conflict of interest
A board member is deemed to be an executive employee for the purposes of Title 5, 
sections 18, 18-A and 19.  A board member or employee of the authority or a spouse or 
dependent child of any of those individuals may not receive any direct personal benefit 
from the activities of the authority.  Annually by April 15th, a board member or employee 
shall file statements of economic interest with the Commission on Governmental Ethics 
and Election Practices in accordance with Title 1, section 1008, subsection 7.
§5187.  Freedom of access
The records of the authority are subject to the freedom of access laws under Title 1, 
chapter 13, subchapter 1.
§5188.  Rulemaking
The authority shall adopt rules to implement this chapter.  The rules must establish an 
equitable, minimal-barrier application process, state residency requirements for tenants of 
a community housing development, means of maintaining existing tenants if the authority 
takes ownership of an occupied building and meaningful tenant input and representation 
requirements for authority decision making and conflict resolution.  Rules adopted pursuant 
to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
SUBCHAPTER 2
TENANTS OF COMMUNITY HOUSING DEVELOPMENTS
§5191. Constituency established
1. Establishment.  The Constituency of the Community Housing and Rural 
Development Authority is established and must consist of tenants of community housing 
developments.
2. Majority required.  A majority of the constituency is required for the authority to:
A. Propose amendments to the laws governing the authority in accordance with section 
5181, subsection 1, paragraph E;
B. Adopt rules in accordance with section 5188;
C. Set compensation of board members in accordance with section 5180; and
D. Select an independent auditor in accordance with section 5183.
3. Governance structure. The authority shall adopt rules regarding the constituency, 
including, but not limited to, membership, notice, quorum and meeting frequency.
4. Board appointments. The constituency shall appoint 7 members to the board in 
accordance with section 5174, subsection 1, paragraph C. If a candidate for a member does 
not receive a majority affirmative vote, a run-off election between the top 2 candidates 
must be held no later than one month following the first election.
This subsection takes effect July 2, 2027.
§5192. Governance councils
Each community housing development shall form a governance council consisting of 
members.
1. Duties.  A governance council shall:
A. Host regular meetings to gather feedback from tenants;
B. Provide feedback from tenants to property management;
C. Represent the interests of the tenants in meetings with the board;
D. Provide input on the use of any budget disbursed for common room amenities or 
social events;
E. Participate in discussions about renovation projects; and
F. Fulfill other responsibilities as determined by the authority by rule.
2. Structure.  The authority shall adopt rules regarding governance councils, 
including, but not limited to, the size of a governance council based on the size of the 
community housing developments it represents.
3. Consultation.  A governance council may consult with a nonprofit corporation with 
experience establishing managerial policies and practices that align with the requirements 
for a community housing development and providing suitable tenant protections.
SUBCHAPTER 3
REVOLVING COMMUNITY HOUSING FUND
§5195.  Revolving Community Housing Fund established
The Revolving Community Housing Fund is established within the authority in order 
to provide gap financing to acquire or develop a community housing development using 
the proceeds of bond issuances.
Sec. 7.  Initial appointments; staggered terms. Appointments must be made to 
the board of the Community Housing and Rural Development Authority under the Maine 
Revised Statutes, Title 30-A, chapter 204-A within 60 days of the effective date of this Act.  
Notwithstanding Title 30-A, section 5175, members appointed pursuant to section 5174, 
subsection 1, paragraph B serve an initial term of 4 years, and at the initial meeting of the 
board of the Community Housing and Rural Development Authority the remaining 
members shall draw lots to determine members' initial term lengths so that the initial terms 
of 3 members expire after 2 years and the initial terms of 2 members expire after 3 years.
Sec. 8.  Initial meeting; bylaws.  No later than 90 days following the effective date 
of this Act, the Governor or the Governor's designee shall call the first meeting of the board 
of the Community Housing and Rural Development Authority under the Maine Revised 
Statutes, Title 30-A, chapter 204-A and preside over the selection of a chair.  The Governor 
or the Governor's designee shall provide board members with at least 7 days' notice of the 
meeting.  In accordance with Title 30-A, section 5179, the board shall adopt bylaws.  The 
board shall adopt bylaws within 90 days of the initial meeting of the board.
Sec. 9.  Startup support.  The State shall provide the Community Housing and 
Rural Development Authority under the Maine Revised Statutes, Title 30-A, section 5172 
with assistance as necessary during the first 18 months following the effective date of this 
Act.  For purposes of this section, "assistance" includes office space, staff, supplies, 
insurance and bonding, legal services and the hiring of the authority's chief executive 
officer and chief financial officer.  Assistance provided pursuant to this section may not 
derive from funding appropriated or allocated for housing and may not reduce any state 
funding for housing projects.
SUMMARY
This bill establishes the Community Housing and Rural Development Authority within 
the Maine Redevelopment Land Bank Authority to develop, own, lease and maintain 
mixed-income, permanently affordable public residential housing in this State.