An Act to Provide Financing Assistance for Down Payments for
Maine Legislature, Session 132, LD 1486
Committee: Housing and Economic Development
Sponsors: YUSUF, CURRY

Legislative Document
No. 1486
H.P. 977
House of Representatives, April 3, 2025
An Act to Provide Financing Assistance for Down Payments for 
First-generation Homeowners
Reference to the Committee on Housing and Economic Development suggested and 
ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative YUSUF of Portland.
Cosponsored by Senator CURRY of Waldo and
Representatives: DHALAC of South Portland, GERE of Kennebunkport, GOLEK of 
Harpswell, LOOKNER of Portland, RANA of Bangor, Senator: BENNETT of Oxford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA c. 201, sub-c. 10-B is enacted to read:
SUBCHAPTER 10-B
FIRST-GENERATION HOMEOWNER DOWN PAYMENT ASSISTANCE 
PROGRAM
§4947.  First-generation Homeowner Down Payment Assistance Program
1.  Program established.  The First-generation Homeowner Down Payment 
Assistance Program, referred to in this subchapter as "the program," is established within 
the Maine State Housing Authority. 
2.  Purpose.  The purpose of the program is to provide down payment assistance in the 
form of a loan to first-generation homeowners. 
3.  Program requirements.  The program must be administered subject to the 
provisions of this section.  Priority must be given to applicants who demonstrate a need for 
assistance and an ability to repay a loan for down payment assistance issued under the 
program. 
A. A loan issued under the program may not exceed 10% of the purchase price of the 
home that will serve as a borrower's primary residence and is limited to a borrower 
who: 
(1) Has a household income at or below 100% of the area median income where 
the property intended for purchase is located; 
(2) Has never owned a home or who owned a home but lost it due to foreclosure; 
(3) Is preapproved for a first mortgage loan to purchase the property; and 
(4) Has or had a parent or legal guardian who never owned a home or who owned 
a home but lost it due to foreclosure. 
B. A loan issued under this program is forgivable at a rate of 20% per year. 
C. Administrative costs may not exceed $3,200 per loan. 
4.  Rules.  The Maine State Housing Authority shall adopt rules to carry out the 
purposes of this subchapter.  Rules adopted pursuant to this subsection are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
§4948.  First-generation Homeowner Down Payment Assistance Fund
1.  Fund established.  The First-generation Homeowner Down Payment Assistance 
Fund, referred to in this subchapter as "the fund," is established under the jurisdiction of 
the Maine State Housing Authority. 
2.  Sources of fund.  The following must be paid into the fund: 
A. All funds appropriated to the fund; 
B. Subject to any pledge, contract or other obligation, any funds that the Maine State 
Housing Authority receives in repayment of loans or advances from the fund; 
C. Subject to any pledge, contract or other obligation, all interest, dividends or other 
income from investment of the fund; and
D. Any other funds, including federal funds, deposited in the fund to implement the 
provisions of this subchapter. 
3.  Revolving fund.  The fund is a nonlapsing, revolving fund.  All funds in the fund 
must be continuously applied by the Maine State Housing Authority to carry out this 
subchapter. 
Sec. 2.  Appropriations and allocations.  The following appropriations and 
allocations are made.
HOUSING AUTHORITY, MAINE STATE
First-generation Homeowner Down Payment Assistance Fund N519
Initiative: Provides ongoing funds to provide down payment assistance in the form of loans 
to eligible first-generation homeowners.
GENERAL FUND
2025-26
2026-27
All Other
$10,000,000
$10,000,000
__________
__________
GENERAL FUND TOTAL
$10,000,000
$10,000,000
SUMMARY
This bill establishes a program to be administered by the Maine State Housing 
Authority that provides down payment assistance in the form of loans to prospective first-
generation homeowners with household incomes at or below 100% of the area median 
income where the property to be purchased is located.  Loans issued under the program 
may not exceed 10% of the purchase price of the property and administrative costs may not 
exceed $3,200 per loan.  The bill provides ongoing funding of $10,000,000 per year to 
administer the program.