An Act to Reduce the Cost of Purchasing a Home by Providing
Maine Legislature, Session 132, LD 2077
Committee: Housing and Economic Development
Sponsors: FARRIN, FECTEAU
Amends: 30-A MRSA §4722, 36 MRSA §5122

Legislative Document
No. 2077
H.P. 1392
House of Representatives, January 7, 2026
An Act to Reduce the Cost of Purchasing a Home by Providing 
Grants to Reduce Mortgage Rates
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Housing and Economic Development suggested and 
ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative FARRIN of Jefferson.
Cosponsored by Representatives: EATON of Deer Isle, Speaker FECTEAU of Biddeford, 
FROST of Belgrade, GOLEK of Harpswell, TERRY of Gorham, WEBB of Durham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §4722, sub-§1, ¶GG, as amended by PL 2021, c. 322, §2, is 
further amended to read:
GG.  In accordance with the credit for affordable housing established in Title 36, 
section 5219‑WW and in accordance with rules adopted under the Maine 
Administrative Procedure Act:
(1)  Allocate the credit;
(2)  Administer and enforce the requirements of the credit; and
(3)  Perform other functions and duties necessary for the proper administration of 
the credit, including providing any necessary certifications and notices to taxpayers 
and to the Department of Administrative and Financial Services, Bureau of 
Revenue Services containing information required by the State Tax Assessor 
necessary for determining eligibility and the amount of the credit for each taxable 
year; and.
Rules adopted under this paragraph are routine technical rules.;
Sec. 2.  30-A MRSA §4722, sub-§1, ¶HH, as enacted by PL 2021, c. 322, §3, is 
amended to read:
HH.  Provide the joint standing committee of the Legislature having jurisdiction over 
housing matters copies of any reports required to be submitted to the United States 
Department of the Treasury or the Governor regarding the administration of the 
emergency rental assistance programs established by Section 501 of Division N of the 
federal Consolidated Appropriations Act, 2021 and Section 3201(a) of the federal 
American Rescue Plan Act of 2021.  Copies of any reports required to be submitted to 
the United States Department of the Treasury or the Governor must be submitted to the 
joint standing committee of the Legislature having jurisdiction over housing matters 
no later than 7 days after the reports are submitted to the United States Department of 
the Treasury or the Governor.  If no such reports are required to be submitted to the 
United States Department of the Treasury or the Governor, the Maine State Housing 
Authority shall submit, beginning January 15, 2022 and annually thereafter, to the joint 
standing committee of the Legislature having jurisdiction over housing matters a report 
on any rental assistance distributed by the Maine State Housing Authority.; and
Sec. 3.  30-A MRSA §4722, sub-§1, ¶II is enacted to read:
II.  Administer a program that provides a grant of up to $15,000 per home purchase for 
the purpose of reducing the mortgage rate of a loan for the purchase of an owner-
occupied single-family residence by a person whose income at the time of the grant is 
no greater than the income limits for qualified first-time home buyers established under 
United States Code, Section 143. The Maine State Housing Authority may use funds 
appropriated or allocated to the Maine State Housing Authority for a grant issued 
pursuant to this paragraph.
Sec. 4.  36 MRSA §5122, sub-§2, ¶BBB is enacted to read:
BBB.  For taxable years beginning on or after January 1, 2026, to the extent included 
in federal adjusted gross income and to the extent otherwise subject to state income 
tax, an amount equal to payments made to purchase private mortgage insurance for the 
taxpayer's primary residence located in this State. As used in this paragraph, "private 
mortgage insurance" has the same meaning as in Title 9-A, section 9-315, subsection 
1, paragraph A.
SUMMARY
This bill:
1.  Requires the Maine State Housing Authority to administer a program to provide 
grants of up to $15,000 to persons with low income and moderate income for the purpose 
of decreasing the rate of a mortgage loan used to purchase an owner-occupied single-family 
residence.  Current law allows the authority to refinance existing loans for the purpose of 
lowering mortgage payments or making home improvements for persons with low income; 
and
2.  Allows a taxpayer an income tax deduction for payments made to purchase private 
mortgage insurance for that taxpayer's primary residence located in Maine.