An Act to Authorize a General Fund Bond Issue for Investment in
Maine Legislature, Session 132, LD 1424
Committee: Appropriations and Financial Affairs
Sponsors: DAUGHTRY, GATTINE

Legislative Document
No. 1424
S.P. 580
In Senate, April 1, 2025
An Act to Authorize a General Fund Bond Issue for Investment in 
Workforce Housing and Raise Certain Income Eligibility Limits in 
the Affordable Homeownership Program
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President DAUGHTRY of Cumberland.
Cosponsored by Representative GATTINE of Westbrook and
Senators: BENNETT of Oxford, CURRY of Waldo, PIERCE of Cumberland.
Preamble.  Two thirds of both Houses of the Legislature deeming it necessary in 
accordance with the Constitution of Maine, Article IX, Section 14 to authorize the issuance 
of bonds on behalf of the State of Maine to provide funds as described in this Act,
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1.  Authorization of bonds.  The Treasurer of State is authorized, under the 
direction of the Governor, to issue bonds in the name and on behalf of the State in an 
amount not exceeding $10,000,000 for the purposes described in section 5 of this Part.  The 
bonds are a pledge of the full faith and credit of the State.  The bonds may not run for a 
period longer than 10 years from the date of the original issue of the bonds.
Sec. A-2.  Records of bonds issued; Treasurer of State. The Treasurer of State 
shall ensure that an account of each bond is kept showing the number of the bond, the name 
of the successful bidder to whom sold, the amount received for the bond, the date of sale 
and the date when payable.
Sec. A-3.  Sale; how negotiated; proceeds appropriated.  The Treasurer of 
State may negotiate the sale of the bonds by direction of the Governor, but no bond may 
be loaned, pledged or hypothecated on behalf of the State.  The proceeds of the sale of the 
bonds, which must be held by the Treasurer of State and paid by the Treasurer of State 
upon warrants drawn by the State Controller, are appropriated solely for the purposes set 
forth in this Part.  Any unencumbered balances remaining at the completion of the project 
in this Part lapse to the Office of the Treasurer of State to be used for the retirement of 
general obligation bonds.
Sec. A-4.  Interest and debt retirement.  The Treasurer of State shall pay interest 
due or accruing on any bonds issued under this Part and all sums coming due for payment 
of bonds at maturity.
Sec. A-5.  Disbursement of bond proceeds from General Fund bond issue.  
The proceeds of the sale of the bonds authorized under this Part must be expended as 
designated in the following schedule under the direction and supervision of the agencies 
and entities set forth in this section.
MAINE STATE HOUSING AUTHORITY
Provides funds to finance the construction of workforce housing in opportunity zones 
established pursuant to the federal Tax Cuts and Jobs Act of 2017.
Total 
$10,000,000
Sec. A-6.  Contingent upon ratification of bond issue.  Sections 1 to 5 do not 
become effective unless the people of the State ratify the issuance of the bonds as set forth 
in this Part.
Sec. A-7.  Appropriation balances at year-end.  At the end of each fiscal year, 
all unencumbered appropriation balances representing state money carry forward.  Bond 
proceeds that have not been expended within 10 years after the date of the sale of the bonds 
lapse to the Office of the Treasurer of State to be used for the retirement of general 
obligation bonds.
Sec. A-8.  Bonds authorized but not issued.  Any bonds authorized but not issued 
within 5 years of ratification of this Part are deauthorized and may not be issued, except 
that the Legislature may, within 2 years after the expiration of that 5-year period, extend 
the period for issuing any remaining unissued bonds for an additional amount of time not 
to exceed 5 years.
Sec. A-9.  Referendum for ratification; submission at election; form of 
question; effective date.  This Part must be submitted to the legal voters of the State at 
a statewide election held in the month of November following passage of this Act.  The 
municipal officers of this State shall notify the inhabitants of their respective cities, towns 
and plantations to meet, in the manner prescribed by law for holding a statewide election, 
to vote on the acceptance or rejection of this Part by voting on the following question:
"Do you favor a $10,000,000 bond issue for workforce housing in the 
State's opportunity zones?"
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within a corresponding square 
below the word "Yes" or "No."  The ballots must be received, sorted, counted and declared 
in open ward, town and plantation meetings and returns made to the Secretary of State in 
the same manner as votes for members of the Legislature.  The Governor shall review the 
returns.  If a majority of the legal votes are cast in favor of this Part, the Governor shall 
proclaim the result without delay and this Part becomes effective 30 days after the date of 
the proclamation.
The Secretary of State shall prepare and furnish to each city, town and plantation all 
ballots, returns and copies of this Part necessary to carry out the purposes of this 
referendum.
PART B
Sec. B-1.  Maine State Housing Authority to change Affordable 
Homeownership Program homebuyer income limit.  Resolved:  That the Maine 
State Housing Authority shall amend its rules governing the Affordable Homeownership 
Program to change the income limit of homebuyers from 120% to 150% of the area median 
income in all counties outside of Cumberland, Sagadahoc and York. The authority may 
adopt rules to require that a project must have leveraged funds. Rules adopted pursuant to 
this section are routine technical rules pursuant to the Maine Revised Statutes, Title 5, 
chapter 375, subchapter 2-A.
SUMMARY
The funds provided by the bond issue in Part A, in the amount of $10,000,000, will be 
used by the Maine State Housing Authority to finance workforce housing in the State's 
opportunity zones through its Affordable Homeownership Program.  Part B directs the 
Maine State Housing Authority to change the income limit of homebuyers participating in 
the Affordable Homeownership Program from 120% to 150% of the area median income 
in all counties outside of Cumberland, Sagadahoc and York. It also allows the authority to 
require leveraged funds.