An Act to Preserve Affordability in Publicly Assisted Housing
Maine Legislature, Session 132, LD 1041
Sponsors: LOOKNER, DUSON
Amends: 30-A MRSA §4972, 30-A MRSA §4973, 30-A MRSA §4976

Legislative Document
No. 1041
H.P. 670
House of Representatives, March 14, 2025
An Act to Preserve Affordability in Publicly Assisted Housing 
Developments
Received by the Clerk of the House on March 12, 2025.  Referred to the Committee on 
Housing and Economic Development pursuant to Joint Rule 308.2 and ordered printed 
pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative LOOKNER of Portland.
Cosponsored by Senator DUSON of Cumberland and
Representatives: CAMPBELL of Orrington, DHALAC of South Portland, EDER of 
Waterboro, GATTINE of Westbrook, GOLEK of Harpswell, MALON of Biddeford, 
MASTRACCIO of Sanford, RANA of Bangor.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §4972, as repealed and replaced by PL 2023, c. 218, §3, is 
repealed and the following enacted in its place:
§4972.  Definitions
As used in this subchapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Affordability restriction.  “Affordability restriction” means a limit on the rent 
amount an owner may charge for occupancy of a dwelling unit in publicly assisted rental 
housing or a limit on the income of a person or family to qualify for admission to publicly 
assisted rental housing.
2.  Financial assistance.  “Financial assistance” means funding in the form of grants, 
tax credits or tax incentives provided by a federal, state or local government entity for 
which receipt is contingent upon constructing or maintaining dwelling units available to 
rent at an affordable amount based on the income of the person or family compared to the 
area median income and on market rates for rental units in that geographic area.
3.  Holder.  "Holder" means the Maine State Housing Authority or a municipal housing 
authority that holds the option to purchase a low-income rental housing project.
4.  Low-income rental housing.  "Low-income rental housing" means rental housing 
with 5 or more dwelling units in which any of the dwelling units are:
A.  Subject to federal or state income eligibility restrictions;  
B.  Subject to rents that are controlled, regulated or assisted by a federal or state agency 
pursuant to a regulatory agreement, rental assistance agreement, restrictive covenant, 
mortgage or other documentation; or 
C.  Subject to requirements contingent upon financial assistance as defined in this 
section.
Sec. 2.  30-A MRSA §4973, first ¶, as amended by PL 2023, c. 218, §4, is further 
amended to read:
Any person, firm or organization that owns or has a controlling interest in any low-
income rental housing may not sell, transfer title, prepay a mortgage or take other action in 
regard to the property that would result in the termination of any income eligibility 
restrictions, rent affordability restrictions or financial assistance designed to make a rental 
unit affordable to low-income or moderate-income people without providing notice, as 
outlined in subsection 1, to the tenants of that property, a tenant organization for that 
property, if any, the Maine State Housing Authority and, if the property is located in the 
area of operation of a municipal housing authority, the municipal housing authority, as 
provided in this section.
Sec. 3.  30-A MRSA §4973, sub-§1, as amended by PL 2023, c. 218, §4, is repealed 
and the following enacted in its place:
1.  Notice.  The notice required by this section must be provided as follows. 
A.  The notice must include: 
(1)  The address of the low-income rental housing;
(2)  The name and address of the owner of the low-income rental housing;
(3)  Notification of the date on which the affordability restriction or financial 
assistance will terminate; and
(4)  Any other information as required by the Maine State Housing Authority by 
rule.
B.  If the remaining term of financial assistance is more than 2 years, the notice must 
be given at least 2 years before the termination of the financial assistance.
C.  If the remaining term of financial assistance is less than 2 years as of the effective 
date of this Act, the notice must be provided by November 30, 2025. 
D.  If the owner intends to sell, transfer title, prepay a mortgage or take other action in 
regard to the property that would result in the termination of any affordability 
restrictions or financial assistance, the notice must be provided at least 90 days prior to 
the owner entering into a contract or other agreement or taking any action that would 
result in termination of any affordability restrictions or financial assistance.  
E.  Any notice required by this section shall be provided by delivery in person or by 
certified mail, return receipt requested, to the party to whom notice is required, or with 
respect to tenants, the notice is sent by first-class mail and a copy is left in or under the 
door of the tenant’s dwelling unit.
Failure to provide notice as required by this subsection does not reduce the 90-day period 
within which the Maine State Housing Authority or the municipal housing authority, if any, 
may submit, in writing, the intention to pursue the option described in subsection 2.
Sec. 4.  30-A MRSA §4973, sub-§2, as amended by PL 2023, c. 218, §4, is further 
amended to read:
2.  Option.  The Maine State Housing Authority or the municipal housing authority, if 
any, has the option to purchase the property subject to the notice requirements of this 
section at its current appraised value, as determined by appraisers for the owner of the 
property and the holder that has stated the intention to exercise the option to purchase 
within 90 days of receiving the notice required by subsection 1.  The municipal housing 
authority must have opportunity to exercise the option to purchase.  The holder has the 
option throughout the 90-day period.  Failure to exercise the option to purchase within 90 
days constitutes a waiver of that option by the holder.  By stating in writing its intention to 
pursue its option during the 90-day period, the holder has an additional 90 days, beginning 
on the date the appraised value is determined by the appraisers for the owner and the holder, 
to buy or to produce a buyer for the property.  This additional 90-day period may be 
extended by mutual agreement between the holder and the owner of the property. The 90-
day period and any agreed upon extension beginning on the date the appraised value is 
determined is automatically extended for any additional time required to obtain 
governmental approvals of any sale or transfer transaction and an additional 60 days after 
receipt of approval.  The holder has the right to assign its option to a nonprofit corporation 
upon such terms as the holder may determine, including, but not limited to, requiring the 
assignee to agree to additional income eligibility restrictions and rental restrictions for a 
duration as determined by the holder.
A.  Nothing in this This section prevents may not prevent an owner of the property 
from deciding not to sell, transfer or take other action described in this section. The 
withdrawal or revocation, or failure to close on a sale pursuant to the option within the 
time provided in this subsection, extinguishes any option held by the holder or an 
assignee.
Sec. 5.  30-A MRSA §4973, sub-§3, as amended by PL 2023, c. 218, §4, is further 
amended to read:
3.  Exceptions.  The holder may not possess any option when a bona fide buyer, by 
contract with the seller, agrees to maintain the property as low-income housing without any 
termination or other modification to the income eligibility restrictions or rental affordability 
restrictions or financial assistance applicable to the property.  The notice provisions of this 
section apply to this subchapter.
Sec. 6.  30-A MRSA §4973, as amended by PL 2023, c. 218, §4, is further amended 
by enacting at the end a new paragraph to read:
The notice provisions of this section apply to this subchapter.
Sec. 7.  30-A MRSA §4976, first ¶, as amended by PL 1993, c. 175, §12, is further 
amended to read:
Any owner or purchaser of low-income rental housing who sells, transfers title or takes 
other action in regard to that property that would result in the termination of financial 
assistance designed to make a rental unit affordable to low-income or moderate-income 
people shall allow the current tenants to remain in the dwelling units for 6 months from the 
date of sale, transfer of title or other action in regard to the property, at the same rents or 
portion of the total rents charged to the tenants before that sale, transfer of title or other 
action in regard to the property, or the owner may relocate the tenants to comparable units 
with comparable rents in accordance with the procedure established by rules of the Maine 
State Housing Authority.
SUMMARY
This bill amends the notice an owner of an affordable rental housing property is 
required to provide when the limitation of the rent amount an owner may charge or the 
income a person or family needs to qualify to rent in an affordable housing development is 
likely to end, whether due to sale or transfer of the property, termination of state or federal 
financial assistance or other action taken by the owner.  The notice requirements for the 
end of the limitation due to the termination of federal and state financial assistance is set at 
years prior to the end of the financial assistance, or November 30, 2025 if the financial 
assistance will end in less than 2 years from the effective date of this legislation.  The notice 
requirement for any other termination of the limitation remains at 90 days.  The bill makes 
other changes to the Maine Revised Statutes, Title 30-A, subchapter 12 to adjust for the 
amended language.