Governor Mills Signs Legislation Extending Maine's Affordable Housing Tax Credit

Last week, 20 units of senior apartments in Aroostook County were preserved as affordable housing through the program signed into law by Governor Mills

Governor Janet Mills announced today that she has signed LD 2116 to extend Maine's landmark Affordable Housing Tax Credit for an additional eight years. Governor Mills established the credit program in 2020, with strong bipartisan support of the Legislature, as the largest state investment in housing in Maine's history.

Over the past six years, the Maine Affordable Housing Tax Credit has helped preserve 108 existing units of affordable housing across the state, with an additional 824 units either built or in the pipeline for construction.

Last week, the Town of Washburn utilized the credit to purchase the Salmon Brook Meadows property, preserving 20 units of affordable housing for older adults in Aroostook County.

"During my first term, I was proud to sign legislation creating the Affordable Housing Tax Credit, giving communities across Maine the tools they need to preserve aging housing and create new homes," said Governor Mills. "With support from my Administration and the Legislature, this credit has already helped deliver hundreds of affordable homes for Maine people. We have more work to do, but by extending it today, we are one step closer to ensuring every Maine person can find a safe, affordable place to call home."

"The rising cost of living is hurting families across Maine, and nowhere is this problem more glaring than when trying to find an affordable place to live," said Rep. Ambureen Rana, D-Bangor, sponsor of LD 2116. "Too many Mainers are living month-to-month or even day-to-day, wondering how they're going to pay rent and keep a roof over their heads. Extending the Affordable Housing Tax Credit will allow us to continue building more units that are desperately needed right now, particularly for working families, seniors and rural communities."

"With this action, Maine is sustaining real momentum--bringing more housing online, strengthening communities, and supporting the state's economic future," said Dan Brennan, Director of MaineHousing. "We thank Governor Mills and the Legislature for their support."

In Washburn, Salmon Brook Meadows was transferred to the Washburn Housing Development Corporation, a nonprofit created by the Town to buy the property with the assistance of the Genesis Community Loan Fund, which works to transfer affordable housing properties from private landlords to nonprofit ownership to preserve long-term affordability.

The Washburn Housing Development Corporation will use $500,000 from the tax credit, and $350,000 in Federal funds through the Community Development Block Grant program at the Maine Department of Economic and Community Development, to make necessary structural repairs, electrical upgrades, renovations to shared spaces, and enhance accessibility and safety features -- allowing seniors to stay in their homes.

"Preserving existing affordable housing is one of the most urgent challenges we face in the Town of Washburn," said Washburn Town Manager Donna Turner. "The Maine Affordable Housing Tax Credit made this project possible. It gives communities like ours the ability to step in, preserve housing, and make the improvements needed to ensure residents can continue living safely and comfortably in their homes."

"What happened in Washburn this week is exactly what the Affordable Housing Tax Credit was designed to do," said Liza Fleming-Ives, Executive Director of the Genesis Community Loan Fund. "It allows communities to act at a critical moment to preserve homes and keep them affordable, and to invest in their long-term quality and safety. Extending the tax credit means this practical, effective solution will continue to keep residents in their homes and ensure their stability in communities across Maine."

Since 2019, the Mills Administration has dedicated more $350 million to alleviate Maine's housing crunch -- over five times the amount the state spent on housing from 2000 to 2018.

These investments have resulted in the creation of 2,100 new apartments built and occupied to date, with more than 1,800 more under construction and over 1,500 in the underwriting pipeline. In the past year alone, the state has financed more than 1,000 affordable homes, mostly new construction.