Bill seeking $100M for energy-efficient affordable housing moves forward
Photo / Maureen Milliken
The Maine Legislature's Labor and Housing Committee Monday voted "ought to pass" on a bill that would provide $100 million for energy-efficient affordable housing over the next two years.
The Maine Legislature's Labor and Housing Committee has endorsed a bill that would provide $100 million over two years to building energy-efficient affordable housing.
The bill, LD 1656, is not only aimed at filling the affordable housing gap, but also addresses the state's skilled labor shortage, the quality of rental housing for low-income Mainers and the state's climate change goals.
The money would go to MaineHousing, the state's housing authority, which would work with developers to create multifamily housing that would be required to include 55% to 60% as set-rate apartments, with the rest being market-rate.
State Rep. Rebecca Millett, D-Cape Elizabeth, is sponsor. At its May 10 public hearing the bill was supported by people from the the construction and building industries, as well as renters, people who have been homeless and housing advocates. The committee backed the bill by a vote of 8-4.
Millett said the bill is designed to be part of a comprehensive solution to the interconnected housing, labor and climate crises. It aims to help close Maine’s affordable housing gap, help reduce the state's climate impact and meet Maine’s increasing need for both skilled sustainable building experts, as well as provide more jobs with fair pay and benefits.
House Speaker Ryan Fecteau, D-Biddeford, a co-sponsor, called the bill "just the kind of creative solution Maine needs" to tackle the issues it addresses.
Maine is short 20,000 affordable rental units, according to the National Low Income Housing Coalition. Many low-income Mainers also live in substandard housing, particularly those who earn less than 30% of their area median income. The state's AMI for a household is $57,918, but it varies depending on region.
Renters of the set-rate apartments would not spend more than 25% of their income on rent and utilities, with the balance subsidized if necessary.
Housing, jobs, economic development
Tiana Warriner, of Auburn, a mother of two young children, testified the bill will help people like her. She's been on the low-income housing waiting list for more than a year and as been homeless four times in the last 10 years. She’ll likely lose her apartment in July, and can't find anything new.
“Finding an affordable place is nearly impossible — and most of the time there isn’t even anything available," she told the committee. "I'm about to buy a camper and live there for the summer, that’s how bad it is here. I have friends who have had to move out of state because they can’t find an affordable place to live in Maine.”
Besides funding "responsible construction" of energy-efficient low-income housing, the bill will require project labor agreements — the contracts used in construction that set employment terms — that will raise working standards for construction trades and expand registered apprenticeship programs.
Jason J. Shedlock, regional organizer for the Laborers’ International Union of North America, testified that the bill "not only builds houses, but builds careers." And the standards mean that Mainers know they construction will be quality, completed on time and on budget by a responsible contractor.
The energy efficiency of the housing will also have a positive impact on the state's workforce, the bill's supporters say. "Sustainable building is a major growth industry and this funding will create more good construction jobs in Maine and grow the scale of green building and streamline supply chains," a news release about the committee vote said.
Nearly 20% of Maine’s carbon dioxide emissions come from housing, and reducing them will help low-income Mainers, who are disproportionately hurt by climate change.
Supporters also touted the multiplier effects — each dollar invested in affordable housing leverages public and private resources to generate income, including resident earnings and additional local tax revenue, and supports job creation and retention. They also said that green construction requirements will open up more opportunities for innovative sustainable construction businesses.
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