Gov. Janet Mills has approved the extension of Maine’s Affordable Housing Tax Credit program for another eight years, by signing into law last week LD 2216.
First established in 2020, the program is designed to boost affordable rental housing development. The program provides up to $10 million annually, with a maximum possible allocation of $15 million in any one year, including carried-forward credits.
Administered by MaineHousing, it pairs with federal 4% Low Income Housing Tax Credits to help finance the construction or preservation of income-restricted homes.
At least 30% of new housing unit credits are targeted for seniors and 20% for rural areas; 10% of the credits are set aside for the preservation of USDA rural development projects.
Projects that utilize the subsidy must remain affordable for at least 45 years. The credit is available for both new construction and for the rehabilitation of existing affordable housing units.
“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,” said state Rep. Ambureen Rana, D-Bangor, who sponsored LD 2116.
‘Real momentum’
Dan Brennan, director of MaineHousing, praised the effort.
“With this action, Maine is sustaining real momentum, bringing more housing online, strengthening communities and supporting the state’s economic future,” Brennan said.
Since 2019, Maine’s investments in affordable housing have helped create 2,100 new apartments, according to the Mills administration. Another 1,800 units are under construction and another 1,500 are in the pipeline. In the past year alone, the state has helped finance more than 1,000 affordable homes, mostly new construction.
