AUGUSTA - The Legislature's Labor and Housing Committee voted last week to advance a measure with bipartisan support from Rep. Sam Zager, D-Portland, that would help low-income Mainers establish or improve credit through their rental payments.
As amended, LD 1107 would create a two-year pilot program at the Maine State Housing Authority to connect renters' favorable payment histories on a voluntary basis to the databases of national credit agencies, such as Equifax, Experian and TransUnion. Maine State Housing would later report back to the committees of jurisdiction on the effectiveness of the program.
"Too many Mainers have difficulty establishing credit for major purchases, foregoing investments like buying a home or accessing post-secondary education, which contributes to growing income inequality and generational wealth disparities," said Zager. "Renter credit reporting builds credit for low-income residents and helps the market function more efficiently."
Participation in the program would help low-income Mainers across the state access better financial health. It would also help landlords deal with complex legal requirements affordably and encourage timely rent payments by providing an incentive for renters.
The legislation has received widespread support from Maine State Treasurer Henry Beck, the Maine State Housing Authority, the Maine Real Estate Managers Association, Coastal Enterprises and the Central Maine Apartment Owners Association. Additional testimony can be found here.
"Building credit is a powerful tool for lifetime financial security," said Zager. "This bill aims to significantly lower barriers and long-term costs that would restrict Mainers from accessing life-changing investments."
The bill will move to the full Legislature for consideration in the coming weeks.
Zager, a member of the Health and Human Services Committee, is serving his second term in the Maine House and represents part of Portland.
Contact:
Brian Lee [Zager], c. 305-965-2744