AUGUSTA - Rep. Traci Gere, D-Kennebunkport, presented LD 1732, An Act To Amend the Sales Tax Exemption for Nonprofit Housing Development Organizations, before the Legislature's Taxation Committee on Tuesday. The bill would expand the exemption to allow nonprofit developers to serve households with incomes up to 120% of the area median income, an increase from the current threshold of 80%, as defined by the U.S. Department of Housing and Urban Development.
"The lack of available housing that Mainers can afford is one of the most challenging issues facing our state," said Gere. "Throughout Maine, many people are being priced out of homeownership, including public safety workers, teachers, nurses and other essential workers who are vital to the functioning of a healthy society. This bill will help our nonprofit housing organizations build more homes that are affordable for the people we need to stay and work here to sustain and grow our economy."
The Maine Real Estate and Development Association (MEREDA) and Maine State Housing Authority both testified in support of the legislation.
"We think now is the time to take this action," said Elizabeth Frazier on behalf of MEREDA. "To fix our low inventory, we need to build more units. To ensure enough of those units are affordable to Mainers, we must bring down the per-unit cost of production. MEREDA believes this legislation will help reduce costs and lead to more affordable housing production."
"While access to this tax exemption is not likely to make or break a project, if the objective is to build a home that is affordable to teachers, firefighters or municipal officials, every dollar counts," said Erik Jorgensen, director of government relations at MaineHousing. "This would seem to be a common-sense measure, one that is consistent with Maines housing goals and fair to all of our nonprofit development organizations. We appreciate that Rep. Gere brought it forward."
The Legislature's Taxation Committee will hold a work session on the bill in the coming weeks.
Gere, a member of the Labor and Housing Committee, is serving her first term in the Maine House and represents Kennebunkport and parts of Biddeford and Kennebunk.
Contact:
Jackie Merrill [Gere], c. 812-1111