AUGUSTA - Gov. Janet Mills recently signed into law a bill sponsored by Rep. Traci Gere, D-Kennebunkport, that will expand the current sales tax exemption for nonprofit housing developers.
LD 1732 will amend the exemption to allow nonprofit developers to serve households with incomes up to 120% of the area median income as defined by the U.S. Department of Housing and Urban Development, an increase from the current threshold of 80%.
"Throughout our state, too many hard-working people are unable to find a place to live, including nurses, teachers, public safety workers, hospitality workers and others who play such an important role in our local communities," said Gere. "This legislation will give us another tool to address the housing crisis and help our nonprofit housing developers build more homes for people who otherwise would be priced out."
According to the Maine State Housing Authority's 2021 Homeownership Housing Facts and Affordability Index, 15 of Maines 16 counties were classified as unaffordable, meaning a household earning area median income could not cover the payment on a 30-year mortgage for a median priced home using less than 28% of gross income.
The new law will go into effect August 8, 2022.
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