AUGUSTA - The Maine House voted on Tuesday to give initial approval to a measure sponsored by Rep. Traci Gere, D-Kennebunkport, that would expand the current sales tax exemption for nonprofit housing developers.
LD 1732 would 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%.
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. Only Aroostook County was classified as affordable.
"Working people are effectively being priced out of homeownership in our state, including teachers, nurses and others in essential sectors," said Gere. "By increasing the income threshold for the sales tax exemption, this bill will enable nonprofit organizations to better address the needs of a group of potential homeowners who are currently unable to purchase homes in most of Maine."
The bill faces additional votes 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