AUGUSTA - The Maine House of Representatives unanimously voted to advance legislation sponsored by Rep. Sam Zager, D-Portland, that would help low-income Mainers establish or improve credit through their rental payments.
"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."
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. Participation in the program would help low-income Mainers across the state access better financial health and also help landlords to deal with complex legal requirements affordably. Maine State Housing would later report back to the Legislature on the effectiveness of the program.
The bill faces further votes in both the House and Senate.
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