AUGUSTA – Last week, the Legislature’s Joint Standing Committee on Taxation voted to pass a measure sponsored by Rep. Amy Kuhn, D-Falmouth, that would increase the development of affordable housing in Maine by expanding the use of tax increment revenue for new authorized project costs.
Tax increment financing (TIF) is a finance tool used by towns to leverage the revenue from certain property taxes and direct it toward development and infrastructure costs. LD 1657 would expand what the funds can be used for to include the development, sale, purchase, support and operation of affordable housing units. Additionally, TIF funds could be used to assist with the creation and administration of a municipal loan program to help potential homebuyers with things like down payments and closing costs, helping to bring quality workforce housing more within reach for working Mainers.
According to a 2023 report released by MaineHousing, the state needs to build 80,000 new dwelling units by 2030 to address growing demand. Findings show that Maine’s housing shortage can be attributed to population growth, an aging housing stock and rising costs of development.
“The state’s housing issue is complex, and this measure gives towns another tool in their toolbox to confront it head on,” said Rep. Kuhn. “When we are able to create affordable housing solutions, it allows more folks to live and work in the communities of their choosing, which in turn boosts local economies. I am grateful that the Taxation Committee advanced this measure and look forward to advocating for its passage on the House floor.”
The measure will face votes in the House and Senate in the coming weeks.
Representative Amy Kuhn is serving her second term in the Maine House and represents part of Falmouth. She is the House chair of the Joint Standing Committee on Judiciary.
Contact:
Brian Lee (Kuhn) | 305-965-2744