An Act To Create Affordable Workforce and Senior Housing and Preserve Affordable Rural Housing
Sec. 1. 30-A MRSA §4722, sub-§1, ¶¶EE and FF, as enacted by PL 2017, c. 234, §18, are amended to read:
Sec. 2. 30-A MRSA §4722, sub-§1, ¶GG is enacted to read:
(1) Allocate the credit;
(2) Administer and enforce the requirements of the credit; and
(3) Perform other functions and duties necessary for the proper administration of the credit.
Sec. 3. 36 MRSA §191, sub-§2, ¶HHH is enacted to read:
Sec. 4. 36 MRSA §2534, as enacted by PL 2011, c. 548, §21 and affected by §36, is amended to read:
§ 2534. Credits for rehabilitation of historic properties and affordable housing
A taxpayer is allowed a credit credits against the tax otherwise due under this chapter as determined under section sections 5219-BB and 5219-VV.
Sec. 5. 36 MRSA §5219-VV is enacted to read:
§ 5219-VV. Credit for affordable housing
(1) Either the construction of one or more new buildings or the adaptive reuse of one or more previously constructed buildings that have not been previously used for residential purposes;
(2) Subject to a restrictive covenant requiring an income mix in which at least 60% of the units in the project to which credits are allocated are restricted to households with income at or below 50% of area median gross income; and
(3) Eligible for the 30% present value credit as described in Section 42 of the Code as a result of tax-exempt financing described in Section 42(h)(4)(B) of the Code.
An affordable housing project is allowed a credit under paragraph A or B but not both.
(1) Any previously allocated credits returned by a project must be added to that amount; and
(2) The authority may not allocate more than $25,000,000 in any calendar year.
(1) The first taxable year in which the federal low-income housing tax credit for that project is claimed for projects allocated a credit pursuant to subsection 2, paragraph A; and
(2) The first taxable year for which the project has an allocation of credit from the authority.
(1) The project was placed in service for federal tax purposes in the immediately preceding calendar year; and
(2) The allocation is made no later than the 60th day of the calendar year following the year in which the project was placed in service.
(1) In which at least 60% of the residential units for which credits are allocated are restricted to households with income at or below 50% of area median gross income; or
(2) That is a qualified rural development preservation project.
The requirements and the repayment obligation in this paragraph must be set forth in a restrictive covenant executed by the owner of the credit-qualified affordable housing project for the benefit of and enforceable by the authority and recorded in the appropriate registry of deeds before the owner of the property claims the credit.
In meeting these targets, senior housing that is located in rural areas may be included in the percentages in both paragraphs A and B.
(1) The number and type of new residential units created;
(2) The number and type of affordable United States Department of Agriculture, Office of Rural Development, Rural Housing Service residential units preserved;
(3) The amount of credits issued during the period being reviewed and the amount of other investment leveraged by the credits; and
(4) The extent to which allocations of the credits have met the targets described in subsection 8.
The Office of Program Evaluation and Government Accountability shall provide a report of its evaluation under this subsection to the joint standing committee of the Legislature having jurisdiction over taxation matters by February 1, 2024. Following receipt of the report, the joint standing committee shall determine whether the credit provided under this section is meeting its public policy objectives and whether it should be continued. The joint standing committee may submit a bill to the Second Regular Session of the 131st Legislature to accomplish its recommendations.
The purpose of this bill is to address Maine's shortage of safe, affordable housing by creating a state affordable housing tax credit. The tax credit is administered by the Maine State Housing Authority, which will allocate the state credit through a process similar to its current allocation of federal housing tax credits. Ten percent of the credit must be set aside for the preservation of affordable housing units that are constructed with financial assistance from the United States Department of Agriculture, Office of Rural Development, Rural Housing Service and at risk of losing their affordable status. In addition, 30% of the credit allocated to new housing units is targeted for seniors and 20% is targeted for rural areas. The credit is subject to reporting requirements and a process for tax expenditure review by the Office of Program Evaluation and Government Accountability.