Gov. Mills signs Sen. Bailey bill to protect residents of mobile home communities
AUGUSTA — On Tuesday, July 1, Gov. Janet T. Mills signed a bill from Sen. Donna Bailey, D-Saco. LD 1768, “An Act to Protect Residents of Mobile Home Parks by Amending the Real Estate Transfer Tax,” will amend the real estate transfer tax to promote and support the purchase of mobile home parks by residents, which helps keep housing costs low for residents by avoiding purchase by out-of-state private equity firms.
“I still remember when residents of Atlantic Village and Old Orchard Village called me earlier this year asking me to do all I could to protect them from out-of-state corporations buying their parks,” said Sen. Bailey. “In the months that followed, my colleagues and I worked hard on several proposals to protect residents of mobile home parks. I am proud that my bill to help these residents received bipartisan support in the Taxation Committee and the Legislature. Now that the Governor has signed the bill into law, more help is on the way.”
LD 1768 will offer another possible solution to the ongoing, growing trend of out-of-state corporations and firms buying mobile home parks and imposing steep rent increases on the residents. The new law will support residents by eliminating the real estate transfer tax on sales of mobile home parks when the buyers are the residents themselves.
It will also clarify the purpose of real estate transfer tax funds going into the Housing Opportunities for Maine (HOME) Fund. These funds could be used to maintain housing affordability in mobile home parks, including supporting the ownership of mobile home parks, resident-owned housing cooperatives or other non-profit entities representing the interests of mobile home owners.
In 1982, the Maine State Legislature created the HOME Fund as a flexible source of funds to address affordable housing challenges. Currently, a portion of revenue generated by the transfer tax on real estate sales in Maine is allocated to MaineHousing to address the State’s affordable housing needs.
The key characteristic of this dedicated revenue is its flexibility. The HOME Fund also supports down payment assistance for first-time and first-generation homebuyers, home modifications and repairs for low-income households, shelters and supportive housing and the development of new housing units.
Additionally, MaineHousing can use the HOME Fund for a wide variety of housing initiatives that might not otherwise have adequate funding to provide access to clean water, foreclosure avoidance, mobile home replacement and emergency housing needs.
The law includes clarifying language that stipulates real estate transfer tax revenue contributed to the HOME Fund would continue to assist residents of mobile home parks — even after the temporary Mobile Home Community Preservation Fund exhausts its one-time balance.
In 2024, Gov. Janet Mills and the Legislature — with Sen. Bailey’s support — allocated $5 million in one-time funds for MaineHousing to establish the Mobile Home Community Preservation Fund. It supports the purchase of mobile home parks by their residents. In June, the Legislature passed and the Governor signed a budget that adds $3 million to the fund, continuing a successful program that has helped hundreds of Mainers save their homes.
As non-emergency legislation, the law will go into effect on Sept. 24, 2025, which is 90 days after the First Special Session of the 132nd Maine State Legislature adjourned sine die.
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