Maine Senate gives initial support to Sen. Bailey bill to protect residents of mobile home parks

AUGUSTA — On Monday, June 2, the Maine Senate gave its initial support to 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,” seeks to amend the real estate transfer tax and protect residents of mobile home parks.

“I remember the time I lived in a mobile home park in my district, and I continue to hear from older folks who live there now,” said Sen. Bailey. “They may not own the ground beneath them, but they pay rent for a roof over their heads. They are deeply concerned that out-of-state corporations are going to buy their parks and raise the rents well beyond their low or modest incomes. In Maine, we have a large population of retirees and seniors. If we pass this bill, then we can preserve and protect some of the last available affordable housing to them.”

LD 1768 offers 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 bill would support residents by eliminating the real estate transfer tax on sales of mobile home parks when the buyers are the residents themselves.

It also clarifies 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.

As amended, the bill 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 all of its one-time $5 million balance.

In 2024, Gov. Janet T. 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 the coming weeks, LD 1768 will face additional votes in the Senate and House.

###