Sen. Bailey bill to protect residents of mobile home parks sent to Governor’s desk

AUGUSTA — On Wednesday, June 25, the Maine Senate sent a bill from Sen. Donna Bailey, D-Saco, to the Governor’s desk. LD 1768, “An Act to Protect Residents of Mobile Home Parks by Amending the Real Estate Transfer Tax,” would amend the real estate transfer tax, thereby protecting residents of mobile home parks.

“Now more than ever, it is critical that we stand up for residents of mobile home parks. As we continue to work on the affordable housing crisis, we need to protect and preserve mobile home parks, which offer affordable housing for seniors as well as young families,” said Sen. Bailey. “Yet, as we’ve seen on the news, they are vulnerable to out-of-state private equity firms that purchase the parks, raise the rents and drive residents from their homes. Since then, residents, including those right here in Atlantic Village and Old Orchard Village, have asked for help. This bill will help.”

LD 1768 would 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 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 would 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.

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 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. Last week, 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.

LD 1768 now goes to the Governor’s desk for her signature.

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