Sen. Cameron Reny introduces bill to create tax incentives to increase the supply of affordable housing in Maine

AUGUSTA – On Wednesday, March 5, Sen. Cameron Reny, D-Bristol, introduced a bill that would create tax incentives to encourage the sale of mobile home parks and other multi-unit housing developments to resident-owned cooperatives or cooperative affordable housing corporations. This legislation would help preserve affordable housing options throughout the state. LD 554, “An Act to Encourage Resident-owned Communities and Cooperatives and Preserve Affordable Housing Through Tax Credits,” was the subject of a public hearing before the Legislature’s Joint Standing Committee on Taxation.

“Mobile homes and manufactured housing parks are some of the last truly affordable housing options in our state,” said Sen. Reny. “However, certain out-of-state companies are buying mobile home parks and increasing the rent to almost double, without much regard for the hardships this places on residents. The tax incentives included in this legislation would give residents a leg up when they try to buy their homes. We must pursue every option we can to combat our state’s housing crisis. This measure would help preserve the number of units of affordable housing in manufactured housing parks and apartment buildings throughout Maine.”

LD 554 creates a tax deduction to incentivize the sale or transfer of housing developments, housing parks or apartment complexes to resident-owned communities or cooperative affordable housing corporations. This bill allows for an income tax exemption of up to $750,000 on capital gains from these transfers. LD 554 also outlines the performance measures that would be used to evaluate the effectiveness of the tax deductions in meeting the goal of preserving affordable housing supply.

LD 554 faces further action in the Taxation Committee.

Sen. Reny represents Maine Senate District 13, which includes most of Lincoln County and the towns of Washington and Windsor.

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