Sen. Pierce introduces bond bill to support the trusted affordable and low-income housing programs

Posted: April 10, 2025 | Appropriations and Financial Affairs, Housing and Economic Development, Senator Pierce

AUGUSTA — On April 9, 2025, Senate Majority Leader Teresa S. Pierce, D-Falmouth, introduced a bill to authorize a $100 million bond to support affordable and low-income housing programs. LD 690, “An Act to Authorize a General Fund Bond Issue to Provide Funding for Affordable and Low-income Housing Programs,” was the subject of a public hearing before the Joint Standing Committee on Appropriations and Financial Affairs. 

Sen. Teresa S. Pierce

“We know that safe and sufficient housing is at the center of our lives. Without it, employees experience extended hardship getting to work and students struggle to focus and thrive at school. Employers also tend to search for workers who live within a drivable distance of the job,” said Sen. Pierce. “All of these housing programs have proven track records, and we should spend time, talent and treasure investing in programs that work and continue building affordable housing and supporting home ownership. If our beloved state is to remain economically competitive and become a home to thriving businesses and prosperous communities, we must pass this bill.”

LD 690 would authorize a $100 million bond to support programs run by the Maine State Housing Authority. $35 million would be allocated to the rural affordable rental program, $35 million would be allocated to the low-income affordable housing tax credit and $15 million would be allocated to the affordable home ownership program with 20% of the funding going towards the construction of homes in any of these areas using modular construction. The final $15 million in the bond would be in grants to support accessibility and home repairs with the aim of modernizing homes and making them more energy efficient, lowering energy costs for Mainers. 

“When people do not have secure housing, it sets them up for failure [—] mentally, socially, and financially. This then translates to strain on society as a whole. And those who do have a rental close to their workplace are often paying more than 30% of their salary, leading to frustrated citizens who can’t build equity or feel comfortable starting a family,” said Sam Lebel of Gray in written testimony to the Committee. “This encourages young people to leave Maine, [which] is already the oldest State by median resident age. Without young people to replenish the retiring workforce and embrace new industries and technologies, our State will undoubtedly face hardship.”

“Having a full-time job doesn’t guarantee housing affordability in Maine,” said Laura Mitchell, Executive Director of the Maine Affordable Housing Coalition in testimony to the Committee. “With the explosive rise in housing costs Maine (and the nation) has seen in the last few years, our most vital workforce [—] teachers, child care workers, medical assistants, restaurant workers, EMS workers and more  [—] can no longer afford housing and the programs these bonds would support such as the affordable home ownership program and rural affordable rental program that will otherwise END without this bond.”

As the former Senate chair of the Joint Select Committee on Housing in the 131st Maine Legislature, Sen. Pierce guided historic bipartisan investments to support rural renters and home buyers and bolster the production of low-income housing units. Results have shown that these programs work in towns and cities across Maine, but need further support from the Legislature.

LD 690 faces further action in the Appropriations Committee.