Senate gives initial approval to Sen. Reny bill to create tax incentives to increase the supply of affordable housing in Maine

AUGUSTA — On Wednesday, May 28, the Maine Senate voted unanimously in favor of LD 554, “An Act to Encourage Resident-owned Communities and Cooperatives and Preserve Affordable Housing Through Tax Credits.” The bill, sponsored by Sen. Cameron Reny, D-Bristol, would create tax incentives to encourage the sale of mobile home parks and other multi-unit housing developments to resident-owned cooperatives, cooperative affordable housing corporations, or municipal housing authorities. This legislation would help preserve affordable housing options throughout the state.

“It’s encouraging to see the Senate unanimously support this bill to promote resident-owned mobile home parks during a week that shows exactly why it is needed,” said Sen. Reny. “This vote comes days after another mobile home park in Winslow went on the market and residents of a park in Gorham submitted an offer to buy their park. LD 554 would give residents a leg up when they try to buy their homes. We need to work together across the state and across party lines to preserve affordable housing options, especially mobile homes and manufactured housing parks, whose tenants deserve to be secure in their housing. I hope the Legislature will continue to support this important measure to ease our state’s housing crisis.”

LD 554, as amended, creates a tax deduction to incentivize the sale or transfer of housing developments, housing parks or apartment complexes to resident-owned communities, cooperative affordable housing corporations, or municipal housing authorities. 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 Maine’s affordable housing supply.

On Tuesday, May 27, residents of Friendly Village Mobile Home Park in Gorham submitted a bid to purchase their park. According to Maine state officials, the Spruce Ridge Mobile Home Park in Winslow has recently received a purchase offer from an anonymous buyer.

LD 554 now faces additional votes in the House and Senate.

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

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