Bill Summary – FastDemocracy

                                                                   APPROVED                  CHAPTER
                                                                   JUNE 20, 2025                  381
                                                                  BY GOVERNOR               PUBLIC LAW
                                   STATE OF MAINE
                                           _____
                           IN THE YEAR OF OUR LORD
                        TWO THOUSAND TWENTY-FIVE
                                           _____
                                   H.P. 670 - L.D. 1041
An Act to Preserve Affordability in Publicly Assisted Housing Developments
Be it enacted by the People of the State of Maine as follows:
    Sec. 1. 30-A MRSA §4972, as repealed and replaced by PL 2023, c. 218, §3, is
repealed.
    Sec. 2. 30-A MRSA §4972-A is enacted to read:
§4972-A. Definitions
   As used in this subchapter, unless the context otherwise indicates, the following terms
have the following meanings.
    1. Affordability restriction. "Affordability restriction" means, for rental housing:
    A. A limitation on the rent amount that is based on the income of the person or family
    renting the unit compared to the area median income or to market rates for rental units
    in that geographic area; or
    B. A limitation on the income of the person or family renting the dwelling unit.
     2. Financial assistance. "Financial assistance" means funding in the form of grants,
loans, rental assistance, subsidies, tax credits or other tax incentives provided by a federal,
state or local government entity for which receipt is contingent upon constructing or
maintaining dwelling units subject to an affordability restriction.
    3. Holder. "Holder" means the Maine State Housing Authority or a municipal housing
authority that holds the option to purchase a low-income rental housing project.
    4. Low-income rental housing. "Low-income rental housing" means rental housing
with 5 or more dwelling units in which any of the dwelling units are:
    A. Subject to affordability restrictions;
    B. Subject to rents that are controlled, regulated or assisted by a federal or state agency
    pursuant to a regulatory agreement, rental assistance agreement, restrictive covenant,
    mortgage or other documentation; or
    C. Subject to requirements as a condition of receiving financial assistance.
                                    Page 1 - 132LR0798(03)
    Sec. 3. 30-A MRSA §4973, first ¶, as amended by PL 2023, c. 218, §4, is further
amended to read:
     Any person, firm or organization that owns or has a controlling interest in any low-
income rental housing may not sell, transfer title, prepay a mortgage or take other action in
regard to the property that would result in the termination of any income eligibility
restrictions, rent affordability restrictions or financial assistance designed to make a rental
unit affordable to low-income or moderate-income people without providing notice, as
outlined in subsection 1, to the tenants of that property, a tenant organization for that
property, if any, the Maine State Housing Authority and, if the property is located in the
area of operation of a municipal housing authority, the municipal housing authority, as
provided in this section.
    Sec. 4. 30-A MRSA §4973, sub-§1, as amended by PL 2023, c. 218, §4, is further
amended to read:
     1. Notice. The notice required by section 4973-A must be made to the tenants, a
tenants' organization for the property, if any, the Maine State Housing Authority and the
municipal housing authority, if any, at least 90 days prior to the owner entering into a
contract for the sale or transfer or taking any action in regard to the property described in
this section. Failure to provide notice as required by this subsection does not reduce the 90-
day period within which the Maine State Housing Authority or the municipal housing
authority, if any, may submit, in writing, the intention to pursue the option described in
subsection 2.
    Sec. 5. 30-A MRSA §4973, sub-§2, as amended by PL 2023, c. 218, §4, is further
amended to read:
    2. Option. The Maine State Housing Authority or the municipal housing authority, if
any, has the option to purchase the property subject to the notice requirements of this
section at its current appraised value, as determined by appraisers for the owner of the
property and the holder that has stated the intention to exercise the option to purchase
within 90 days of receiving the notice required by subsection 1. The municipal housing
authority must have opportunity to exercise the option to purchase. The holder has the
option throughout the 90-day period. Failure to exercise the option to purchase within 90
days constitutes a waiver of that option by the holder. By stating in writing its intention to
pursue its option during the 90-day period, the holder has an additional 90 days, beginning
on the date the appraised value is determined by the appraisers for the owner and the holder,
to buy or to produce a buyer for the property. This additional 90-day period may be
extended by mutual agreement between the holder and the owner of the property. The 90-
day period and any agreed upon extension beginning on the date the appraised value is
determined is automatically extended for any additional time required to obtain
governmental approvals of any sale or transfer transaction and an additional 60 days after
receipt of approval. The holder has the right to assign its option to a nonprofit corporation
upon such terms as the holder may determine, including, but not limited to, requiring the
assignee to agree to additional income eligibility restrictions and rental restrictions for a
duration as determined by the holder.
    A. Nothing in this This section prevents is not intended to prevent an owner of the
    property from deciding not to sell, transfer or take other action described in this section.
    The withdrawal or revocation, or failure to close on a sale pursuant to the option within
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    the time provided in this subsection, extinguishes any option held by the holder or an
    assignee.
    Sec. 6. 30-A MRSA §4973, sub-§3, as amended by PL 2023, c. 218, §4, is further
amended to read:
     3. Exceptions. The holder may not possess any option when a bona fide buyer, by
contract with the seller, agrees to maintain the property as low-income housing without any
termination or other modification to the income eligibility restrictions or rental affordability
restrictions or financial assistance applicable to the property. The notice provisions of this
section apply to this subchapter.
    Sec. 7. 30-A MRSA §4973-A is enacted to read:
§4973-A. Notification of expiration
    Any person, firm or organization that owns or has a controlling interest in any low-
income rental housing shall provide notice of the expiration of any affordability restrictions
or financial assistance to the tenants of that property, a tenants' organization for that
property, if any, the Maine State Housing Authority and, if the property is located in the
area of operation of a municipal housing authority, the municipal housing authority.
    1. Notice contents. The notice required by this section must include:
    A. The address of the low-income rental housing;
    B. The name and address of the owner of the low-income rental housing;
    C. Notification of the date on which the affordability restriction or financial assistance
    will terminate; and
    D. Any other information as required by the Maine State Housing Authority by rule.
     2. Notice timing. If the affordability restriction or financial assistance is scheduled to
terminate in 2 or more years after the effective date of this section, the notice must be
mailed at least 2 years before the scheduled termination. If the affordability restriction or
financial assistance is scheduled to terminate less than 2 years after the effective date of
this section, the notice must be mailed by November 30, 2025.
     3. Notice delivery. Notice provided to the Maine State Housing Authority, a
municipal housing authority, a tenant and a tenants' organization must be sent by first-class
mail, return receipt requested. Notice to a tenant must also be left in or under the door of
the tenant's dwelling unit.
    Sec. 8. 30-A MRSA §4976, first ¶, as amended by PL 1993, c. 175, §12, is further
amended to read:
    Any owner or purchaser of low-income rental housing who sells, transfers title or takes
other action in regard to that property that would result in the termination of financial
assistance designed to make a rental unit affordable to low-income or moderate-income
people shall allow the current tenants to remain in the dwelling units for 6 months from the
date of sale, transfer of title or other action in regard to the property, at the same rents or
portion of the total rents charged to the tenants before that sale, transfer of title or other
action in regard to the property, or the owner may relocate the tenants to comparable units
with comparable rents in accordance with the procedure established by rules of the Maine
State Housing Authority.
                                     Page 3 - 132LR0798(03)
Statutes affected: 
Bill Text ACTPUB , Chapter 381: 30-A.4972, 30-A.4973, 30-A.4976