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Bill > LD1238
ME LD1238
ME LD1238An Act to Establish a Small-cap Loan Guarantee Program for Affordable Housing Investments
summary
Introduced
03/25/2025
03/25/2025
In Committee
03/25/2025
03/25/2025
Crossed Over
Passed
Dead
05/27/2025
05/27/2025
Introduced Session
132nd Legislature
Bill Summary
This bill creates the Small-cap Loan Guarantee Program, through which the State provides loan guarantees to investors and developers for small-cap projects. A small-cap project is an affordable housing or low-income housing construction or rehabilitation project with a value of $1,000,000 or less. Under the bill, affordable housing is housing that is affordable to a household with an income at or below 80% of the area median income, as defined by the United States Department of Housing and Urban Development, and low-income housing is housing specifically designed to serve a household with an income at or below 60% of the area median income, as defined by the United States Department of Housing and Urban Development. The program is administered by the Maine State Housing Authority or an organization contracted by the Maine State Housing Authority to administer the program and funded by application fees based upon the amount and risk assessed of each loan guaranteed by the program.
AI Summary
This bill establishes a Small-cap Loan Guarantee Program administered by the Maine State Housing Authority to support affordable housing development. The program will provide state-backed loan guarantees for small housing projects valued at $1,000,000 or less, focusing on creating or rehabilitating affordable and low-income housing units. Investors and developers can apply for loan guarantees covering up to 20% of a project's loan amount, with eligibility requirements including submitting a detailed project proposal, demonstrating financial stability, and committing to maintain the housing's affordability status for 10 years. Participants must pay an application fee and comply with local building regulations. The program prioritizes projects in underserved areas and those providing long-term housing options for low-income households. If a participant defaults on a guaranteed loan, the administrator can pursue repayment through various legal means. The Maine State Housing Authority will conduct annual evaluations of the program and submit reports to the Legislature, and the State Auditor will review the program annually to ensure compliance and monitor its financial health. The program is set to begin accepting applications by January 1, 2027, with an effective date of July 1, 2026.
Committee Categories
Housing and Urban Affairs
Sponsors (5)
Last Action
Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD) (on 05/27/2025)
bill text
bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1238&snum=132 |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0813&item=1&snum=132 |
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