Housing committee advances governor's budget measures, shifts roughly $69 million into housing programs

Sen. Chip Curry, committee chair, opened a work session on the governor's budget and led the Committee on Housing and Economic Development through agency-by-agency consideration of initiatives.

The committee approved a mix of special revenue and general fund initiatives that direct new and one-time resources toward homelessness services and housing production. Analyst Lynn Westfall told members the packet included the full initiative list (buff packet), DECD clarifying language (purple), proposed amendments (yellow) and a crosswalk (green).

Most notable votes advanced funding under the Maine State Housing package (T17). The committee voted to transfer a package of line items that in aggregate move roughly $69 million from the budget stabilization fund into special revenue accounts for housing: a $55 million transfer into Maine State Housing other special revenue accounts and $14 million into the Emergency Housing Relief Fund. The panel also approved a $12 million allocation for emergency transitional and permanent housing and a $37.5 million one-time appropriation to support construction of roughly 300 affordable homes through low-income housing tax credit and homeownership programs.

On homelessness operations, the panel approved the Shelter Operating Subsidy, increasing per‑night support that MaineHousing staff said will raise the subsidy from roughly $7 per bed-night to about $12 per bed-night (Eric Jorgensen, MaineHousing). The motion to accept item 294 passed with the vote recorded as 7-1.

The committee also approved a $10 million pilot for middle-income housing intended for rental units at up to 120% of area median income (AMI) and homeownership up to 150% AMI. Members debated an amendment to add language for a revolving loan structure and a sliding scale of assistance; MaineHousing expressed concerns about subsidizing higher-income units but supported the program structure and the sliding scale proposal. After amendment the motion passed 6-3.

MOCA (Maine Office of Community Affairs) initiatives and manufactured-housing-related changes were considered later in the packet. Committee members approved several MOCA position changes and restructuring items, and discussed language in Part RRR that removes a statutory fee cap for manufactured housing community licensing. Because removing the cap would trigger major-substantive rulemaking and could delay fee revenue used to fund a new attorney-general position supporting enforcement, the committee adopted an amendment allowing MOCA a temporary adjustment to the per-site fee (the amendment set an interim authority for an increased fee level and included a sunset; the committee approved the amendment and recorded the motion as 7-3).

Several votes were unanimous; others were recorded with closer margins (commonly 6-3 or 5-3 depending on the item). When a vote was not unanimous, the committee chair noted that the committee's letter to the Appropriations and Financial Affairs (AFA) committee will include the precise tallies for each part.

What happens next: committee staff will include the voted initiatives and amended language in the letter to AFA. Where the committee approved language that requires subsequent rulemaking or statutory detail, staff noted additional follow-up will be necessary to finalize fee levels or program rules.

Representative/Member quotes: "This is our work session on the governor's budget," Sen. Chip Curry said at the start of the meeting. On the question of tourism funds being repurposed, one member said concerns were understood but that "this money does not reduce any of the marketing and tourism promotion activities that the Maine Office of Tourism does." Eric Jorgensen of MaineHousing summarized the shelter subsidy effect: "It's going to take it from about $7 ... and I think this will bring it up to around $12."

The committee paused the budget work after completing the packet and moved to the first work session for LD 2173 (housing bill). The committee recorded motions and will report individual non-unanimous tallies to AFA in its letter.