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V O L . X X X I I N O. X I I § 2 J U N E 1 , 2 0 2 6 12 T he shortage of housing afford- able for low- to middle-income Mainers continues to be a crit- ical issue for economic growth. Recent legislative action will have some positive impact, but housing advo- cates stress there is more work to be done to reach the state's goal of creat- ing 84,000 more homes by 2030. The good news e 132nd Legislative session passed a number of bills aimed at addressing the state's housing needs. e $519 mil- lion supplemental budget — added to an $11.65 billion two-year appro- priation approved in 2025 — allocates funding for a range of programs to boost housing. "In particular, the budget includes $63.5 million for housing and homeless response programs to build affordable housing, support shelters and warm- ing centers and provide resources to towns to implement land use policy," Laura Mitchell, executive director of the nonprofit Maine Affordable Housing Coalition, says. e Maine Affordable Housing Coalition estimates the funding will support the creation of close to 300 housing units. e measure also includes funds to make improvements to seniors homes to allow them to age in place and provide limited rental support to avoid evictions. is allocation is predicted to provide for the upgrade of 645 senior homes. "All in all, MAHC's goals for the session were to provide funding for affordable housing and cut the red tape for housing development," Mitchell says, "and we made forward progress in both those areas." Reduced regulatory restraints In terms of cutting red tape, Mitch- ell cites the passage of LD 128, which streamlines the Department of Environ- mental Protection permitting process. Championed by the Build Homes Build Communities coalition, LD 128 supports a clearer path for small multifamily developments; proj- ects that include detached residen- tial housing for up to four fami- lies, including accessory dwelling units, instead of just single-fam- ily housing. LD 161 will begin the process of updating the 30-year-old subdivi- sion law "that has created duplicate review pathways, along with overly reactive reviews for small develop- ments," Mitchell says, "which can halt new housing in its tracks, and has been confusing after decades of minor edits." LD 2224 seeks to reduce some construction costs by mandating a study of fire codes, including those that call for sprinkler systems in sin- gle-family homes. LD 2225 supports municipal code enforcement efficiency and training to reduce barriers to creating more housing. A win for rental development One notable bill signed into law this spring by Gov. Janet Mills extends the Maine Affordable Housing Income tax credit through 2036. LD 2116 is designed to boost affordable rental housing development, by providing up to $10 million annually. When paired with federal 4% Low Income Housing Tax Credits, the funding will help finance construc- tion and preservation of income- restricted homes. e program is expected to help address the growing need for more housing for the state's aging popu- lation, with at least 30% of new unit credits targeted for senior housing. Rural areas of Maine should also benefit under the new law; another 20% is targeted for construction in rural areas and 10% of the credits are set aside for the preservation of USDA rural development projects. In testimony to the Joint Standing Committee on Taxation in January, Mitchell said since the program was enacted in 2020, $61 million in state tax credits has leveraged $350 mil- lion in outside investment for hous- ing development, resulting in 824 new affordable homes built. "Further," she adds, "108 older affordable homes have been pre- served across the state." Home shortage Housing advocates see wins and losses in Legislative session B y T i n a F i s c h e r F I L E P H O T O / J I M N E U G E R Maine Affordable Housing Coalition goals for the session were to provide funding for affordable housing and cut the red tape for housing development, and we made forward progress in both those areas. — Laura Mitchell Maine Affordable Housing Coalition Laura Mitchell F I L E P H O T O Gov. Janet Mills