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Council debates joining multi-city letter on LD 21 24 to direct transfer-tax revenue to shelter subsidy program
Summary
Councilors discussed whether to sign a service-center municipalities’ support letter for LD 21 24, a proposal to redirect 1.8% of the real estate transfer tax to the Maine State Housing Authority Shelter Subsidy Program for 2026–27; concerns included whether the funds would return to Penobscot County and whether Bangor should draft its own letter with added protections.
City staff outlined a draft multi-municipality letter supporting legislative proposal "LD 21 24," which would reduce the percentage of real-estate transfer tax retained by counties by 1.8% and direct that amount to the Maine State Housing Authority Shelter Subsidy Program for 2026–27. The staff presentation said the change is intended to help service-center municipalities that host shelters and to spread shelter-funding burdens across municipalities in a county.
Councilors raised multiple concerns: one councilor said taking money from a county pool could simply shift costs back to the city and that distribution procedures may not guarantee that paying counties receive funds proportional to their contributions. The staff response acknowledged there is an application and distribution framework for the shelter subsidy program and that municipalities would have to advocate to get funds to local shelters. Staff said the bill would take effect on 09/01/2026 if enacted, and that the legislation was framed as temporary for 2026–27 but could become permanent in practice.
Next steps and council preferences: Councilors debated whether to sign the multi-city letter or draft a Bangor-specific letter that expresses guarded support while requesting assurances the paying counties receive proportionate benefit. Several councilors favored drafting a separate Bangor letter to include edits urging non-county funding streams or assurances of proportional distribution; staff agreed to draft language for council consideration. No vote or binding commitment to sign the multi-municipality letter was recorded at the workshop.
