Committee recommends amendment to let Maine Housing make construction loans for manufactured-home communities
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Summary
The committee recommended reporting LD 2057 "ought to pass as amended," amending Maine statute to permit Maine State Housing Authority to make construction loans consistent with its corporate purposes and adopt rules; Maine Housing testified that subsidy-backed loans include affordability covenants.
Augusta, Maine — The committee recommended LD 2057 "ought to pass as amended," a bill that would amend Maine State Housing Authority's statutory authority to make construction loans for manufactured-housing communities and align program rules and affordability protections.
Sponsor and staff explained the yellow-sheet amendment replaces or adjusts section 48‑32 to permit Maine State Housing Authority to make construction loans "to carry out its corporate purposes and powers," while requiring the authority to adopt rules governing submission, borrower qualifications, location and construction standards and related safeguards. The amendment also removes a prescriptive contribution formula contained in the original bill and instead ties activity to the authority's existing rulemaking and corporate mission.
Representatives of Maine State Housing described how subsidy levels inform ongoing affordability covenants in their programs. "Whenever Maine Housing either lends with a low-cost loan or puts subsidy into a transaction, every program we have does have ongoing affordability covenants," said Adam Cray, senior director for finance and lending at Maine Housing, noting covenants vary with the amount of subsidy per unit.
Members raised worries about guaranteeing long-term affordability in manufactured-housing parks and asked Maine Housing about prior practice; agency staff said they have done a small number of conversion loans to resident ownership and that most of their programs include covenants tied to subsidy levels. Chair and sponsor emphasized the amendment preserves mission-driven protections while broadening the authority to carry out construction loans tied to Maine Housing's purpose.
After a caucus the committee recorded a recommendation of "ought to pass as amended" with six yes and two no among those present; members were reminded they had two business days for absentee voting. The committee closed the LD 2057 work session.
What's next: Committee staff will finalize the amendment language for filing; OFPR will prepare any fiscal note as needed during drafting.