AUGUSTA, Maine (WGME) — A new bill introduced in Augusta could significantly expand the role MaineHousing plays in financing affordable housing projects across the state, as lawmakers consider changes to existing state law that would broaden the agency’s construction loan authority.
The proposed legislation would allow the Maine Housing Authority to issue construction loans for manufactured housing communities and mobile home parks—financing options that are currently restricted under state statute. Supporters say the change is aimed at addressing Maine’s growing housing shortage, particularly for lower-income residents and older Mainers.
Backers of the bill argue that expanding MaineHousing’s lending authority would help stretch limited public housing dollars and unlock additional development opportunities at a time when housing demand continues to outpace supply.
“The goal of this bill is simple: to ensure that our limited public housing dollars go further and to allow MaineHousing to finance more affordable housing projects across the state,” Sen. Chip Curry (D-Waldo) said.
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However, the proposal has drawn opposition from banking groups, who warn that expanding the agency’s lending role could blur the line between public financing and private-sector banking services.
“We are concerned that Section 1B threatens to overstep that line and cause a state agency to come into competition with banks operating in the state, and we find that problematic,” Josh Stearman of the Maine Bankers Association said.
Supporters counter that MaineHousing’s expanded authority would not replace private lending, but rather fill critical gaps—particularly in areas where traditional financing may be difficult to secure. In addition to new construction, advocates note the bill would also allow MaineHousing to finance the rehabilitation of existing homes, including properties occupied by aging residents who may otherwise struggle to afford necessary repairs.
The legislation comes as state leaders continue to search for ways to increase housing availability, preserve existing housing stock, and support affordability across both urban and rural communities. If approved, the bill could position MaineHousing as a more flexible financing tool in addressing one of Maine’s most pressing challenges.
The proposal remains under consideration as lawmakers weigh concerns over competition against the urgent need for expanded housing options statewide.
Originally reported by WGME Staff in WGME.
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