An Act To Establish A Small-Cap Loan Guarantee Program For Affordable Housing Investments

LD 1238 establishes a state-backed loan guarantee program to support small affordable housing projects in Maine. It provides state guarantees covering up to 20% of loans for projects under $1 million that create housing affordable to households earning 80% or less of the area median income (or 60% for low-income housing). Developers must maintain affordability for 10 years and meet specific eligibility requirements, including submitting project details and paying an application fee. The Maine State Housing Authority administers the program, requiring annual reports on funded projects and housing units created. This directly affects developers of small housing projects and expands affordable housing options for low-to-moderate-income residents.