Supplemental Budget Takes Money Out of the HOME Fund
by Maine People’s Alliance
Affordable housing is an acute issue in every state. In response, many states have created housing trust funds
like our
Housing Opportunities for Maine (HOME) Fund. The HOME Fund has never been as important as it is today.
The HOME fund allows people with low and moderate incomes in Maine get back on their feet. The HOME
Fund creates housing opportunities for people who are homeless, senior citizens and people with disabilities,
along with their families. The HOME Fund also has a first time homebuyers program that helps people with limited
income to own their home.
Unfortunately, the Fund has been raided during tight budget times. The Maine People’s Alliance (MPA) has fought
hard to protect this critical fund. During 2008, the legislature approved a proposal to use HOME Fund monies for
the Bridging Rental Assistance Program (BRAP).
While MPA supports full funding of BRAP, we believe this should happen
through the General Fund. Luckily, we were able to secure a commitment to fund BRAP through the HOME Fund for one year
only.
The Legislature made a more significant cut to the HOME Fund with the passage of LD 262, An Act to Amend the
Credit for Historic Properties. This legislation uses HOME funds to support tax credits to rehabilitate historic
buildings, including affordable housing units. Although the funding will start off small this year ($80,000),
it will grow to over $10 million in the next several years, using most of the HOME Fund.
The HOME Fund was established specifically to support affordable housing. We are concerned that there is no
real guarantee that the tax credit will be linked to truly affordable housing.
Raids to the HOME Fund are unacceptable!
There is a severe shortage of affordable housing in Maine. We have a high percentage of people who struggle to pay
for housing yet we invest less in affordable housing than most states. In fact, Maine has put very little effort
into housing, even though we have the oldest housing stock in the nation, higher home heating costs, and a low median
income. The rate of foreclosures in Maine, like the rest of the country, has increased over the last few years,
putting more pressure on rental housing. Housing is a foundation for a better quality of life. The HOME Fund is the
single most important pool of money to create and rehab affordable housing here in Maine.
This is also a time when we’re dealing with an energy crisis. Thousands across the state have been struggling to
pay soaring heating costs while energy efficiency in buildings is at an all time low. The HOME fund provides resources
that rehab older buildings and make them more energy efficient reducing energy use and cost.
Why should the HOME Fund be protected?
The HOME Fund is able to get 10 to 20 times itself in matching Federal Funds. If the Fund is not raided, Maine
State Housing is able to get the greatest match from the federal government. The HOME Fund is one of the few pools
of money that generates more dollars to be used in Maine.
The HOME Fund is an economic engine for Maine communities; it leverages funds and generates revenue
through economic growth and taxes. Affordable housing development creates good jobs and stimulates the economy.
Maine People’s Alliance, Androscoggin Chapter
145 Lisbon Street
Lewiston, ME 04240
Phone: (207) 782-7876
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