Housing was a major part of an "affordability agenda" that Gov. Janet Mills unveiled in her final "state of the state" speech Tuesday night.
Mills proposed tapping the state's rainy day fund, to the tune of about $70 million, to pay for new and existing affordable housing initiatives.
Housing advocates and developers described the proposal as a way to keep chipping away at Maine's housing shortage.
Much of the funding, as proposed by the Mills administration, would replenish state programs that have subsidized the development of affordable housing in recent years, but have recently run dry.
They include the rural rental affordable housing program and the affordable homeownership program. The programs, which have been buoyed by state and federal funds, have been popular with housing developers, and as a result, Maine has increased housing production in recent years.
Laura Mitchell with the Maine Affordable Housing Coalition says the $70 million investment is needed, because despite recent progress, the state still needs tens of thousands of new homes by the end of the decade.
"Our state is facing a rainy day when it comes to housing, and we need bold action now to provide housing that people can afford," she said.
A recent MaineHousing report found that homes to rent or buy are increasingly unaffordable to the average Mainer. Over the last decade, increases in home prices have outpaced wage growth in Maine by more than threefold, the state housing authority said.
Mitchell said there's still interest in pursuing a housing bond for consideration by the Legislature this session. The proposal from the Mills administration would provide one-time funding for Maine housing production, but a bond, if approved by Maine voters, would fund affordable housing projects over future years.
Part of Mills' $70 million housing proposal included $10 million for a new program that would help fund the expansion of existing mobile home parks.
Liza Fleming-Ives with the nonprofit Genesis Community Loan Fund said she's heard from park owners who are interested in expanding but aren't sure how to pay necessary infrastructure upgrades. Adding more homes to a community will help to keep them affordable for residents, she said.
"It allows owners to spread the cost of operating those communities across more households," Fleming-Ives said. "It takes the burden off of the lot rents that are charged to individual households."
