AUGUSTA — House Speaker Ryan Fecteau asked fellow lawmakers Wednesday to move forward with a $300 million borrowing request to support housing, childcare and residential water and sewer systems.
The Biddeford Democrat is sponsoring LD 483, a general fund bond issue “to secure prosperity for Maine families and businesses.”
“If we want to get serious about addressing these large, looming challenges that impact everyone, and most importantly our economy, I think it’s time to make a large investment,” Fecteau told members of the Appropriations Committee.
Several of those who spoke in support of the bill say the funding is a vital part of addressing a statewide housing shortage. To meet demand, Maine needs 84,000 new or renovated housing units by 2030.
“We’re facing a crisis in terms of the availability of affordable housing,” said Cullen Ryan, executive director of Community Housing of Maine. “It’s affecting homelessness as well. When our shelters are full and at capacity, it is because we are unable to find places for people to move out of the shelter.”
Ryan offered statistics that show Maine has the 16th highest average rent in the country and has experienced a 50% increase in housing prices since 2020.
The $300 million in Fecteau’s bill includes $80 million for the state’s tax credit for affordable housing and $25 million for the Maine Housing Authority’s rural affordable rental program.
In addition, it earmarks $100 million to create a new program that seeks to create a partnership between childcare agencies and public schools. It would require a 100% match in funds.
Lastly, it sets aside $75 million to expand public water and public sewer systems in residential areas, with a 50% local match required.
“As all of you know, a lack of access to public sewer and public water can be the difference between a 60-unit project and a 12-home subdivision in many of our communities,” Fecteau said.
Fecteau’s proposal is one of 11 general fund bond requests that the Legislature’s budget committee will consider over the next two days. Others are likely to come forward later as the Legislature continues its work until mid-June.
The bills all require bipartisan support in the Legislature and if approved, will go before voters in a future election.
Other bond requests heard Wednesday:
- LD 506, a request for $50 million to support technological innovation in life sciences, biomedical technology, environmental and renewable energy technology, forestry, agriculture, aquaculture and composites.
- LD 690, a request for $100 million to support the housing authority’s rural rentals, low-income housing tax credit and affordable homeownership and home repairs.
- LD 691, a request for $25 million to support the Small Enterprise Growth Fund, which makes investments in small, independent Maine companies.
- LD 798, a request for $50 million to help build or renovate a facility to produce mass timber using Maine forest products.