Gov. Janet Mills on July 1 signed into law a bill sponsored by Sen. Cameron Reny (D-Bristol) to create tax incentives for resident-owned housing organizations. Reny represents Maine Senate District 13, which includes most of Lincoln County. The law takes effect Sept. 24. 

According to a press release from the Maine Legislature Senate Majority Office, LD 554, “An Act to Encourage Resident-owned Communities and Preserve Affordable Housing Through Tax Deductions,” aims to encourage the sale of multi-unit housing developments to resident-owned cooperatives, cooperative affordable housing corporations, or municipal housing authorities.  

“Maine now has another tool to preserve affordable housing options in mobile home and manufactured housing parks,” said Reny in the release. “It gives residents of these communities a leg up when they want to buy the land under their homes. All Maine people deserve to be secure in their housing, and LD 554 demonstrates our commitment to making that a reality.”  

The office said the law creates a tax deduction to incentivize the sale or transfer of housing developments, manufactured housing communities, or apartment complexes to resident-owned communities, cooperative affordable housing corporations, or municipal housing authorities. It allows for an income tax exemption of up to $750,000 on capital gains from transfers, with the stated purpose of preserving and increasing the number of units of affordable housing in manufactured housing parks and apartment buildings. 

It also outlines performance measures to evaluate the effectiveness of the deductions, including full-time job retention, housing unit numbers, and measure of overall economic impact to the state.