Maine Lawmakers Advance Bills to Expand Affordable Housing Options
Maine lawmakers are considering legislation aimed at increasing the supply of affordable housing, with a particular focus on streamlining the process for industrialized housing construction and making manufactured home ownership more accessible. Two bills recently received support from the Committee on Housing and Economic Development and are now headed to the full Legislature for consideration.
Addressing the Classification of Manufactured Homes
Currently, manufactured homes located on rented property, such as mobile home parks, are legally classified as personal property rather than real estate in Maine. This distinction can limit homeowners’ access to traditional financing options. Rep. Tracy Gere (D-Kennebunkport), sponsor of LD 2231 and co-chair of the housing committee, explained that this classification restricts homeowners’ ability to secure financing at rates comparable to those available for real estate purchases.
According to Jennifer Corbett of Norway Savings Bank, this classification results in higher costs, shorter loan terms and fewer consumer protections for homeowners. Converting manufactured homes to real property would create a more stable and transparent ownership structure.
LD 2231 aims to establish a process for homeowners to convert their manufactured homes to real property, thereby opening access to more favorable financing options. Greg Payne, senior advisor on housing at the Governor’s Office of Policy Innovation and the Future, believes this change would disproportionately benefit low- and middle-income households, stating it’s “one of the most impactful proposals” he’s seen in the affordability space.
If enacted, the bill would also prevent mobile home or manufactured home park owners from requiring nondisclosure agreements as a condition of mediation with residents.
Incentivizing Industrialized Housing Construction
The committee also recommended passage of LD 2230, which seeks to bolster the industrialized housing industry – where structures are assembled off-site and then transported to their final location. This legislation proposes an incentive program offering grants for housing units and establishing a construction extension partnership program to support industry training and technical assistance.
Phoenix McLaughlin, director of strategy implementation at the Department of Economic and Community Development, highlighted the potential cost savings of industrialized construction methods, stating that “adequate scale” is needed to unlock manufacturing efficiencies. Incentivizing the employ of industrialized construction in Maine could help achieve that scale.
Maine’s Housing Needs
A 2023 study indicated that Maine needs an additional 38,500 housing units to meet current demand, with a projected need of at least 84,000 homes by 2030. The MaineHousing Housing Outlook Report, released in January, identified affordability as a central and worsening issue, noting that despite increased affordable housing production, the overall housing supply remains constrained.
LD 2230 would also direct the Department of Economic and Community Development to create a pilot program focused on the efficient construction of multifamily housing units.